This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Kingstone Records Net Income In Q1 Insurance Company Operations Drive Results

Kingstone Companies, Inc. (NASDAQ: KINS) released its results for the period ended March 31, 2010.

Barry Goldstein, Kingstone’s Chairman and CEO, said “Operating 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).”

“Kingstone Insurance Company (“KICO”) drove our positive results,” said Mr. Goldstein. “KICO 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. KICO’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.

“While KICO continues its profitable growth path, we recognize that the costs attributable to the parent company must be rationalized,” Mr. Goldstein continued. “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.”

Selected data

   
 

Item

March 31, 2010

March 31, 2009

(In thousands except (In thousands except
per share data) per share data)
 
Total Revenues $4,416 $112
Total Operating Expenses (other than

$3,813

$282

Depreciation and Amortization and Interest
Expense)

 

 

Depreciation and Amortization $157 $4
Interest Expense $83 $100
Interest Income – Note receivable - $30
Provision for (Benefit from) Tax $145 $(88)
Income (Loss) from Continuing Operations $219 $(156)
Income (Loss) from Discontinued Operations $14 $(16)
Net Income (Loss) $232 $(172)
Unrealized Investment Gains, net of tax $26 -
Comprehensive Income (Loss) $259 $(172)
Net Income (Loss) Per Share $0.08 $(0.06)
Book Value Per Share $3.57 $1.71

Forward Looking Statements

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.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs