Market Overview

Kingstone Announces 2018 First Quarter Financial Results and 2019 Guidance

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Company to Host Conference Call on May 10, 2018 at 8:30 a.m. ET

Kingstone Companies, Inc. (NASDAQ:KINS) (the "Company" or
"Kingstone"), a multi-line property and casualty insurance holding
company, today announced its financial results for the quarter ended
March 31, 2018.

Financial and Operational Highlights

2018 First Quarter

(All results are compared to prior year period unless otherwise noted)

  • Direct written premiums1 increased 20.7%; Personal lines
    grew by 27.6%.
  • Net premiums earned increased 39.5% to $22.8 million.
  • Net investment income increased 61.3% to $1.4 million.
  • First quarter net catastrophe losses, including associated loss
    adjustment expenses and decrease in contingent ceding commissions, are
    now estimated at $4.6 million after taxes.
  • Net loss ratio of 75.6% compared to 50.7%. Net loss ratio, excluding
    Q1 2018 catastrophe losses
    1,
    of 51.3% compared to 50.7%.
  • Net operating income1 decreased to a loss of ($2.3 million)
    or ($0.22) per diluted share from a gain of $1.5 million or $0.15 per
    diluted share.
  • Net income decreased to a loss of ($2.7 million) or ($0.25) per
    diluted share from a gain of $1.5 million or $0.15 per diluted share.
  • Net combined ratio of 114.3% compared to 85.2%. Net combined ratio, excluding
    Q1 2018 catastrophe losses
    1,
    of 88.7% compared to 85.2%.
  • Book value per share of $8.27, down $.02 from March 31, 2017 and down
    $.63 from December 31, 2017.

Quarterly Dividend of $0.10 per share

The Company announced that its Board of Directors declared a quarterly
dividend of $.10 per share payable on June 15, 2018 to stockholders of
record at the close of business on May 31, 2018. This is our 28th
consecutive quarterly dividend.

Annual Meeting of Stockholders

The Company also announced that the 2018 Annual Meeting of Stockholders
will be held on Wednesday, August 8, 2018 at 9:00 A.M. at 15 Joys Lane,
Kingston, New York. Stockholders of record as of the close of business
on June 13, 2018 will be entitled to vote at the Annual Meeting.

Management Commentary

Barry Goldstein, Kingstone's Chairman and CEO, commented "Running the
risk of being the master of the obvious, that was one long cold winter,
far worse than any of the other twelve I've experienced as Kingstone's
Chairman. But, while the losses were elevated, mostly due to the early
January deep freeze, our core business remains highly profitable and
growing.

__________________________

(1) This measure is not based on GAAP and is defined and reconciled to
the most directly comparable GAAP measure in "Information Regarding
Non-GAAP Measures" below.

Excluding the catastrophe losses which added 25.6 points, our first
quarter underlying combined ratio was a very solid 88.7%. Catastrophe
losses reduced Net Operating Income by $0.39 per diluted share. Net
Operating Income per diluted share, excluding the catastrophe losses,
was $0.17. Looking back to Q1 2017, when there was a mild winter and no
catastrophe losses incurred, the Net Operating Income per diluted share
was $0.15.

Premiums continued to grow in the first quarter, with Direct Written
Premium growth of 20.7%, driven by growth in Personal Lines of 27.6%.
Recall that we signed a two year quota share treaty effective July 1,
2017, with the ceding percentage reduced from 40% to 20%. Couple this
with our organic growth and the result is an increase in net earned
premiums of almost 40%. As we deliberately deploy the proceeds of our
December 2017 debt offering, investment income increased in Q1 by more
than 61% over the prior year."

Dale Thatcher, Kingstone's Chief Operating Officer, continued, "This
series of winter storms, though more severe than average, were in line
with what you have to expect in this business. It's a reminder why
people need our product. As Barry indicated, this was probably the worst
winter weather losses we've suffered in the last ten years, but in spite
of that we still expect to achieve a combined ratio, excluding cat
losses, of between a 79% and 85% for the full year and cat losses of
between 5 points and 7.5 points on the combined ratio for the full year."

Ben Walden, Kingstone's EVP and Chief Actuary, commented, "Beginning
this year, Kingstone has changed its definition of a catastrophe event
to more closely align with the definition used by other major carriers.
Going forward, Kingstone will define catastrophe losses as those
associated with an event that is assigned a catastrophe number by the
Property Claim Services (PCS) unit of ISO (Insurance Services Office).
Kingstone experienced three such events in the first quarter that were
first disclosed in mid-March.

