Company to Host Conference Call on November
11, 2016 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 September 30, 2016.
Financial and Operational
Highlights
2016 Third Quarter
(All results are compared to prior year period unless otherwise
noted)
- Net income increased 47.5% to
$3,460,626, or $0.43 per diluted share
- Net operating income1 increased 39.2%
to $3,301,543, or $0.41 per diluted share
- Net premiums earned increased 19.2% to
$15.6 million
- Direct written premiums1 increased
10.6%; Personal lines grew by 11.6%
- Net combined ratio of 67.4% compared to
72.8%
- Return on average common equity
(annualized) of 25.1% compared to 22.1%
- Operating return on average common
equity (annualized)1 of 23.9% compared to 22.3%
- Book value per share increased to
$7.16, up 19.3% over Q3 2015 and up 5.3% over Q2 2016.
- Dividend declared of $.0625 per share
payable December 15th.
___________________
(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.
Kingstone Announces Quarterly Dividend of $0.0625 per
share
The Company announced that its Board of Directors declared a
quarterly dividend of $0.0625 per share payable on December 15,
2016 to stockholders of record at the close of business on November
30, 2016. This is our 22nd consecutive quarterly dividend.
Management Commentary
Kingstone’s Chairman and CEO, Barry Goldstein, commented about
the third quarter, “I am pleased to report that we posted our
single most profitable quarter ever, earning $.43 per share on a
fully diluted basis. Net income for the quarter was a record
$3,461,000, translating into an annualized ROE of 25.1%. For the
nine month period our diluted EPS was $.89 resulting in a nine
months annualized ROE of 17.9%, in spite of the severe winter
weather we experienced in the first quarter.
Record quarterly earnings was but one milestone achieved during
the quarter. We are also pleased to report that our annualized
direct written premiums1 now exceed $100 million and our total
portfolio fair value was $109 million at the end of the third
quarter. We look forward to executing on our expansion plans by
beginning to write business in New Jersey in early 2017.
Overall, our profitability was driven by the exceptional net
loss ratio for the quarter of 32.8%, down 5.7 points from last
year’s 38.5%. The elimination of the commercial auto line has and
will reduce the volatility in our results going forward. With the
new net quota share reinsurance treaty now in place, having the
same 40% ceding percentage as in the prior treaty, the quarterly
comparisons will be more easily understood.”
Kingstone’s SVP and Chief Actuary, Ben Walden, elaborated on the
loss ratio and growth rate for the quarter. “We continue to be very
happy with our underwriting results. Although the third quarter is
typically a good one from a loss ratio perspective, this quarter
was exceptional. Changes over the last year to our underwriting
guidelines, claims handling process, and targeted rate actions are
having the desired impact. Claim frequency continued to improve in
the third quarter of 2016, particularly in personal lines where
frequency was down 20% year over year. Loss ratio trends in our
commercial lines business are also favorable, as changes in our mix
of business towards higher coverage levels and higher average
premiums are driving improved results. We continue to close the
remaining commercial auto claims at levels consistent with or lower
than existing reserves, resulting in a favorable runoff of claims.
Our direct written premium growth rate continues in double digits,
at even more profitable levels per policy. Our combined ratio of
67.4% for the quarter is unparalleled in this competitive
environment. We are making changes designed to improve not only our
bottom line underwriting result but also our top line growth
opportunities. We continue to pursue our expansion plan in other
states, and have recently filed our initial homeowners product in
New Jersey. Favorable loss ratio trends, combined with continued
growth opportunities, again resulted in record-high underwriting
profits this quarter.”
Mr. Walden added, “Our core net loss ratio excluding severe
winter weather and prior year loss development decreased 8.9 points
from 42.1% to 33.2% in Q3 2016 as compared to Q3 2015. The
improvement was driven by reduced claim frequency and a reduced
number of large claims. Prior year loss development was slightly
favorable for the quarter, but not to the level of the year ago
period. There was no additional impact from Q1 2016 winter weather
claims recorded this quarter. ”
___________________
(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.
