Third Quarter 2017 Financial Results. May 13, First Quarter Conference Call

Similar documents
Fall 2018 Investor Briefing

Kingstone Companies, Inc. (Nasdaq: KINS) Presentation to New York Society of Security Analysts. Corporate Headquarters in Kingston, NY

Additional Financial Information for Q3 2018

KINGSTONE COMPANIES, INC.

Heritage Insurance Holdings, Inc. Reports Financial Results for Fourth Quarter and Full Year 2017

The Hartford Financial Services Group, Inc. November 2017 Overview of The Hartford

ServiceNow, Inc. Condensed Consolidated Statements of Operations (in thousands, except share and per share data) (Unaudited)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C FORM 10-Q

ServiceNow, Inc. Condensed Consolidated Statements of Operations (in thousands, except share and per share data) (unaudited)

The Hartford Financial Services Group, Inc. May 2017 Overview of The Hartford

Heritage Reports Fourth Quarter and Full-Year 2018 Results

ServiceNow, Inc. Condensed Consolidated Statements of Operations (in thousands, except share and per share data) (Unaudited)

ServiceNow, Inc. Condensed Consolidated Statements of Operations (in thousands, except share and per share data)

EMC INSURANCE GROUP INC. REPORTS RECORD 2006 THIRD QUARTER RESULTS

Exhibit In the third quarter of 2017:

ServiceNow, Inc. Condensed Consolidated Statements of Operations (in thousands, except share and per share data) (unaudited)

STATE OF THE LINE REPORT

2017 Intellisight Conference. August 22, 2017

$ % from 2015

GREENLIGHT RE ANNOUNCES THIRD QUARTER 2018 FINANCIAL RESULTS

Investor Presentation September 2016

SELECTIVE INSURANCE GROUP, INC.

Investor Presentation March 2018

Creating a Super Regional Personal Lines Carrier Acquisition of Narragansett Bay Insurance. August 2017

Selective Reports First Quarter 2017 Net Income per Diluted Share of $0.85 and Operating Income 1 per Diluted Share of $0.86

AmTrust Financial. KBW Insurance Conference. September 8, 2010

ServiceNow, Inc. Condensed Consolidated Statements of Operations (in thousands, except share and per share data) (unaudited)

The Hartford Reports Third Quarter 2017 Net Income Per Diluted Share Of $0.64 And Core Earnings Per Diluted Share* Of $0.60

Maiden Holdings, Ltd.

Heritage Insurance Holdings, Inc. Reports Financial Results for Third Quarter of 2018

ServiceNow, Inc. Condensed Consolidated Statements of Operations (in thousands, except share and per share data) (unaudited)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C FORM 10-Q

USA Truck Reports First Quarter 2018 Results

Corporate Presentation August 2013 NYSE:HCI

Investor Presentation June 2018

The Hartford Financial Services Group, Inc. October 23, 2017 The Hartford to Acquire Aetna s U. S. Group Life and Disability Business

OneSpan Reports Results for Second Quarter and First Six Months of 2018

Q Investor Presentation. November 2, 2018

National General Holdings Corp. Reports Fourth Quarter 2017 Results

Digital River, Inc. Second Quarter Results (Unaudited, in thousands) Subject to reclassification

CARS.COM. First Quarter 2018 Earnings May 9, 2018

First quarter 2015 net income per diluted share of $1.08 rose 5% from first quarter 2014

FINANCIAL SUPPLEMENT SECOND QUARTER Exhibit 99.2

Maiden Holdings, Ltd. Investor Presentation May & June 2014

Q4 AND FULL-YEAR 2017 INVESTOR PRESENTATION. February 23, 2018

Maiden Holdings, Ltd. Investor Presentation March 2014

The Hartford Financial Services Group, Inc. February 4, 2019

$ % From 2Q 2016

GAMCO Investors, Inc. Reports Fourth Quarter 2017 Results

Potential Impact of Proposed 2011 Standard Reinsurance Agreement

2018 Investor Meetings. May June

2016 AmTrust Financial Conference

OneSpan Reports Results for Third Quarter and First Nine Months of 2018; Reiterates Full Year Guidance

JMP Group Reports Third Quarter 2007 Financial Results

Hoops and Hurdles. The InsurTech Road to Market. Steve Walsh MAY 2018

The Hanover Insurance Group, Inc.

