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Kingstone Records Net Income in Q1 Insurance Company Operations Drive Results

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  Published in Business and Finance on Tuesday, May 18th 2010 at 12:10 GMT by Market Wire
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HEWLETT, N.Y.--([ BUSINESS WIRE ])--Kingstone Companies, Inc. (NASDAQ: KINS) released its results for the period ended March 31, 2010.

"We need to reduce our debt service burden and will seek to reduce or eliminate the liabilities attributable to our mandatorily redeemable preferred stock and promissory notes, including through the possible conversion of such liabilities to equity."

Barry Goldstein, Kingstonea™s Chairman and CEO, said aOperating income swung to a profit of $363,110 from a loss of ($274,079) in Q1 2009. We reported net income for the quarter of $232,394 as opposed to a loss in the 2009 period of ($171,514).a

aKingstone Insurance Company (aKICOa) drove our positive results,a said Mr. Goldstein. aKICO suffered pre-tax losses from the March storms of approximately $250,000, which added over 11.3 percentage points to our net loss ratio. The resulting loss ratio of 64.7% is well above our full year 2010 estimate of 51.6%, which remains unchanged. KICOa™s quarterly results reflect positive development on quota share reinsurance ceding commissions from prior periods. This benefit is included as an offset to our underwriting expense ratio. Our net combined ratio for the quarter was 62.6%. Book value per KINS share was $3.57 at March 31, 2010 up from $3.47 at year end 2009. At March 31, 2009 our book value per share was $1.71.

aWhile KICO continues its profitable growth path, we recognize that the costs attributable to the parent company must be rationalized,a Mr. Goldstein continued. aWe need to reduce our debt service burden and will seek to reduce or eliminate the liabilities attributable to our mandatorily redeemable preferred stock and promissory notes, including through the possible conversion of such liabilities to equity.a

Forward Looking Statements

Statements in this press release may contain aforward-looking statementsa 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 managementa™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 Kingstonea™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.