Financial Highlights Table
Financial Highlights
Three Months EndedSeptember
30,
Nine Months EndedSeptember
30,
($ in thousands except per share data)
2016
2015 % Change
2016
2015 % Change
Direct written premiums* $ 27,170 $ 24,570 10.6 % $ 76,375 $
67,226 13.6 % Net written premiums* $ 17,232 $ 21,337 -19.2 % $
48,847 $ 45,347 7.7 % Net premiums earned $ 15,646 $ 13,129 19.2 %
$ 45,189 $ 34,381 31.4 % Total ceding commission revenue $ 2,935 $
2,644 11.0 % $ 8,274 $ 9,388 -11.9 % Net investment income $ 709 $
649 9.2 % $ 2,286 $ 1,850 23.6 % U.S. GAAP Net income $
3,461 $ 2,346 47.5 % $ 6,844 $ 5,107 34.0 % U.S. GAAP Diluted EPS $
0.43 $ 0.32 34.4 % $ 0.89 $ 0.69 29.0 % Comprehensive income
$ 3,341 $ 2,312 44.5 % $ 8,041 $ 4,715 70.5 % Net operating income*
$ 3,302 $ 2,372 39.2 % $ 6,445 $ 5,178 24.5 % Net operating income
diluted EPS* $ 0.41 $ 0.32 28.1 % $ 0.83 $ 0.70 18.6 %
Return on average equity (annualized) 25.1 % 22.1 % 3 pts 17.9 %
16.1 % 1.8 pts Net loss ratio 32.8 % 38.5 % -5.7 pts 45.2 %
49.1 % -3.9 pts Net underwriting expense ratio 34.6 %
34.3 % 0.3 pts 33.8 % 29.9 % 3.9 pts Net combined
ratio* 67.4 % 72.8 % -5.4 pts 79.0 % 79.0 % 0 pts Effect of
catastrophes on net combined ratio 0 pts 0.6 pts -0.6 pts 3.1 pts
9.8 pts -6.7 pts Net combined ratio excluding the effect of
catastrophes* 67.4 % 72.2 % -4.8 pts 75.9 % 69.2 % 6.7 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."
2016 Third Quarter
Review
Net Income:
Net income increased 47.5% to $3.46 million during the three
month period ended September 30, 2016, compared to net income of
$2.35 million in the prior-year period. The increase can be
attributed to a 19.2% increase in net premiums earned, an 11.0%
increase in ceding commission revenue, a 9.2% increase in net
investment income, and a 5.7% decrease in our net loss ratio,
offset by an increase of 19.2% in other underwriting expenses
related to premium growth and other operating expenses.
Earnings per share (“EPS”):
Kingstone reported EPS of $0.43 per diluted share for the three
months ended September 30, 2016, compared to $0.32 per diluted
share for the three months ended September 30, 2015. EPS for the
three month periods ended September 30, 2016 and September 30, 2015
was based on 7.97 million and 7.38 million diluted weighted average
shares outstanding, respectively.
Direct Written Premiums1, Net Written
Premiums1 and Net Premiums Earned:
Direct written premiums1 for the third quarter of 2016 were
$27.2 million, an increase of 10.6% from $24.6 million in the prior
year period. The increase is attributable to a 13.7% increase in
the total number of policies in-force as of September 30, 2016 as
compared to September 30, 2015.
Net written premiums1 decreased 19.2% to $17.2 million during
the three month period ended September 30, 2016 from $21.3 million
in the prior year period. On July 1, 2015, the Company decreased
the quota share ceding rate in its personal lines quota share
treaty from 55% to 40%. This resulted in a $5.9 million return of
unearned premiums from reinsurers that were previously ceded under
the expiring personal lines quota share treaty. There was no change
to the Company’s quota share ceding rates on July 1, 2016, and no
return of unearned premiums from reinsurers (in contrast with what
occurred on July 1, 2015), thus creating a decrease in net written
premiums in the quarter ended September 30, 2016 compared to the
quarter ended September 30, 2015.
Net premiums earned for the quarter ended September 30, 2016
increased 19.2% to $15.6 million, compared to $13.1 million in the
quarter ended September 30, 2015. The increase was primarily due to
the Company’s continuing growth.
Net Loss Ratio:
For the quarter ended September 30, 2016, the Company’s net loss
ratio was 32.8%, compared to 38.5% in the prior year, an
improvement of 5.7 points.