The Hartford Reports First Quarter 2017 Net Income And Core Earnings Per Diluted Share* Of $1.00

FINANCIAL SUPPLEMENT FIRST QUARTER Exhibit 99.2

EMC Insurance Group Inc. Reports 2017 Third Quarter and Nine Month Results

Q INVESTOR PRESENTATION. May 4, 2018

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS. (In millions, except share amounts) ASSETS:

Supplemental Investor Package. Fourth Quarter and Full Year 2014

2018 CFA Society New York Insurance Conference. March 20, 2018

Fourth Quarter 2018 Results

FINANCIAL RESULTS SUMMARY

Q Financial Supplement

DYNAGAS LNG PARTNERS LP REPORTS RESULTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2018

Allstate Executing Profitable Growth Plan Income benefited from lower accident frequency and catastrophe losses

SELECTIVE INSURANCE GROUP, INC.

Superstorm Sandy: Lessons Learned and the Changing Landscape of the Homeowners and Commercial Insurance Markets

The Hartford Financial Services Group, Inc. October 25, Third Quarter 2018 Financial Results

Fourth Quarter and Full Year Highlights

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C FORM 8-K CURRENT REPORT

FIRM CAPITAL AMERICAN REALTY PARTNERS CORP. CAPITAL PRESERVATION DISCIPLINED INVESTING MD&A MANAGEMENT DISCUSSION AND ANALYSIS

BankUnited, Inc. January 2019

Analog Devices Reports Second Quarter Fiscal Year 2014 Results

Cincinnati Financial Reports Second-Quarter 2018 Results

The Hartford Financial Services Group, Inc. May 2018 Investor Overview of The Hartford

AmTrust Financial Services, Inc. Reports Second Quarter 2013 Operating Earnings(1) of $60.4 Million and Net Income of $80.

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED Consolidating Statements of Operations (Unaudited, $ millions, except per share data)

The Hartford Financial Services Group, Inc. December 2017 Overview of The Hartford

Massachusetts Insured Catastrophe Loss Summary YTD. Insured Losses from Major Catastrophes Are on the Rise in Massachusetts

Synaptics Reports Record Results for Fiscal 2011

Allstate Reports 2003 First Quarter Net Income of $665 Million, 40% Increase in Operating Income EPS, Combined Ratio Improves 6 Points

Ameriprise Financial Fourth Quarter 2017 Conference Call

MARKEL REPORTS 2017 FINANCIAL RESULTS

The Hartford Financial Services Group, Inc. July 27, 2015 SECOND QUARTER 2015 FINANCIAL RESULTS PRESENTATION

KBW Insurance Conference

The Hartford Reports Fourth Quarter 2015 Core Earnings Of $1.07 Per Diluted Share And Net Income Of $1.01 Per Diluted Share

Allstate Reports Broad-Based Growth and Strong Profitability

Allstate Reports Lower First Quarter Income Due to Catastrophe Losses

HARTFORD FINANCIAL SERVICES GROUP INC/DE

ehealth, Inc Fall Cost Report for Individual and Family Policyholders

Atlas Financial Holdings Announces 2016 First Quarter Financial Results

Reconciliation of Non-GAAP Financial Measures. Adjusted Operating Income Reconciliation

Selective Insurance Group, Inc. Bank of America Merrill Lynch Insurance Conference. February 24, Forward Looking Statement

The Allstate Corporation. Definitions of GAAP Operating Ratios and Definitions and Reconciliations of Non-GAAP and Operating Measures

Transcat Reports Fiscal 2015 Second Quarter Record Revenue of $31.1 Million; Earnings per Diluted Share Up 20%

