Kingstone Companies, Inc. (KINS) has reported an 171.81 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $1.47 million, or $0.15 a share in the quarter, compared with $0.54 million, or $0.07 a share for the same period last year.
Revenue during the quarter grew 11.94 percent to $20.65 million from $18.44 million in the previous year period. Net premium earned for the quarter increased 12.65 percent or $1.84 million to $16.37 million.
Total expenses move up marginally
Benefits, losses and expenses for the quarter were at $18.47 million, or 112.82 percent of premium earned from $17.71 million or 121.90 percent of premium earned in the last year period. Operating income for the quarter was $2.18 million, compared with $0.73 million in the previous year period. Net investment income was at $0.86 million for the quarter, up 5.50 percent or $0.04 million from year-ago period. Meanwhile, income from fees and commission for the quarter increased by 14.95 percent or $0.41 million to $3.18 million. The company has booked a loss on investments of $0.05 million in the quarter compared with a gain of $0.08 million for the previous year period.
Kingstone’s chairman and chief executive officer, Barry Goldstein, commented "There are three things I would like to point out. First, we successfully completed our second follow-on offering in February, delivering the Company an additional $30 million in capital. Second, following the equity raise, we negotiated, with the assistance of Aon Benfield, a new two year Personal Lines Quota Share treaty extending our already twelve year relationship with our quota share reinsurers, Maiden Re and Swiss Re. With the contribution of $23,000,000 to our subsidiary, Kingstone Insurance Company (“KICO”), we were thrilled to be able to reduce the percentage ceded by half-from 40% to 20%. Third, with those two items in place, A.M. Best upgraded KICO’s Financial Strength Rating to “A- Excellent." This took place on the 131st anniversary of the founding of KICO. A collaboration between lawyers, CPAs, bankers, analysts and many others with so many different skills resulted in our achieving a status in the marketplace sought by us since the demutualization of 2009. I thank all of those involved and look forward to the enhanced and increased opportunities that await us as an A-rated carrier."
Assets outpace liabilities growth
Total assets increased 28.59 percent or $45.07 million to $202.69 million on Mar. 31, 2017. On the other hand, total liabilities were at $114.59 million as on Mar. 31, 2017, up 2.86 percent or $3.19 million from year-ago. Return on assets stood at 0.73 percent in the quarter, up 0.38 from 0.34 percent in the last year period. At the same time, return on equity was at 1.67 percent in the quarter, up 0.50 from 1.17 percent in the last year period.
Investments increase substantially
Investments stood at $115.69 million as on Mar. 31, 2017, up 30.87 percent or $27.29 million from year-ago. Meanwhile, yield on investments went down 18 basis points to 0.74 percent in the quarter. Meanwhile, reinsurance recoverables moved down 6.50 percent or $2.33 million over the year to $33.50 million on Mar. 31, 2017.
Shareholders equity stood at $88.10 million as on Mar. 31, 2017, up 90.59 percent or $41.88 million from year-ago.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
