Kingstone Companies, Inc. (NASDAQ: KINS) released its results for the period ended March 31, 2011.
Barry Goldstein, Kingstone’s Chairman and CEO, said “Despite a very long and difficult winter, and some underwriting challenges, we managed to show an operating profit. Book value per share at March 31 st was $3.42.”
“Kingstone Insurance Company (“KICO”) drove our positive results,” said Mr. Goldstein. “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.”
Mr. Goldstein continued, “KICO’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.”Mr. Goldstein concluded, “Our 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.” Victor Brodsky, Chief Financial Officer, commented “We’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. We’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 1 st and we are working on a financing plan to reduce the costs associated with the remainder.” Selected data
|Item||March 31, 2011||March 31, 2010|
|(In thousands except||(In thousands except|
|per share data)||per share data)|
|Total Operating Expenses (other than Depreciation and Amortization and Interest Expense)||$5,803||$4,215|
|Depreciation and Amortization||$158||$157|
|Provision for Tax||$42||$145|
|Income from Continuing Operations||$127||$219|
|Income from Discontinued Operations, net of tax||$0||$14|
|Unrealized Investment Gains, net of tax||$21||$26|
|Net Income Per Share||$0.03||$0.08|
|Book Value Per Share||$3.42||$3.57|
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