The core net loss ratio for the third quarter of 2016, excluding
prior year development and severe winter weather, was 33.2%, which
was 8.9 points lower than the core net loss ratio of 42.1% recorded
for the comparable period in 2015. There was no impact from winter
weather claims in the quarter, compared to a 0.6 point impact in
the quarter ended September 30, 2015. The impact of prior year
development was favorable by 0.4 points for the quarter, compared
to favorable prior year development of 4.2 points for the quarter
ended September 30, 2015.
Net Underwriting Expense Ratio:
For the quarter ended September 30, 2016, the ratio of other
underwriting expenses to direct earned premiums was 16.2% as
compared to 16.0% in the prior year period. The Company believes
that utilizing the ratio of other underwriting expenses to direct
earned premiums offers a consistent comparison between periods when
there is a change in quota share ceding percentages.
For the quarter ended September 30, 2016, the Company’s net
underwriting expense ratio increased to 34.6% from 34.3% in the
prior year period.
Net Combined Ratio:
Kingstone’s net combined ratio was 67.4% for the three month
period ended September 30, 2016, compared to 72.8% for the prior
year period.
(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.
Balance Sheet / Investment
Portfolio
Kingstone’s cash and investment holdings were $109.0 million at
September 30, 2016, compared to $90.4 million at December 31, 2015.
The Company’s investment holdings are comprised primarily of
investment grade corporate, mortgage-backed and municipal
securities, with fixed income investments representing
approximately 89.3% of total investments at September 30, 2016, and
88.0% at December 31, 2015. The Company’s effective duration on its
fixed-income portfolio is 4.2 years, and this measure has declined
steadily over the past several quarters.
Net investment income increased 9.2% to $709,000 for the third
quarter of 2016 from $649,000 in the prior year period, largely due
to an increase in invested assets. The fixed income portfolio
restructuring added higher quality AA+ agency-backed mortgage bonds
as an asset class. This had the effect of reducing the average
effective maturity and duration of our fixed income portfolio. The
purchase of higher rated securities in the lower interest rate
environment of the third quarter led to a reduction in the pre-tax
equivalent investment yield on estimated annual income, excluding
cash, to 4.17% at September 30, 2016 as compared to 4.81% as of
September 30, 2015.
Accumulated Other Comprehensive Income
(AOCI), net of tax
During the quarter ended September 30, 2016, AOCI decreased by
$0.1 million to $1.7 million.
Book Value
The Company’s book value per share at September 30, 2016 was
$7.16, an increase of 19.3% compared to $6.00 at September 30, 2015
and a sequential quarterly increase from June 30, 2016 of 5.3%.
30-Sep-16
30-Jun-16 31-Mar-16 31-Dec-15 30-Sep-15
Book Value Per Share $ 7.16 $ 6.80 $ 6.32 $ 6.18 $ 6.00
% Increase from specified period to 9/30/2016 5.3 % 13.3 %
15.9 % 19.3 %
Conference Call Details
Management will discuss the Company’s operations and its
financial results in a conference call on Friday, November 11,
2016, at 8:30 a.m. ET.
The dial-in numbers are:
(877) 407-3105 (U.S.)
(201) 493-6794 (International)
Accompanying Slide Presentation and
Webcast
The Company will also have an accompanying slide presentation
available in PDF format on the Kingstone Companies website at
http://www.kingstonecompanies.com/.
The presentation will be made available 30 minutes prior to the
conference call. In addition, the call will be simultaneously
webcast over the Internet via the Kingstone website or by clicking
on the conference call link:
http://kingstonecompanies.equisolvewebcast.com/q3-2016. 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.
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.
