Wed, Aug 14, 5:50 PM (153 days ago)
Kingstone Companies, Inc. reported a notable improvement in financial performance for the second quarter of 2024, reflecting a strategic shift towards core business and expense management. Total revenues for the quarter were $36.5 million, slightly down from $36.7 million in Q2 2023, primarily due to lower ceding commission revenue. However, net premiums earned increased by 2.7% to $30.3 million, driven by a 12.3% rise in direct written premiums, particularly in personal lines. The company achieved a net income of $4.5 million, reversing a loss of $0.5 million in Q2 2023, aided by a significant reduction in loss and loss adjustment expenses, which fell 27.3% year-over-year. The net loss ratio improved from 66.4% to 47.0%, indicating better underwriting results. The net combined ratio also improved to 78.2%, down from 98.9% in the prior year. Kingstone's cash position strengthened, with cash and investments totaling approximately $195.8 million as of June 30, 2024. The company continues to focus on reducing its non-core business and optimizing its underwriting processes, aiming for sustained profitability amidst ongoing market challenges. Future operations may be influenced by the evolving reinsurance environment and strategic initiatives under the "Kingstone 3.0" plan.