GAMCO Investors, Inc. Reports Second Quarter 2017 Results

2015 Third Quarter Earnings Call November 4, 2015 NYSE: WTR

Transcription:

Third Quarter 2017 Financial Results May 13, 2016 2016 First Quarter Conference Call Speakers Mr. Barry Goldstein, CEO Mr. Ben Walden, EVP & Chief Actuary Mr. Victor Brodsky, CFO Investor Relations Contact Ms. Amanda Goldstein

Forward Looking Statements This document contains forward-looking statements and management may make additional forward looking statements in response to your questions. Forward-looking statements include statements regarding the intent, belief or current expectations of the Company and its management about the Company s business, financial condition and results of operations, among other factors. In some cases you can identify these statements by forward-looking words such as may, might, will, will likely result, should, anticipates, expects, intends, plans, seeks, estimates, potential, continue, believes and similar expressions, although some forward-looking statements are expressed differently. These forward-looking statements are based on the Company s current expectations and assumptions that are subject to risks and uncertainties that may cause its actual results, performance, or achievements to differ materially from any expected future results, performance, or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. These risks and uncertainties include, but are not limited to the level of demand for the Company s coverage and the incidence of catastrophic events related to its coverage; the Company s ability to grow and remain profitable in the competitive insurance industry; its ability to access additional capital; its ability to attract and retain qualified personnel; changes in general economic, business and industry conditions; and legal, regulatory, and tax developments. There is no assurance that the Company s expectations will be realized. If one or more of these risks or uncertainties materialize, or if the Company s underlying assumptions prove incorrect, actual results may vary materially from those expected, estimated, or projected. Such risks and uncertainties also include those set forth under Risk Factors in the Registration Statement. The Company s forward-looking statements speak only as of the time that they are made and do not necessarily reflect the Company s outlook at any other point in time. Except as required by law or regulation, the Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or for any other reason. Also, the discussions during this conference call will include certain financial measures that were not prepared in accordance with U.S. generally accepted accounting principles (GAAP). Reconciliations of those non-u.s. GAAP financial measures to the most directly comparable U.S. GAAP financial measures can be found in the Company s press release dated November 9, 2017 that is posted on the Company s web site at http://www //www.kingstonecompanies kingstonecompanies.com/pressreleases com/pressreleases.asp asp. Any non-u.s. GAAP financial measures presented should not be viewed as substitutes for financial measures required by U.S. GAAP, have no standardized meaning prescribed by U.S. GAAP and may not be comparable to the calculation of similar measures of other companies. Ticker Cash & Investments Total Assets Total Stockholders Equity Book Value Per Common Share Shares Outstanding At September 30, 2017 (NASDAQ: KINS) Stock Price* $15.35 Market Cap* $163,115,271 Shares Outstanding 10,626,402 *As of November 9, 2017 At December 31, 2016 $155.7 million $107.6 million $215.4 million $169.4 million $93.8 million $56.7 million $8.83 $7.15 10,623,407 7,921,866 2

Recent Achievements Homeowner rates and forms approved in Rhode Island October 23 rd Tentatively approved to write business in Massachusetts October 23 rd Purchased adjoining property in Kingston for future expansion November 1 st New Kingstone Companies website launched November 2 nd 3

Impact of Upgraded A.M. Best Rating to A-(Excellent) Upgrade to A-Excellent on April 12, 2017, Third Quarter was first to fully reflect impact. Significant increase in personal lines new business within a few weeks of the announcement we are seeing much more activity from our existing agents. The dramatic change in conversion ratio (issued / quoted) accelerated in the Third Quarter. We observe this particularly for New York Homeowners where the A-rating sets us apart from Demotech-rated coastal competitors. We expect a positive impact in quoting and conversion in expansion states allowing us to quickly succeed in new coastal markets dominated by Demotechrated carriers. Many of these carriers are presently dealing with catastrophe events in other states. We have still not seen the full impact of growth from new agents and risks requiring an A-rated carrier. We expect additional opportunities to present themselves for higher-end risks as a result of the A- rating. 4