The table below details the direct written premiums, net written
premiums, and net premiums earned for the periods indicated:
For the Three Months
EndedSeptember 30,
For the Nine Months
EndedSeptember 30,
2016 2015
$Change
%Change
2016 2015
$Change
%Change
(000’s except percentages)
Direct and Net WrittenPremiums
Reconciliation:
Direct written premiums $ 27,170 $ 24,570 $ 2,600
10.6 % $ 76,375 $ 67,226 $ 9,149 13.6 % Assumed written premiums (1
) 13 (14 ) (107.7 ) % 15 35 (20 ) (57.1 ) % Ceded written premiums
(9,937 ) (3,246 ) (6,691 ) 206.1 %
(27,543 ) (21,914 ) (5,629 ) 25.7 %
Net
written premiums 17,232 21,337 (4,105 ) (19.2 ) % 48,847 45,347
3,500 7.7 % Change in unearned premiums (1,586 )
(8,208 ) 6,622 (80.7 ) % (3,658 )
(10,966 ) 7,308 (66.6 ) %
Net premiums
earned $ 15,646 $ 13,129
$ 2,517 19.2 % $
45,189 $ 34,381 $
10,808 31.4 %
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
Nine Months Ended Nine Months Ended
September 30, 2016 September 30, 2015 September
30, 2016 September 30, 2015
Amount
Dilutedearningspercommonshare
Amount
Dilutedearningspercommonshare
Amount
Dilutedearningspercommonshare
Amount
Dilutedearningspercommonshare
(000’s except per commonshare amounts)
Net Operating Incomeand Diluted
Earningsper Common ShareReconciliation:
Net income $ 3,461 $
0.434 $ 2,346 $ 0.318
$ 6,844 $ 0.885 $
5,107 $ 0.693
Net realized (gain) loss oninvestments
(241 ) 40 (605 ) 106
Less tax effect on realizedgains
(82 ) 14 (206 ) 35
Net realized (gain) loss oninvestments,
net of taxes
(159 ) $ (0.020 ) 26 $ - (399 ) $
(0.052 ) 71 $ 0.009
Net operating
income $ 3,302 $ 0.414
$ 2,372 $ 0.318 $
6,445 $ 0.833 $
5,178 $ 0.702
Weighted average dilutedshares
outstanding
7,972,925 7,381,626 7,729,712
7,367,714
Operating Return onAverage
CommonEquity (Annualized)Reconciliation:
Net income $ 3,461 $
2,346 $ 6,844 $ 5,107 Average
common equity $ 55,230 $ 42,469 $ 50,973 $ 42,262
Return on averagecommon
equity(annualized)
25.1 % 22.1 % 17.9 %
16.1 %
Net realized (gain) loss oninvestments,
net of taxes
$ (159 ) $ 26 $ (399 ) $ 71
Average common equity
$ 55,230 $ 42,469 $ 50,973 $ 42,262
Effect of net realized(gain) loss on
investments,net of taxes, on return onaverage common
equity(annualized)
-1.2 % 0.2 % -1.0 % 0.2 %
Net operating income
$ 3,302 $ 2,372 $ 6,445
$ 5,178 Average common equity $ 55,230 $ 42,469 $
50,973 $ 42,262
Operating return onaverage
common equity(annualized)
23.9 % 22.3 % 16.9 %
16.3 %
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 cause our loss trends to vary significantly
between periods as a result of their incidence of occurrence 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. We also provide it to facilitate a
comparison to our outlook on the net combined ratio excluding the
effect of catastrophes. 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
EndedSeptember 30,
For the Nine Months
EndedSeptember 30,
2016 2015
PercentagePointChange
2016 2015
PercentagePointChange
Net Combined Ratio Excluding
theEffect of Catastrophes Reconciliation:
Net combined ratio excluding
theeffect of catastrophes
67.4 % 72.2 % (4.8 )
pts 75.9 % 69.2 % 6.7
pts Effect of catastrophe losses Net loss and
loss adjustment expenses 0.0 % 0.6 % (0.6 ) pts 3.1 % 6.1 % (3.0 )
pts Ceding commission revenue 0.0 % 0.0 % - pts 0.0 %
3.7 % (3.7 ) pts Total effect of catastrophe losses 0.0 % 0.6 %
(0.6 ) pts 3.1 % 9.8 % (6.7 ) pts
Net combined
ratio 67.4 % 72.8 % (5.4
) pts 79.0 % 79.0 %
0.0 pts
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, Texas and Rhode
Island. Kingstone offers property and casualty insurance products
to individuals and small businesses primarily in New York
State.