Kingstone's initial estimate of the net after-tax impact from the three
winter catastrophe events was conservatively stated at between $5
million and $7 million. Since the initial disclosure, the impact from
the two March storms has emerged to be less than originally anticipated.
At present, the expected total pre-tax net impact from the three events
is $5.9 million, or $4.6 million after tax.

Apart from the winter catastrophe events, underlying results remained
solid. Kingstone continued to observe favorable prior year claim
emergence with 0.4 points of favorable loss development recorded during
the quarter."

Financial Highlights Table

Financial Highlights       Three Months Ended March 31,
($ in thousands except per share data)

2018

 

2017

 

% Change

Direct written premiums* $ 31,526 $ 26,125 20.7 %
Net written premiums* $ 23,700 $ 16,734 41.6 %
Net premiums earned $ 22,838 $ 16,370 39.5 %
Total ceding commission revenue $ 1,695 $ 3,184 -46.8 %
Net investment income $ 1,384 $ 858 61.3 %
 
U.S. GAAP Net income (loss) $ (2,718 ) $ 1,471 -284.8 %

U.S. GAAP Diluted Earnings Per Share

$ (0.25 ) $ 0.15 -266.7 %
 
Comprehensive income (loss) $ (4,795 ) $ 1,853 -358.8 %
Net operating income (loss)* $ (2,305 ) $ 1,507 -253.0 %

Net operating income (loss) per diluted share*

$ (0.22 ) $ 0.15 -246.7 %
 
Return on average equity (annualized) -11.9 % 8.1 % -20 pts
 
Net loss ratio 75.6 % 50.7 % 24.9 pts
Net underwriting expense ratio   38.7 %   34.5 % 4.2 pts
Net combined ratio 114.3 % 85.2 % 29.1 pts
 
Effect of catastrophes on net combined ratio 25.6 pts 0 pts 25.6 pts
Net combined ratio excluding the effect
of catastrophes* 88.7 % 85.2 % 3.5 pts
 
* These measures are not based on GAAP and are defined and
reconciled to the most directly comparable GAAP measures in
"Information Regarding Non-GAAP Measures."
 

2018 First Quarter Financial Review

Net Income:

Net income decreased 284.8% to a net loss of $(2.72) million during the
three month period ended March 31, 2018, compared to net income $1.47
million in the prior-year period. The net loss, as compared to the prior
year net income, can be attributed primarily to a 24.9 point increase in
the net loss ratio. There was a 39.5% increase in net premiums earned,
which partially offset the increase in net loss ratio, reducing the net
loss.

Earnings per share:

Kingstone reported a loss of $(0.25) per diluted share for the three
months ended March 31, 2018, compared to $0.15 earnings per diluted
share for the three months ended March 31, 2017. Earnings per diluted
share for the three month periods ended March 31, 2018 and March 31,
2017 was based on 10.67 million and 9.85 million weighted average
diluted shares outstanding, respectively.

Direct Written Premiums1,
Net Written Premiums
1
and Net Premiums Earned:

Direct written premiums1 for the first quarter of 2018 were
$31.5 million, an increase of 20.7% from $26.1 million in the prior year
period. The increase is attributable to a 19.3% increase in the total
number of policies in-force as of March 31, 2018 as compared to March
31, 2017, driven by growth in personal lines resulting from the A.M.
Best rating upgrade. In 2017, we started writing Homeowners' policies in
New Jersey and Rhode Island which also contributed to growth in personal
lines.

(1) These measures are not based on GAAP and are defined and reconciled
to the most directly comparable GAAP measures in "Information Regarding
Non-GAAP Measures" below.

Net written premiums1 increased 41.6% to $23.7 million during
the three month period ended March 31, 2018 from $16.7 million in the
prior year period. The increase was due to growth and the reduction of
our personal lines quota share reinsurance rate to 20% on July 1, 2017,
from the prior rate of 40%.

Net premiums earned for the quarter ended March 31, 2018 increased 39.5%
to $22.8 million, compared to $16.4 million in the quarter ended March
31, 2017. The increase is due to growth and the reduction of our
personal lines quota share reinsurance rate to 20% on July 1, 2017, from
the prior rate of 40%.