Third Quarter 2017 Investor Highlights Third Quarter 2017 Net income increased 17.7% to $4.07 million or $0.38 per diluted share Return on Average Common Equity (annualized) 17.7% Book value per share of $8.83, up 23.3% since Sep 30, 2016 Year to Date Net income increased 17.7% to $8.05 million or $0.77 per diluted share Return on Average Common Equity (annualized) 14.27% Dividends $.08 per share dividend payable on December 15, 2017 to shareholders of record at the close of business on November 30, 2017. Kingstone s 26 th consecutive quarterly dividend. 5

Underwriting Performance Net Loss and Loss Adjustment Expense For the Quarter Ended September 30, 2017 September 30, 2016 Personal Lines $ 3,553,087 $ 2,383,297 Commercial Lines 1,535,862 1,178,963 Livery Physical Damage 1,417,332 1,236,780 Other(1) 10,226 (145,932) Unallocated loss adjustment expenses 556,816 481,746 Total $ 7,073,323 $ 5,134,854 Net Loss Ratio For the Quarter Ended September 30, 2017 September 30, 2016 Personal Lines 23.1% 22.9% Commercial Lines 49.1% 41.7% Livery Physical Damage 48.2% 49.7% Other(1) 18.7% 248.7% Total 32.9% 32.8% (1) Other includes, among other things, premiums and loss and loss adjustment expenses from commercial auto and our participation in a mandatory state joint underwriting association. 6

Third Quarter 2017 Premiums by Line of Business Net Premiums Earned Third Quarter 2017 Percentage of Total Livery Physical Damage 14% Personal Lines 72% Commercial Lines 14% For the Quarter Ended September 30, 2017 September 30, 2016 Personal Lines $ 15,395,435 $ 10,388,403 Commercial Lines 3,125,137 2,828,473 Livery Physical Damage 2,939,032 2,487,975 Other(1) 54,804 (58,670) Total $ 21,514,408 $ 15,646,181 (1) Other includes, among other things, premiums and loss and loss adjustment expenses from commercial auto and our participation in a mandatory state joint underwriting association. 7

Third Quarter 2017 Premiums by Line of Business Gross Written Premium Livery Physical Damage 7% Commercial Lines 11% Personal Lines 81% Percentage of Total For the Quarter Ended September 30, 2017 September 30, 2016 Personal Lines $26,729,634 $ 21,357,900 Commercial Lines 3,634,037 3,111,308 Livery Physical Damage 2,422,352 2,640,531 Other(1) 65,778 59,637 Total $ 32,851,801 $ 27,169,376 Livery Physical Damage 8% Commercial Lines 10% Personal Lines 82% Percentage of Total Net Written Premium September 30, 2017 September 30, 2016 Personal Lines 19,373,782 11,893,952 Excluding the effect of quota share adjustments on July 1 (1) 7,140,088 - Personal Lines 26,513,870 11,893,952 Commercial Lines 3,250,326 2,760,623 Livery Physical Damage 2,422,352 2,640,531 Other(2) 74,771 (62,826) Total $ 32,261,319 $ 17,232,280 (1) Effective July 1, 2017, we decreased the quota share ceding rate in our personal lines quota share treaty from 40% to 20%. The Cut-off of this treaty on July 1, 2017 resulted in a $7,140,000 return of unearned premiums from our reinsurers that were previously ceded under the expiring personal lines quota share treaty. (2) Other includes, among other things, premiums and loss and loss adjustment expenses from commercial auto and our participation in a mandatory state joint underwriting association. 8

Breakdown of Third Quarter 2017 Net Loss Ratio Core loss ratio excluding winter weather and prior year development decreased 0.1 point. Claim frequency trends are favorable and fire claim activity was in line with expectations. Prior year loss development was favorable by 0.2 points, compared to 0.4 points of favorable development in Q3-2016. There was no impact from winter weather. Net Loss Ratio Breakdown 40% 35% 30% 25% 20% 15% 10% 5% 0% -5% 33.1% 33.2% -0.2% -0.4% Q3 2017 Q3 2016 Core Severe Winter Weather Prior Years 9