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 For the
Nine Months Ended September 30, September 30,
2016 2015
2016 2015 Gross
written premiums:(1) Personal lines $ 21,357,900 $ 19,145,024 $
58,496,825 $ 50,346,928 Commercial lines 3,111,308 3,075,096
9,916,605 9,376,315 Commercial auto(2) - (42,630 ) (5,023 ) 537,123
Livery physical damage 2,640,531 2,342,470 7,792,984 6,800,527
Other(3) 59,637 63,481 188,399
199,912 Total $ 27,169,376 $ 24,583,441
$ 76,389,790 $ 67,260,805 Net written
premiums:(1) Personal lines Excluding the effect of quota share
adjustments on July 1 $ 11,893,952 $ 10,271,498 $ 32,111,287 $
23,443,844 Return of premiums previously ceded to prior quota share
treaties - 5,866,300 -
5,866,300 Personal lines 11,893,952 16,137,798
32,111,287 29,310,144 Commercial lines 2,760,623 2,833,838
8,919,387 8,592,916 Commercial auto(2) (105,596 ) (41,136 )
(110,311 ) 487,735 Livery physical damage 2,640,531 2,342,470
7,792,984 6,800,527 Other(3) 42,770 64,599
133,490 155,875 Total $
17,232,280 $ 21,337,569 $ 48,846,837 $
45,347,197 Net premiums earned: Personal lines $
10,388,403 $ 8,171,882 $ 29,678,863 $ 20,371,281 Commercial lines
2,828,473 2,616,290 8,282,020 7,481,031 Commercial auto(2) (105,596
) 333,338 (10,567 ) 1,517,246 Livery physical damage 2,487,975
1,962,121 7,106,718 4,882,588 Other(3) 46,926
45,973 131,697 128,972 Total $
15,646,181 $ 13,129,604 $ 45,188,731 $
34,381,118 Net loss and loss adjustment expenses:
Personal lines $ 2,383,297 $ 2,705,526 $ 13,069,461 $ 8,857,444
Commercial lines 1,178,963 1,339,960 3,271,253 4,638,848 Commercial
auto(2) (196,547 ) 8,122 (653,465 ) 585,658 Livery physical damage
1,236,780 666,838 3,171,434 1,796,867 Other(3) 50,615 1,821 222,596
113,621 Unallocated loss adjustment expenses 481,746
327,927 1,324,266 891,786
Total $ 5,134,854 $ 5,050,194 $ 20,405,545 $
16,884,224 Net loss ratio: Personal lines 22.9 % 33.1
% 44.0 % 43.5 % Commercial lines 41.7 % 51.2 % 39.5 % 62.0 %
Commercial auto(2) na na na na Livery physical damage 49.7 % 34.0 %
44.6 % 36.8 % Other(3) 107.9 % 4.0 % 169.0 % 88.1 % Total 32.8 %
38.5 % 45.2 % 49.1 %
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” above.
2. Effective October 1, 2014, we decided to no longer accept
applications for new commercial auto coverage. In February 2015, we
decided to no longer offer renewals to our existing commercial auto
policies beginning with those that expired on or after May 1,
2015.
3. “Other” includes, among other things, premiums and loss and
loss adjustment expenses from our participation in a mandatory
state joint underwriting association.