Net Loss Ratio:

For the quarter ended March 31, 2018, the Company's net loss ratio was
75.6% compared to 50.7% in the prior period. The first quarter 2018 net
loss ratio increased due to an increase in the impact of catastrophe
losses from severe winter weather. The core loss ratio excluding the
impact of catastrophes and prior year loss development remained
approximately constant compared to the prior period.

Net Underwriting Expense Ratio:

For the quarter ended March 31, 2018, the net underwriting expense ratio
was 38.7% as compared to 34.5% in the prior year period. The increase of
4.2 percentage points was largely due to a decrease in ceding commission
revenue resulting from both the reduction of our personal lines quota
share reinsurance rate to 20% on July 1, 2017, from the prior rate of
40%, and from a $0.3 million decrease in contingent ceding commissions
due to catastrophes.

The change in quota share rates results in a significant decrease in
ceding commission revenue and an increase in net premiums earned. We
refer to our New York business as "Core" 1 and the business
in newly licensed states as "Expansion". The inception of our Expansion
business in 2017 creates a lag in net premiums earned related to that
business. This lag and the changes to quota share rates distort net
underwriting expense ratio comparisons between periods. Therefore, we
believe that utilizing the ratio of Core other underwriting expenses1
to Core direct written premiums1 offers a more consistent
comparison between periods. The Core other underwriting expense ratio
excludes start-up expenses related to Expansion business. The ratio of
Core other underwriting expenses to Core direct written premiums
remained consistent between the three months ended March 31, 2018 and
the prior year period (see table below).

The table below details the ratio of Core other underwriting expenses to
Core direct written premiums:

      Three months ended $ or
March 31, Point
2018   2017 Change
 
Core direct written premiums(1) $ 30,629   $ 26,125   $ 4,504  
 
Core other underwriting expenses(1) as a percentage
of Core direct written premiums
Employment costs 6.47 % 6.61 % -0.14 %
IT expenses 1.22 % 1.22 % 0.00 %
Underwriting expenses 1.66 % 1.59 % 0.07 %
State premium taxes 2.36 % 2.38 % -0.02 %
Professional fees 0.89 % 0.80 % 0.09 %
Other expenses 1.76 % 2.09 % -0.33 %
State regulatory fees   0.80 %   0.55 %   0.25 %
Total   15.16 %   15.24 %   -0.08 %
 

(1) This measure is not based on GAAP and is defined and reconciled to
the most directly comparable GAAP measure in "Information Regarding
Non-GAAP Measures" below.

Net Combined Ratio:

Kingstone's net combined ratio was 114.3% for the three month period
ended March 31, 2018, compared to 85.2% for the prior year period.

Balance Sheet / Investment Portfolio

Kingstone's cash and investment holdings were $184.2 million at March
31, 2018 compared to $138.9 million at March 31, 2017. The Company's
investment holdings are comprised primarily of investment grade
corporate, mortgage-backed and municipal securities, with fixed income
investments representing approximately 89.0% of total investments at
March 31, 2018 and 91.3% at March 31, 2017. The Company's effective
duration on its fixed-income portfolio is 5.1 years.

Net investment income increased 61.3% to $1.4 million for the first
quarter of 2018 from $858,000 in the prior year period, largely due to
an increase in invested assets. The purchase of higher rated securities
has led to a reduction in the pre-tax equivalent investment yield on
estimated annual income, excluding cash, to 3.38% at March 31, 2018 as
compared to 4.03% as of March 31, 2017.

Accumulated Other Comprehensive Income/Loss
(AOCI), net of tax

As of March 31, 2018, AOCI was $(1.39) million compared to $0.46 million
at March 31, 2017.

__________________________________________________________________________________________

Book Value

The Company's book value per share at March 31, 2018 was $8.27 a
decrease of 0.2% compared to $8.29 at March 31, 2017.

             
31-Mar-18 31-Dec-17 30-Sep-17 30-Jun-17 31-Mar-17
Book Value Per Share $ 8.27 $ 8.90 $ 8.83 $ 8.50 $ 8.29
 
% Decrease from specified period to 3/31/2018 -7.1 % -6.3 % -2.7 % -0.2 %
 

__________________________________________________________________________________________

Conference Call Details

Management will discuss the Company's operations and financial results
in a conference call on Thursday, May 10, 2018, at 8:30 a.m. ET.