Investment Portfolio Portfolio at September 30, 2017 Fixed income portfolio: 89.9% Effective duration less than five years Average Credit rating A- September 30, 2017 December 31, 2016 Total Investments $129.86 $95.51 Cash and Equivalents $25.88 $12.05 Cash and Investments at 9/30/17 Preferred Stock Common Equity 4% 4% Total Cash and Investments $155.74 $107.56 Residental MBS 14% Fixed Income - Corporate 53% Bonds Only AverageEffective Maturity 5.53 years 4.97 years Duration 4.84 years 4.38 years Avg Credit Rating A- A- Cash & Cash Equivalents 17% Fixed Income States & Municipal 8% Fixed Income US Treasuries <1% 10

Long-Term Value Creation Book Value Per Share $10.00 $9.00 $8.00 $7.00 $6.00 $5.00 $5.35 $5.54 $5.57 $5.73 $6.00 $6.18 $6.32 $6.80 $7.16 $7.15 $8.29 $8.50 $8.83 $4.00 2014Q3 2014Q4 2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 Rolling Latest Twelve Months Earnings Per Share $1.50 $1.00 $0.74 $0.74 $0.87 $0.93 $0.94 $0.96 $1.00 $1.11 $1.12 $1.20 $1.07 $1.02 $0.50 $0.52 $- 2014Q3 2014Q4 2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 Note: Earnings Per Share growth in 2017 was impacted by the 2,692,500 shares issued in the follow-on offering during Q1 2017. CAGR Compound Annual Growth Rate 11

Multi-State Expansion Plan VT ME Launched in New Jersey in May 2017. Homeowners filing in Rhode Island approved in October. Anticipate launch in Rhode Island in Q4 2017. Licensed to write P&C insurance in NY, NJ, PA, CT, RI, and TX. Preliminary approval in MA. PA NY NH CT RI MA NJ 12

2017 Third Quarter Financial Summary Financial Highlights Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands) 2017 2016 % Change 2017 2016 % Change Direct written premiums (1) $32,840 $27,171 20.9% $89,424 $76,375 17.1% Net written premiums (2) $32,261 $17,232 87.2% $68,723 $48,847 40.7% Net premiums earned $21,514 $15,646 37.5% $54,838 $45,189 21.4% Total ceding commissions revenue $1,718 $2,935-41.5% $8,208 $8,274-0.8% Net investment income $1,033 $709 45.7% $2,917 $2,286 27.6% U.S. GAAP Net income $4,074 $3,461 17.7% $8,055 $6,844 17.7% U.S. GAAP Diluted EPS $0.38 $0.43-11.6% $0.77 $0.89-13.5% Comprehensive income $4,389 $3,341 31.4% $9,294 $8,041 15.6% Net operating income (1) $4,060 $3,302 23.0% $7,992 $6,445 24.0% Net operating income Diluted EPS (1) $0.38 $0.41-7.3% $0.76 $0.83-8.4% Return on average equity (annualized) 17.7% 25.1% -7.4 points 14.3% 17.9% -3.6 points Net loss ratio 32.9% 32.8% 0.1 points 41.6% 45.2% -3.6 points Net underwriting expense ratio 36.9% 34.6% 2.3 points 35.2% 33.8% 1.4 points Net combined ratio 69.8% 67.4% 2.4 points 76.8% 79.0% -2.2 points (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 which can be found in the Press Release dated November 9, 2017. (2) Effective July 1, 2017, we decreased the quota share ceding rate in our personal lines quota share treaty from 40% to 20%. The Cut-off of this treaty on July 1, 2017 resulted in a $7,140,000 return of unearned premiums from our reinsurers that were previously ceded under the expiring personal lines quota share treaty. 13

For Additional Information Amanda M. Goldstein CPA, ARe Investor Relations Director agoldstein@kingstoneic.com 14