Kingstone Companies, Inc (KINS) has reported 10.99 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $2.06 million, or $0.26 a share in the quarter, compared with $1.85 million, or $0.25 a share for the same period last year. Revenue during the quarter grew 16.64 percent to $20.25 million from $17.36 million in the previous year period. Net premium earned for the quarter increased 13.97 percent or $1.99 million to $16.22 million.
Total expenses move up
Benefits, losses and expenses for the quarter were at $17.10 million, or 105.45 percent of premium earned from $14.67 million or 103.12 percent of premium earned in the last year period. Operating income for the quarter was $3.15 million, compared with $2.69 million in the previous year period. Net investment income was at $0.83 million for the quarter, up 16.19 percent or $0.12 million from year-ago period. Meanwhile, income from fees and commission for the quarter jumped 43.62 percent or $0.91 million to $2.99 million. The company has booked a loss on investments of $0.08 million in the quarter compared with a gain of $0.06 million for the previous year period.
Kingstone’s Chairman and Chief executive officer, Barry Goldstein, commented about the fourth quarter and full year results “There are many things that I can point to as I look back at our fourth quarter results. Without the benefit of a change to our quota share treaty, and in spite of a 3.6 percentage point increase to our effective tax rate to 34.7%, net operating income1 was up by almost 16% while net premiums earned increased by 14%. Our combined ratio during Q4 was 2.6 percentage points below the comparable 2015 period. This accounts in part for an increase in ceding commission income of 43.6%.
Assets outpace liabilities growth
Total assets increased 13.62 percent or $20.32 million to $169.45 million on Dec. 31, 2016. On the other hand, total liabilities were at $112.77 million as on Dec. 31, 2016, up 8.58 percent or $8.91 million from year-ago. Return on assets stood at 1.21 percent in the quarter, down 0.03 from 1.24 percent in the last year period. At the same time, return on equity was at 3.63 percent in the quarter, down 0.46 from 4.09 percent in the last year period.
Investments move up
Investments stood at $95.51 million as on Dec. 31, 2016, up 24.29 percent or $18.67 million from year-ago. Meanwhile, yield on investments went down 6 basis points to 0.87 percent in the quarter. Meanwhile, reinsurance recoverables moved up 2.97 percent or $0.93 million over the year to $32.20 million on Dec. 31, 2016.
Shareholders equity stood at $56.68 million as on Dec. 31, 2016, up 25.19 percent or $11.40 million from year-ago.
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