The dial-in numbers are:
(877) 407-3105 (U.S.)
(201) 493-6794
(International)

Accompanying Webcast

The call will be simultaneously webcast over the Internet via the
Kingstone website or by clicking on the conference call link: https://78449.themediaframe.com/dataconf/productusers/kins/mediaframe/23936/indexl.html

The webcast will be archived and accessible for approximately 30 days.

__________________________________________________________________________________________

Information Regarding Non-GAAP Measures

Direct written premiums -
represents the total premiums charged on policies issued by the Company
during the respective fiscal period.

Core direct written premiums -
represents the total premiums charged on policies issued by the Company
during the respective fiscal period from its business located in New
York.

Expansion direct written premiums -
represents the total premiums charged on policies issued by the Company
during the respective fiscal period from its business located in newly
licensed states (i.e., outside New York).

Net written premiums -
represents direct written premiums less premiums ceded to reinsurers.

Net premiums earned - is the GAAP
measure most closely comparable to direct written premiums and net
written premiums. Management uses direct written premiums and net
written premiums, along with other measures, to gauge the Company's
performance and evaluate results. Direct written premiums and net
written premiums are provided as supplemental information, are not a
substitute for net premiums earned and do not reflect the Company's net
premiums earned.

Core other underwriting expenses
-
represents the total other underwriting expenses incurred by the
Company during the respective fiscal period from its business located in
New York.

Expansion other underwriting expenses
-
represents the total other underwriting expenses incurred by the
Company during the respective fiscal period from its business located in
newly licensed states (i.e., outside New York).

The table below details the direct written premiums, net written
premiums, and net premiums earned for the periods indicated:

       
For the Three Months Ended March 31,
2018   2017  

$ Change

  % Change
(000's except percentages)
Direct and Net Written Premiums Reconciliation:
 
Direct written premiums $ 31,526 $ 26,125 $ 5,401 20.7 %
Assumed written premiums - 4 (4 ) (100.0 ) %
Ceded written premiums   (7,826 )   (9,395 )   1,569   (16.7 ) %
 
Net written premiums 23,700 16,734 6,966 41.6 %
Change in unearned premiums   (862 )   (364 )   (498 ) 136.8 %
 
Net premiums earned $ 22,838   $ 16,370   $ 6,468   39.5 %
 

The table below details the Core direct written premiums, Expansion
direct written premiums, and direct written premiums for the periods
indicated:

     
For the Three Months Ended March 31,
2018   2017  

$ Change

  % Change
(000's except percentages)
Core and Expansion Direct Written Premiums Reconciliation:
 
Core direct written premiums $ 30,629 $ 26,125 $ 4,504 17.2 %
Expansion direct written premiums   897   -   897 na %
Direct written premiums $ 31,526 $ 26,125 $ 5,401 20.7 %
 

The tables below detail the Core other underwriting expenses, Expansion
other underwriting expenses, and other underwriting expenses, and the
ratio of Core other underwriting expenses to Core direct written
premiums, for the periods indicated:

       
For the Three Months Ended March 31,  
2018   2017  

$ Change

  % Change  
(000's except percentages)
Core and Expansion Other Underwriting Expenses Reconciliation:
 
Core other underwriting expenses $ 4,642 $ 3,982 $ 660 16.6 %
Expansion other underwriting expenses   390     230     160   69.6 %
Other underwriting expenses $ 5,032   $ 4,212   $ 820   19.5 %
 
Ratio of Core other underwriting expenses to Core direct written
premiums reconciliation:
 
Other underwriting expenses $ 5,032 $ 4,212 $ 820 19.5 %
Direct written premiums $ 31,526 $ 26,125 $ 5,401 20.7 %
 
Ratio of other underwriting expenses to direct written premiums   15.96 %   16.12 %   -0.16 % (1.0 )%
 
Other underwriting expenses $ 5,032 $ 4,212 $ 820 19.5 %
Expansion other underwriting expenses   390     230     160   69.6 %
Core other underwriting expenses $ 4,642   $ 3,982   $ 660   16.6 %
 
Direct written premiums $ 31,526 $ 26,125 $ 5,401 20.7 %
Expansion direct written premiums   897     -     897  

na

%

Core direct written premiums $ 30,629   $ 26,125   $ 4,504   17.2 %
 
Ratio of Core other underwriting expenses to Core direct written
premiums
  15.16 %   15.24 %   -0.08 % (0.5 )%
 

__________________________________________________________________________________________

Net operating income - is net income
exclusive of realized investment gains, net of tax. Net income is the
GAAP measure most closely comparable to net operating income.