KINGSTONE COMPANIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income and
Comprehensive Income (Unaudited)
For the Three Months Ended For the Nine Months
Ended September 30, September 30, 2016
2015 2016 2015
Revenues Net premiums earned $ 15,646,181 $ 13,129,604
$
45,188,731
$
34,381,118
Ceding commission revenue 2,934,928 2,643,531 8,274,290 9,388,457
Net investment income 709,072 649,441 2,286,199 1,850,069 Net
realized gains (losses) on investments 241,035 (40,487 ) 604,903
(105,718 ) Other income 297,181 275,280
831,036 1,299,511 Total
revenues 19,828,397 16,657,369
57,185,159 46,813,437
Expenses Loss and loss adjustment expenses 5,134,854
5,050,194 20,405,545 16,884,224 Commission expense 4,603,755
4,021,383 13,400,029 11,033,874 Other underwriting expenses
4,039,209 3,389,024 10,981,784 9,349,842 Other operating expenses
530,261 468,352 1,292,196 1,174,693 Depreciation and amortization
262,387 267,424 835,388
749,658 Total expenses
14,570,466 13,196,377 46,914,942
39,192,291 Income from
operations before taxes 5,257,931 3,460,992 10,270,217 7,621,146
Income tax expense 1,797,305 1,115,338
3,426,298 2,513,811
Net income 3,460,626 2,345,654
6,843,919 5,107,335
Other
comprehensive income (loss), net of tax Gross change in
unrealized gains (losses) on available-for-sale-securities 60,391
(92,097 ) 2,418,305 (699,619 ) Reclassification adjustment
for (gains) losses included in net income (241,035 )
40,487 (604,903 ) 105,718 Net change in
unrealized gains (losses) (180,644 ) (51,610 ) 1,813,402 (593,901 )
Income tax (expense) benefit related to items of other
comprehensive income (loss) 61,419 17,547
(616,557 ) 201,926
Other
comprehensive income (loss), net of tax (119,225 )
(34,063 ) 1,196,845 (391,975 )
Comprehensive income $ 3,341,401 $ 2,311,591 $
8,040,764 $ 4,715,360
Earnings per common
share: Basic $ 0.44 $ 0.32 $ 0.89 $ 0.70
Diluted $ 0.43 $ 0.32 $ 0.89 $ 0.69
Weighted average common shares outstanding
Basic 7,911,353 7,334,269
7,676,887 7,330,178 Diluted 7,972,925
7,381,626 7,729,712
7,367,714
Dividends declared and paid per common
share $ 0.0625 $ 0.0500 $ 0.1875 $ 0.1500
KINGSTONE COMPANIES, INC. AND
SUBSIDIARIES
Condensed Consolidated Balance Sheets
September 30,
December 31, 2016
2015 (unaudited)
Assets Fixed-maturity
securities, held-to-maturity, at amortized cost (fair value of
$5,482,735 at September 30, 2016 and $5,241,095 at December 31,
2015) $ 5,094,455 $ 5,138,872 Fixed-maturity securities,
available-for-sale, at fair value (amortized cost of $78,917,448 at
September 30, 2016 and $62,221,129 at December 31, 2015) 81,078,953
62,502,064 Equity securities, available-for-sale, at fair value
(cost of $9,978,137 at September 30, 2016 and $8,751,537 at
December 31, 2015) 10,363,702
9,204,270 Total investments 96,537,110
76,845,206 Cash and cash equivalents 12,430,687 13,551,372 Premiums
receivable, net 11,516,429 10,621,655 Reinsurance receivables, net
31,212,976 31,270,235 Deferred policy acquisition costs 12,032,407
10,835,306 Intangible assets, net 1,435,000 1,757,816 Property and
equipment, net 3,161,227 3,152,266 Other assets 1,153,951
1,095,894
Total
assets
$
169,479,787
$
149,129,750
Liabilities Loss and loss adjustment
expense reserves $ 39,802,323 $ 39,876,500 Unearned premiums
53,763,848 48,890,241 Advance premiums 2,046,281 1,199,376
Reinsurance balances payable 3,996,426 1,688,922 Deferred ceding
commission revenue 6,652,854 6,435,068 Accounts payable, accrued
expenses and other liabilities 4,893,246 4,826,603 Income taxes
payable 540,686 263,622 Deferred income taxes 1,115,912
672,190
Total
liabilities 112,811,576
103,852,522
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
8,887,344 shares at September 30, 2016 and 8,289,606 at December
31, 2015; outstanding 7,912,875 shares at September 30, 2016 and
7,328,637 shares at December 31, 2015 88,873 82,896 Capital in
excess of par 37,891,275 32,987,082 Accumulated other comprehensive
income 1,681,065 484,220 Retained earnings 19,002,460
13,605,225 58,663,673
47,159,423 Treasury stock, at cost, 974,469 shares at September 30,
2016 and 960,969 shares at December 31, 2015 (1,995,462 )
(1,882,195
)
Total stockholders' equity 56,668,211
45,277,228
Total
liabilities and stockholders' equity
$
169,479,787
$
149,129,750
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161110005467/en/
Kingstone Companies, Inc.Amanda M. Goldstein, (516)
960-1319Investor Relations Director
Kingstone Companies (NASDAQ:KINS)
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