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 Companies Announces Third Quarter Results

Kingstone Companies, Inc. (NASDAQ: KINS) reported its results for the period ended September 30, 2011. Third quarter 2011 net income was $219,569, or $.06 per share, and net operating income 1 was $89,830, or $.02 per share.

The Company also announced that its board declared a quarterly dividend of $.03 per share payable on December 15, 2011 to shareholders of record at the close of business on November 30, 2011.

Operating Highlights

  • Direct premiums written and net premiums written in the third quarter were up by 24.0% and 26.8%, respectively, over the same quarter of 2010. Year to date amounts were up 22.2% and 18.8%, respectively, over the nine months ended September 30, 2010.
  • Net premiums earned were up 28.5% over the same quarter of 2010. Year to date amount was up 36.9%
  • Q3 net loss ratio exclusive of catastrophes was 63.8% as compared to 62.2% in Q3 2010. Net catastrophe loss caused by Tropical Storm Irene added 10.7% to net loss ratio to a total of 74.5% in the third quarter.

Financial Highlights

               
For the Three Months Ended September 30, For the Nine Months Ended September 30,
2011 2010 $ Change % Change 2011 2010 $ Change % Change
(000's except per share amounts and percentages)

Direct premiums written (1)

$ 10,383 $ 8,376 $ 2,007 24.0 % $ 30,503 $ 24,969 $ 5,534 22.2 %
Net premiums written (1) $ 4,267 $ 3,366 $ 901 26.8 % $ 12,410 $ 10,449 $ 1,961 18.8 %
Net premiums earned $ 3,937 $ 3,065 $ 872 28.5 % $ 10,822 $ 7,905 $ 2,917 36.9 %

Ceding commission revenue

$ 2,308 $ 2,232 $ 76 3.4 % $ 7,348 $ 6,414 $ 934 14.6 %
Net investment income $ 172 $ 155 $ 17 11.0 % $ 510 $ 436 $ 74 17.0 %
Interest expense $ 24 $ 47 $ (23 ) (48.9 ) % $ 108 $ 139 $ (31 ) (22.3 ) %
Net income $ 220 $ 232 $ (12 ) (5.2 ) % $ 1,120 $ 823 $ 297 36.1 %

Net income per diluted share

$ 0.06 $ 0.06 $ 0 .00 0.2 % $ 0.29 $ 0.25 $ 0.04 15.0 %
Comprehensive income $ 109 $ 578 $ (469 ) (81.1 ) % $ 1,230 $ 1,193 $ 37 3.1 %
Net operating income (1) $ 89 $ 177 $ (88 ) (49.7 ) % $ 884 $ 672 $ 212 31.5 %
Operating income per diluted share (1) $ 0.02 $ 0.05 $ (0.03 ) (60.0 ) % $ 0.23 $ 0.20 $ 0.03 15.0 %
               
1

These measures are not based on GAAP and are defined and reconciled to the most directly comparable GAAP measures in “Information Regarding Non-GAAP Measures.”

Management Commentary

Barry Goldstein, Kingstone’s Chairman and CEO, stated, “Our premium growth continued in the third quarter. Direct written premiums were up 24% over the prior year to $10.4 million. We reduced the quota share ceding percentage on commercial lines policies at the beginning of Q3. Thus, we are retaining a larger portion of the commercial writings effective July 1 st. This results in a further increase to net written premiums, which were up 26.8% for the quarter. In spite of the August storms which brought with them a record number of claims, we earned a net of $220,000 or $.06 per share for the quarter, down only $12,000 from the non-catastrophe impacted third quarter of 2010 when we earned $232,000 or $.06 per share.”

Victor Brodsky, Kingstone CFO, added, “The third quarter was highlighted by the effects of August rainstorms, and Tropical Storm Irene in particular. Due to the structure of our reinsurance program, the losses incurred by Tropical Storm Irene are reflected by an increase to our net loss ratio and a decrease to our ceding commission revenue. While our net loss and loss adjustment expense from this catastrophe of $422,000 added 10.7% to our net loss ratio, there was a reduction of ceding commission revenue of $493,000. Ceding commission revenue was up by 3.4% over Q3 2010 inclusive of the effect of Tropical Storm Irene. Our second quarterly dividend was declared at the rate of $.03 per share and will be paid to holders of record at November 30 th on December 15, 2011.”

Information Regarding Non-GAAP Measures

Direct premiums written - represents the total premiums charged on policies issued by the Company during the fiscal period in question.

Net premiums written - represents direct premiums written less premiums ceded to reinsurers.

               
For the Three Months Ended September 30, For the Nine Months Ended September 30,
2011 2010 $ Change % Change 2011 2010 $ Change % Change
(000’s)
Direct and Net Premiums Written Reconciliation:
Direct premiums written $ 10,383 $ 8,376 $ 2,007 24.0 % $ 30,503 $ 24,969 $ 5,534 22.2 %
Assumed written premiums 3 6 (3 ) (50.0 ) % 6 9 (3 ) (33.3 ) %
Ceded written premiums   (6,119 )   (5,016 )   (1,103 ) 22.0 %   (18,099 )   (14,529 )   (3,570 ) 24.6 %
Net written premiums 4,267 3,366 901 26.8 % 12,410 10,449 1,961 18.8 %

Change in unearned premiums

  (330 )   (301 )   (29 ) 9.6 %   (1,588 )   (2,544 )   956   (37.6 ) %
 
Net premiums earned $ 3,937   $ 3,065   $ 872   28.5 % $ 10,822   $ 7,905   $ 2,917   36.9 %
 

Net operating income - is net income exclusive of realized investment gains, net of tax. Net income is the GAAP measure most closely comparable to operating income. Management uses net operating income, along with other measures, to gauge the Company’s performance and evaluate results, which can be skewed when including realized investment gains, which may vary significantly between periods. Net operating income is provided as supplemental information, is not a substitute for net income and does not reflect the Company’s overall profitability.

   
For the Three Months Ended September 30, For the Nine Months Ended September 30,
2011   2010   $ Change   % Change 2011   2010   $ Change   % Change
(000’s)
Net Operating Income Reconciliation:
Net income $ 220 $ 232 $ (12 ) (5.2 ) % $ 1,120 $ 823 $ 297 36.1 %
 
Net realized gain on investments 197 84 113 134.5 % 357 229 128 55.9 %
Less tax effect on realized gains   66   29   37   127.6 %   121   78   43 55.1 %
Net realized gain on investments, net of taxes   131   55   76   138.2 %   236   151   85 56.3 %
 
Net operating income $ 89 $ 177 $ (88 ) (49.7 ) % $ 884 $ 672 $ 212 31.5 %
 

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!
DOW 16,552.10 -11.20 -0.07%
S&P 500 1,930.71 +0.04 0.00%
NASDAQ 4,362.1590 -7.6140 -0.17%

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