Operating return on average common equity
- is net operating income divided by average common equity. Return on
average common equity is the GAAP measure most closely comparable to
operating return on average common equity.

Management uses net operating income and operating return on average
common equity, along with other measures, to gauge the Company's
performance and evaluate results, which can be skewed when including
realized investment gains, which may vary significantly between periods.
Net operating income and operating return on average common equity are
provided as supplemental information, are not a substitute for net
income or return on average common equity and do not reflect the
Company's overall profitability or return on average common equity.

The following table reconciles the net operating income to net income
and the operating return on average common equity to return on average
common equity for the periods indicated:

       
Three Months Ended Three Months Ended
March 31, 2018 March 31, 2017
   
Amount

Diluted
earnings
per
common
share

  Amount

Diluted
earnings
per
common
share

(000's except per common share amounts and percentages)

Net Operating Income and Diluted Earnings per Common Share
Reconciliation:

 
Net income (loss) $ (2,718 ) $ (0.25 ) $ 1,471   $ 0.15
 
Net realized loss on investments 523 55
Less tax benefit on net realized loss   110     19  
 
Net realized loss on investments, net of taxes   413   $ 0.04   36   $ -
 
Net operating income (loss) $ (2,305 ) $ (0.22 ) $ 1,507   $ 0.15
 
Weighted average diluted shares outstanding   10,669,992     9,848,494  
 
Operating Return on Average Common Equity (Annualized for
Quarterly Periods) Reconciliation:
 
Net income (loss) $ (2,718 ) $ 1,471
Average common equity $ 91,369 $ 72,389
Return on average common equity (annualized for quarterly periods) -11.9 % 8.1 %
 
Net realized loss on investments, net of taxes $ 413 $ 36
Average common equity $ 91,369 $ 72,389
Effect of net realized loss on investments, net of taxes, on return
on average common equity (annualized for quarterly periods)
1.8 % 0.2 %
 
Net operating income (loss) $ (2,305 ) $ 1,507
Average common equity $ 91,369 $ 72,389
 
Operating return on average common equity (annualized for
quarterly periods)
        -10.1 %         8.3 %    
 

Net combined ratio excluding the effect of
catastrophes
- is a non-GAAP ratio, which is computed as the
difference between GAAP net combined ratio and the effect of
catastrophes on the net combined ratio. We believe that this ratio is
useful to investors and it is used by management to reveal the trends in
our business that may be obscured by catastrophe losses. Catastrophe
losses can cause our results to vary significantly between periods
depending on their frequency and magnitude, and can have a significant
impact on the net combined ratio. We believe it is useful for investors
to evaluate this component separately and in the aggregate when
reviewing our underwriting performance. The most directly comparable
GAAP measure is the net combined ratio. The net combined ratio excluding
the effect of catastrophes should not be considered a substitute for the
net combined ratio and does not reflect the Company's net combined ratio.

The following table reconciles the net combined ratio excluding the
effects of catastrophes to the net combined ratio for the periods
indicated:

       
For the Three Months Ended
March 31,
2018   2017  

Percentage
Point Change

Net Combined Ratio Excluding the Effect of Catastrophes
Reconciliation:
 
Net combined ratio excluding the effect of catastrophes 88.7 % 85.2 % 3.5 pts
 
Effect of catastrophe losses
Net loss and loss adjustment expenses 24.3 % 0.0 % 24.3 pts
Net underwriting expense ratio 1.3 % 0.0 % 1.3 pts
Total effect of catastrophe losses 25.6 % 0.0 % 25.6 pts
 
Net combined ratio 114.3 % 85.2 % 29.1 pts
 

__________________________________________________________________________________________

The following table reconciles net operating income and diluted
operating earnings per share exclusive of catastrophe financial impact
to net operating income (loss) and diluted operating earnings per share
for the periods indicated:

