Kingstone Announces 2019 First Quarter Catastrophe Losses and Reorganization of Claims Department

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    KINGSTON, N.Y.–(BUSINESS WIRE)–lt;a href=”https://twitter.com/hashtag/dividend?src=hash” target=”_blank”gt;#dividendlt;/agt;–Kingstone Companies, Inc. (Nasdaq:KINS) (the “Company” or “Kingstone”),
    a multi-line regional property and casualty insurance holding company,
    and parent of Kingstone Insurance Company (“KICO”) today makes two
    announcements:

    Catastrophe Losses in Q1-KICO
    estimates ultimate net losses from multiple winter catastrophe events of
    approximately $5 million pre-tax, resulting in a 17 point impact on the
    quarterly combined ratio. No catastrophe reinsurance recovery is
    expected as no single event reached the KICO retention of $5 million.
    The catastrophe events are estimated to have a $0.37 after-tax impact on
    net income per share for the quarter. Relative to the prior year, net
    losses from winter cat events are higher than those recorded in 2018 due
    to the reduction in the quota share rate from 20% to 10% in July 2018.

    Claims Department Reorganization-“Following
    multiple quarters of disappointing results from our Claims Department,
    KICO engaged a consultant to do a comprehensive review of our claims
    operations,” said Dale Thatcher, Kingstone CEO. “The final report
    concluded that there was much room for improvement in claims handling
    through adopting and implementing a number of industry best practices
    including the need to acquire more skilled and experienced staff. The
    process began with our hiring of a former colleague of mine, Bill
    O’Brien, as our new Chief Claims Officer as announced earlier this
    month. The result of the review gives rise for the need to strengthen
    our claims case reserves by approximately $2.5 million and our IBNR
    reserves by an additional $2.5 million for a total reserve charge of
    $5.0 million. The overall impact of this reserve strengthening is 17
    points on the quarterly combined ratio. Although this will reduce our
    quarterly earnings and book value per share by approximately $0.37, it
    will substantially strengthen our balance sheet and position us well for
    the future.”

    Updated Guidance

    As a result of the two charges noted above, Kingstone now expects to end
    the full year with a combined ratio excluding catastrophe losses of 88%
    to 91% and catastrophe losses of 4 to 5 points.

    About Kingstone Companies, Inc.

    Kingstone is a northeast regional property and casualty insurance
    holding company whose principal operating subsidiary is Kingstone
    Insurance Company (“KICO”). KICO is a multi-line carrier writing
    business through retail and wholesale agents and brokers. KICO offers
    primarily personal lines insurance products to individuals as well as
    various small business coverages. Actively writing in New York, New
    Jersey, Rhode Island, Massachusetts, Connecticut and Pennsylvania,
    Kingstone is also licensed (but not yet active) in New Hampshire and
    Maine.

    Forward-Looking Statement

    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. For more details on factors that could affect expectations, see
    Part II, Item 7 of our Annual Report on Form 10-K for the year ended
    December 31, 2018 under “Factors That May Affect Future Results and
    Financial Condition.” Kingstone undertakes no obligation to publicly
    update or revise any forward-looking statements, whether as a result of
    new information, future events or otherwise, except as required by law.

    Contacts

    Investor Relations:
    Amanda M. Goldstein
    Investor Relations
    Director
    (516) 960-1319