Business & Finance
Business and Finance
Business and Finance
Wed, August 18, 2010
Tue, August 17, 2010 Kingstone Reports Second Quarter Results Direct Written Premiums up 24% Year to Date
HEWLETT, N.Y.--([ BUSINESS WIRE ])--Kingstone Companies, Inc. (NASDAQ: KINS) today released its results for the period ended June 30, 2010.
"Our results are driven by Kingstone Insurance Company (aKICO"
Net income for the second quarter was $358,319, up 54% from Q1 of $232,394. Operating income was $639,865, up 76% from Q1 of $363,110. Earnings per share were $0.11 for the quarter and $0.20 for the six months period.
Barry Goldstein, KINS Chairman and CEO, commented, aOur results are driven by Kingstone Insurance Company (aKICOa), which we acquired on July 1, 2009. KICO writes business in New York State, exclusively through the independent producer channel. It is with this select group of producers that we continue to build our business.a
For the six months ended June 30th, the following table depicts the premium volumes at KICO.
| Item | Six Months Ended | Six Months Ended | Percentage Change | |||||||||
| Direct Premiums Written | $ | 16,593,343 | $ | 13,382,539 | +24.0 | % | ||||||
| Add: Premiums Assumed | $ | 3,136 | $ | 2,904 | + 8.0 | % | ||||||
| Less: Premiums Ceded to Reinsurers | ($9,513,527 | ) | ($8,922,250 | ) | + 6.6 | % | ||||||
| Net Written Premiums | $ | 7,082,952 | $ | 4,463,193 | +58.7 | % | ||||||
Significant Events during Q2:
- KICO is now rated aBa by A.M. Best Company a" During May, we received our initial rating, and we will work towards improving our rating to a higher level in the years to come. We note that on August 3rd Demotech, another national financial analysis firm, affirmed that our Financial Stability Rating continues as aA-Exceptional.a
- 11.5% Mandatorily redeemable preferred stock exchanged for common stock a" Reducing debt at the parent level has been a goal of our Board. While the exchange in June 2010 was a year earlier than originally scheduled, the KINS Board felt that reducing our debt service obligations as soon as possible was in the long term best interests of our Company.
- KICO files application to do business in Pennsylvania a" We recently filed our application and are hopeful of receiving permission to begin writing policies in late 2010 or early 2011. This will allow KICO to spread its underwriting skills outside of New York and allow for our continued growth.
Kingstone Insurance Company
Victor Brodsky, the Companya™s Chief Financial Officer, noted, aThe results of KICO were not included in the consolidated financial statements of KINS before July 1, 2009. In order to make an accurate comparison to the prior year, the following table compares KICOa™s standalone amounts for the six months ended June 30, 2010 to KICOa™s standalone amounts for the six months ended June 30, 2009.a
KINGSTONE | Six Months Ended | Six Months Ended | Percentage | |||||||
| Revenues | ||||||||||
| Net Premiums Earned | $ | 4,840 | $ | 4,489 | +7.8 | % | ||||
| Ceding Commission Revenue | $ | 4,182 | $ | 4,157 | +0.6 | % | ||||
| Net Investment Income | $ | 281 | $ | 164 | +71.3 | % | ||||
| Net realized gains (losses) on investments | $ | 145 | $ | ( 124 | ) | N/A | ||||
| Other Income | $ | 162 | $ | 189 | -14.3 | % | ||||
| Total Revenues | $ | 9,610 | $ | 8,875 | + 8.3 | % | ||||
| Expenses | ||||||||||
| Loss and loss adjustment expenses | $ | 2,610 | $ | 2,875 | - 9.2 | % | ||||
| Commission expense | $ | 2,360 | $ | 2,124 | +11.1 | % | ||||
| Other underwriting expenses | $ | 2,532 | $ | 2,352 | + 7.6 | % | ||||
| Depreciation and Amortization | $ | 307 | $ | 117 | +162.4 | % | ||||
| Interest expense | $ | $ | 72 | -100.0 | % | |||||
| Total Expenses | $ | 7,809 | $ | 7,540 | + 3.6 | % | ||||
| Income before taxes | $ | 1,801 | $ | 1,336 | + 34.8 | % | ||||
| Income tax expense | $ | 610 | $ | 438 | + 39.3 | % | ||||
| Net Income | $ | 1,191 | $ | 898 | + 32.6 | % | ||||
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.