       
For the Three Months Ended March 31,
2018 2017
   
Amount

Diluted
earnings
per
common
share

  Amount

Diluted
earnings
per
common
share

(000's except per common share amounts)
Net Operating Income and Diluted Operating Earnings per Share
Exclusive of Catastrophe Financial Impact:
 
Net operating income (loss) $ (2,305 ) $ (0.22 ) $ 1,507 $ 0.15
 
Catastrophe financial impact
Ceding commission revenue 334 -
Total expenses   4,872     -
Income from operations before taxes 5,206 -
Income tax expense   1,093     -
Total catastrophe financial impact   4,113   $ 0.39     - $ -
 
Net operating income exclusive of catastrophe financial impact $ 1,808   $ 0.17   $ 1,507 $ 0.15
 
Weighted average diluted shares outstanding   10,669,992     9,848,494
 

__________________________________________________________________________________________

About Kingstone Companies, Inc.

Kingstone is a property and casualty insurance holding company whose
principal operating subsidiary, Kingstone Insurance Company, is
domiciled in the State of New York. Kingstone is a multi-line property
and casualty insurance company writing business exclusively through
independent retail and wholesale agents and brokers. Kingstone is
licensed to write insurance policies in New York, New Jersey,
Pennsylvania, Connecticut, Massachusetts, Rhode Island, Maine, and
Texas. Kingstone offers property and casualty insurance products to
individuals and small businesses in New York, New Jersey, Rhode Island
and Pennsylvania.

Forward-Looking Statement

Statements in this press release may contain "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. All statements, other than statements of historical
facts, may be forward-looking statements. These statements are based on
management's current expectations and are subject to uncertainty and
changes in circumstances. These statements involve risks and
uncertainties that could cause actual results to differ materially from
those included in forward-looking statements due to a variety of
factors. More information about these factors can be found in
Kingstone's filings with the Securities and Exchange Commission,
including its latest Annual Report filed with the Securities and
Exchange Commission on Form 10-K. Kingstone undertakes no obligation to
publicly update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.

The following table summarizes gross and net written premiums1,
net premiums earned, and loss and loss adjustment expenses by major
product type, which were determined based primarily on similar economic
characteristics and risks of loss.

     
For the Three Months Ended
March 31,
2018   2017
 
Gross premiums written(1):
Personal lines $ 24,825,452 $ 19,461,972
Commercial lines 4,286,391 3,584,054
Livery physical damage 2,354,070 3,026,483
Other(2)   60,706     57,386  
Total $ 31,526,619   $ 26,129,895  
 
Net premiums written (1):
Personal lines $ 17,443,911 $ 10,466,368
Commercial lines 3,852,371 3,202,565
Livery physical damage 2,354,070 3,026,483
Other(2)   50,032     38,889  
Total $ 23,700,384   $ 16,734,305  
 
Net premiums earned:
Personal lines $ 17,040,256 $ 10,690,583
Commercial lines 3,229,970 2,842,580
Livery physical damage 2,520,684 2,792,347
Other(2)   46,707     44,238  
Total $ 22,837,617   $ 16,369,748  
 
Net loss and loss adjustment expenses:
Personal lines $ 12,961,206 $ 5,352,112
Commercial lines 2,449,598 1,528,796
Livery physical damage 1,164,081 965,522
Other(2) 58,674 (52,074 )
Unallocated loss adjustment expenses   632,771     498,640  
Total $ 17,266,330   $ 8,292,996  
 
Net loss ratio:
Personal lines 76.1 % 50.1 %
Commercial lines 75.8 % 53.8 %
Livery physical damage 46.2 % 34.6 %
Other(2) 125.6 % -117.7 %
Total 75.6 % 50.7 %
 
        1.   These measures are not based on GAAP and are defined and reconciled
to the most directly comparable GAAP measure in "Information
Regarding Non-GAAP Measures" above.
2. "Other" includes, among other things, premiums and loss and loss
adjustment expenses from our participation in a mandatory state
joint underwriting association and loss and loss adjustment expenses
from commercial auto.
 
