Q3 2024 Kingstone Companies Inc Earnings Call Transcript

Nov 13, 2024 / 01:30 PM GMT

Release Date Price: $11.92 (-0.25%)

Key Points

Positve

Kingstone Companies Inc (KINS) reported its fourth consecutive quarter of profitability with a net income of $7 million for Q3 2024.
Direct written premiums increased by 28.1% in the third quarter, driven by a 39.4% increase in core direct written premiums.
The company's combined ratio improved significantly by 38.2 points to 72% for the quarter.
Investment income for the quarter increased by 14% to $1.7 million, reflecting strategic shifts in the investment portfolio.
Kingstone Companies Inc (KINS) raised its guidance for 2024, expecting a GAAP combined ratio between 79% and 83% and earnings per share between $1.40 and $1.70.

Negative

The company is focused on paying off debt quickly, which may involve issuing additional stock, potentially leading to shareholder dilution.
There is an expected increase in catastrophe reinsurance costs for the 2025 treaty year due to exposure growth and a hardening market.
The expense ratio was higher than the target, primarily due to increased employee bonuses and contingent commissions.
Kingstone Companies Inc (KINS) is reducing its non-core business, which decreased by 60% in both written premium and policies in force.
The company faces uncertainty in the reinsurance market, which could impact future pricing and profitability.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

KINS.OQ - Kingstone Companies Inc
Q3 2024 Kingstone Companies Inc Earnings Call
Nov 13, 2024 / 01:30PM GMT

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Presentation
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Unidentified_1 [1]
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TriC and thoughtful manner.

It's incredibly important not to repeat the mistakes of the past and we're focused on paying off the debt as quickly as possible.

The balance of debt will be repaid partially with intercompany dividends and partially sorry about that through the additional sale of stock via the ATM given the need for statutory surplus to support our growth, we will be judicious in the use of our surplus so we can continue to grow at an accelerated pace. We also intend to reduce the amount of our quota share for 2025 to retain more of our premiums and profit which reduces surplus as well. We are in the market now for next year's quota share and the amount of the quota share will largely be determined

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