HEWLETT, N.Y.--([ BUSINESS WIRE ])--Kingstone Companies, Inc. (NASDAQ: KINS) released its results for the period ended March 31, 2011.
"Our written premium and earned premium amounts showed increases of 24% and 52%, respectively, as compared to the first quarter of 2010. We are especially excited about our growth in small commercial liability insurance which has quickly become our third most popular line of business, following homeowner and commercial auto."
Barry Goldstein, Kingstonea™s Chairman and CEO, said aDespite a very long and difficult winter, and some underwriting challenges, we managed to show an operating profit. Book value per share at March 31st was $3.42.a
aKingstone Insurance Company (aKICOa) drove our positive results,a said Mr. Goldstein. aOur written premium and earned premium amounts showed increases of 24% and 52%, respectively, as compared to the first quarter of 2010. We are especially excited about our growth in small commercial liability insurance which has quickly become our third most popular line of business, following homeowner and commercial auto.a
Mr. Goldstein continued, aKICOa™s homeowner and small business commercial liability lines are subject to quota share reinsurance, where our reinsurers share in the premiums and losses attributable to these lines of business. This allows us to grow the business in a reasonably conservative manner, while not putting undue stress on our capital. These lines continue to show excellent metrics, of which we are quite proud.a
Mr. Goldstein concluded, aOur income this quarter was weighed down by deteriorating results in our commercial auto business, which for the most part, is not subject to quota share reinsurance. We believe we have identified the causes and have taken a number of remedial measures to correct the problem. We are confident that results will soon return to our historic norms.a
Victor Brodsky, Chief Financial Officer, commented aWea™ve worked hard at reducing costs attributable to the parent company. Since this time last year, we retired all of our preferred stock via an exchange for common stock. Wea™ve cut costs when and where we could. Our Board has agreed to redeem 40% of the principal amount of our outstanding promissory notes on June 1st and we are working on a financing plan to reduce the costs associated with the remainder.a
Selected data
Item | March 31, 2011 | March 31, 2010 | ||||||
| (In thousands except | (In thousands except | |||||||
| per share data) | per share data) | |||||||
| Total Revenues | $6,176 | $4,817 | ||||||
Total Operating Expenses (other than Depreciation and Amortization and Interest Expense) | $5,803 | $4,215 | ||||||
| Depreciation and Amortization | $158 | $157 | ||||||
| Interest Expense | $46 | $83 | ||||||
| Provision for Tax | $42 | $145 | ||||||
| Income from Continuing Operations | $127 | $219 | ||||||
| Income from Discontinued Operations, net of tax | $0 | $14 | ||||||
| Net Income | $127 | $232 | ||||||
| Unrealized Investment Gains, net of tax | $21 | $26 | ||||||
| Comprehensive Income | $148 | $259 | ||||||
| Net Income Per Share | $0.03 | $0.08 | ||||||
| Book Value Per Share | $3.42 | $3.57 |
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.