KINGSTONE COMPANIES, INC. AND SUBSIDIARIES
       
Condensed Consolidated Statements of Operations and Comprehensive
Income (Loss) (Unaudited)
Three months ended March 31,       2018   2017
 

Revenues

Net premiums earned $ 22,837,617 $ 16,369,748
Ceding commission revenue 1,695,158 3,184,452
Net investment income 1,383,989 857,800
Net losses on investments (523,127 ) (54,506 )
Other income   308,233       289,700  
Total revenues   25,701,870       20,647,194  
 

Expenses

Loss and loss adjustment expenses 17,266,330 8,292,996
Commission expense 5,799,948 4,888,978
Other underwriting expenses 5,031,503 4,212,417
Other operating expenses 246,858 755,804
Depreciation and amortization 409,431 318,698
Interest expense   456,545       -  
Total expenses   29,210,615       18,468,893  
 
(Loss) income from operations before taxes (3,508,745 ) 2,178,301
Income tax (benefit) expense   (790,811 )     707,721  
Net (loss) income   (2,717,934 )   1,470,580  
 
Other comprehensive (loss) income, net of tax
Gross change in unrealized (losses) gains
on available-for-sale-securities (2,873,479 ) 524,822
 
Reclassification adjustment for losses
included in net income   243,773     54,506  
Net change in unrealized (losses) gains (2,629,706 ) 579,328
Income tax benefit (expense) related to items
of other comprehensive (loss) income   552,238     (196,972 )
Other comprehensive (loss) income, net of tax   (2,077,468 )   382,356  
 
Comprehensive (loss) income $ (4,795,402 ) $ 1,852,936  
 
(Loss) earnings per common share:
Basic $ (0.25 ) $ 0.15  
Diluted $ (0.25 ) $ 0.15  
 
Weighted average common shares outstanding
Basic   10,669,992     9,663,751  
Diluted   10,669,992     9,848,494  
 
Dividends declared and paid per common share $ 0.1000   $ 0.0625  
 
       
KINGSTONE COMPANIES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets            
March 31, December 31,
        2018   2017
(unaudited)

Assets

Fixed-maturity securities, held-to-maturity, at amortized cost (fair
value of
$5,062,065 at March 31, 2018 and $5,150,076 at December 31, 2017) $ 4,870,271 $ 4,869,808
Fixed-maturity securities, available-for-sale, at fair value
(amortized cost of
$130,912,757 at March 31, 2018 and $119,122,106 at December 31, 2017) 129,149,201 119,988,256
Equity securities, at fair value (cost of $16,383,342 at March 31,
2018 and

$13,761,841 at December 31, 2017)

16,600,485 14,286,198
Other investments   2,027,860       -  
Total investments 152,647,817 139,144,262
Cash and cash equivalents 31,594,167 48,381,633
Investment subscription receivable - 2,000,000
Premiums receivable, net 13,065,874 13,217,698
Reinsurance receivables, net 31,895,480 28,519,130
Deferred policy acquisition costs 15,130,213 14,847,236
Intangible assets, net 925,000 1,010,000
Property and equipment, net 5,132,755 4,772,577
Other assets   4,020,365       2,655,527  

Total assets

$ 254,411,671     $ 254,548,063  
 

Liabilities

Loss and loss adjustment expense reserves $ 56,272,113 $ 48,799,622
Unearned premiums 66,654,632 65,647,663
Advance premiums 2,216,603 1,477,693
Reinsurance balances payable 3,017,734 2,563,966
Deferred ceding commission revenue 4,347,812 4,266,412
Accounts payable, accrued expenses and other liabilities 4,501,593 7,487,654
Deferred income taxes 77,031 600,342
Long-term debt, net   29,163,116       29,126,965  

Total liabilities

  166,250,634       159,970,317  
 
Commitments and Contingencies
 
Stockholders' Equity
Preferred stock, $.01 par value; authorized 2,500,000 shares - -
Common stock, $.01 par value; authorized 20,000,000 shares; issued
11,679,334 shares
at March 31, 2018 and 11,618,646 at December 31, 2017; outstanding
10,666,665 shares at March 31, 2018 and 10,631,837 shares at
December 31, 2017
116,793 116,186
Capital in excess of par 68,163,744 68,380,390
Accumulated other comprehensive (loss) income (1,391,063 ) 1,100,647
Retained earnings   23,780,756       27,152,822  
90,670,230 96,750,045
Treasury stock, at cost, 1,012,669 shares at March 31, 2018
and 986,809 shares at December 31, 2017   (2,509,193 )     (2,172,299 )
Total stockholders' equity   88,161,037       94,577,746  
 
Total liabilities and stockholders' equity $ 254,411,671     $ 254,548,063  

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