This Day On The Street
Continue to site
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

A.M. Best Revises Outlook To Positive For Kingstone Insurance Company And Kingstone Companies Inc.

A.M. Best has revised the outlook to positive from stable and affirmed the financial strength rating of B+ (Good) and the issuer credit rating (ICR) of “bbb-” of Kingstone Insurance Company (Kingstone) and the ICR of “bb-” of the publicly traded holding company of Kingstone, Kingstone Companies, Inc. [NASDAQ: KINS]. Both companies are headquartered in Kingston, NY.

The revised outlook reflects Kingstone’s recently improved risk-adjusted capitalization and continued favorable operating earnings, which have enabled it to consistently grow its policyholders’ surplus. Kingstone’s risk-adjusted capitalization significantly improved at year-end 2013, driven by a $15.0 million capital contribution from its parent, following an $18.8 million public offering on December 13, 2013. The capital raised in this public offering also enabled management to repay all of its outstanding debt at Kingstone Companies Inc.

The ratings reflect Kingstone’s strong risk-adjusted capitalization, favorable five-year operating performance and local market knowledge in its predominant operating territory of New York State. The company’s favorable operating performance is reflected in its double-digit five-year pre-tax returns on revenue and equity, generated by positive net underwriting income and supplemented by net investment and other income. Kingstone’s policyholders’ surplus growth has been solid over the last five years, increasing at a double-digit average annual rate. Additionally, the ICR for Kingstone Companies, Inc. acknowledges the standard notching off of the ICR for the operating company.

Partially offsetting Kingstone’s positive rating factors are its dependence on reinsurance and its concentration of risk, primarily in downstate New York, which exposes it to weather-related events as well as to market, regulatory and judicial issues. Kingstone also has reported adverse loss reserve development in recent calendar and accident years, driven in part by historical lead paint claims. Furthermore, Kingstone is projecting substantial growth in net premiums written in 2014, driven by increased retention on its quota share reinsurance contracts and new policy growth. However, Kingstone’s increased capital position should comfortably support management’s growth plans.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs