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Kingstone CEO Year-end Letter to Stockholders: Driving Growth and Increased Profitability

Kingstone CEO Year-end Letter to Stockholders: Driving Growth and Increased Profitability

金石保險CEO年終信函致股東:推動增長和提高盈利能力
Accesswire ·  01/08 14:00

KINGSTON, NY / ACCESSWIRE / January 8, 2025 / KiKingstone Companies, Inc. (NASDAQ:KINS) (the "Company" or "Kingstone"), a Northeast regional property and casualty insurance holding company, today issued a Year-end Letter to Stockholders from Meryl Golden, Chief Executive Officer.

金石保險公司(納斯達克:KINS)("公司"或"金石"),一家東北區域型財產和意外保險控股公司,今天發佈了來自首席執行官梅里爾·戈爾登的股東年終信。

Dear Fellow Investors:

親愛的投資者們:

As we mark the conclusion of another year, I write in reflection on a truly remarkable period. 2024 was the best year in Kingstone history with both record premium and profitability. The tremendous progress made rebuilding our foundational capabilities over the last several years allowed us to deliver four consecutive quarters of profitability and our best underwriting performance in recent times. I want to thank Kingstone's employees for the hard work that enabled us to achieve our exceptional results, Select producers for their commitment to the company and the Company's stockholders for your feedback and support. We look forward to reporting comprehensive fourth quarter and full-year 2024 financial results and updated 2025 guidance in March. Today I want to review some of our accomplishments in 2024 and initiatives to drive continued growth and profitability in 2025.

在我們慶祝又一年結束的時候,我想反思一下這段真正非凡的時期。2024年是金石歷史上最好的一年,創下了保費和盈利的紀錄。過去幾年中在重建基礎能力方面取得的巨大進步使我們能在連續四個季度中實現盈利,並且在最近的承保表現上取得了最佳成績。我想感謝金石的員工們,他們的努力使我們實現了卓越的成果,感謝選擇的生產商對公司的承諾,以及感謝公司的股東們對我們的反饋和支持。我們期待在3月報告全面的2024年第四季度和全年的財務結果,以及更新的2025年指導。今天我想回顧一下我們在2024年的一些成就以及推動2025年持續增長和盈利的計劃。

Attractive Competitive Environment Driving Increased Growth

吸引人的競爭環境促進增長加速。

The competitive landscape changed in late July when two sizeable competing carriers in New York state received regulatory approval to non-renew or cancel their business by year-end. Kingstone was in a fortuitous position to take advantage of this opportunity, with long-term producer relationships and a high degree of confidence in our Select product and operations. Our plan was to capitalize on this unique opportunity by being very intentional and selective on which properties to write to ensure the business met our profit margins. I am happy to share that we finished the year with over 31% growth in our core (New York State) direct written premiums, including 44% growth in the second half, driven by over 6,000 policies and $23 million in direct written premium from customers previously insured with these two carriers. We continue to be extremely optimistic for further growth in our core market in 2025.

當兩家大型競爭對手在紐約州獲得監管批准不再續保或在年終前取消其業務時,競爭格局在七月末發生了變化。金石處於一個有利的位置,能夠利用這一機會,擁有長期的生產商關係以及對我們選擇產品和運營的高度信懇智能。我們的計劃是通過精心選擇我們要承保的財產來利用這一獨特的機會,以確保業務符合我們的利潤率。我很高興地分享,我們在本年度的核心(紐約州)直接保費增長超過31%,其中下半年增長44%,這是因有超過6000份保單和來自之前與這兩家保險公司投保的客戶的2300萬直接書寫保費的推動。我們對2025年在我們的核心市場進一步增長保持極大的樂觀。

Non-Core Business Reduction Enhancing Profitability

非核心業務減少提升盈利能力

We made significant headway in reducing both the size of our non-core (outside New York State) book as well as the drag on our operating performance. We wrote approximately $10 million of non-core direct written premium in 2024, down 58% from the previous year, and our non-core policies-in-force declined by roughly 65% to less than 4,000. For 2024, the non-core business is expected to reduce earnings per share, on a basic and fully diluted basis, by $0.03 and $0.02, respectively, an improvement from a basic and fully diluted loss of $0.46 per share from the non-core business in 2023. We anticipate the impact of the non-core business to be immaterial in 2025.

我們在減少非核心(紐約州以外)業務規模以及對我們運營表現的拖累方面取得了顯著進展。我們在2024年撰寫了大約$1000萬的非核心直接書面保費,較去年下降了58%,而我們的非核心保單在保有效期方面減少了大約65%,低於4000份。在2024年,非核心業務預計將分別以基本和完全稀釋的基礎減少每股收益$0.03和$0.02,這比2023年非核心業務每股基本和完全稀釋損失$0.46有所改善。我們預計2025年非核心業務的影響將微不足道。

Lower Quota Share to Enhance Profitability Beginning in 2025

降低配額分享以提高盈利能力自2025年起

Kingstone Insurance Company ("KICO"), our wholly owned subsidiary, reduced its personal lines quota share treaty for 2025-2026 to 16% from 27% on a cut-off basis, effective January 1, 2025. The changes we have made to improve profitability have put us in the position where we require less surplus support from our reinsurer partners. As a result of the treaty cut-off, in 2025, KICO will retain more of the profitability that would otherwise have been ceded to the reinsurers. At the conclusion of the prior treaties, there was approximately $11 million of premium, previously ceded to the reinsurers but not yet earned, that will be returned to KICO and added to KICO's earned premium during 2025. Additionally, we will be paid a higher commission on the premium that is ceded. We anticipate that the reduction in quota share and better terms for the treaties will increase our projected earnings per share, basic and fully diluted, by $0.26 and $0.25, respectively, for 2025.

金石保險公司("KICO"),我們全資擁有的子公司,將其2025-2026年的個人保險配額分享條約從27%減少至16%,自2025年1月1日起生效。我們爲提高盈利能力所做的改變使我們處於一個不再需要我們再保險合作伙伴提供更多盈餘支持的位置。由於條約的截止,KICO將在2025年保留更多原本將轉讓給再保險商的盈利。在之前條約結束時,有約$1100萬的保費,之前轉讓給再保險商但尚未賺取的,將被返回給KICO,並在2025年計入KICO的已賺保費。此外,我們將在轉讓的保費上獲得更高的佣金。我們預計減少的配額分享和更好的條約條款將使我們2025年的每股盈利預期分別提高$0.26和$0.25,基本和完全稀釋。

Debt Prepayment Enhancing Profitability

債務提前償還提升盈利能力

During the fourth quarter of 2024, we utilized stock sale proceeds to make optional debt prepayments totaling $4 million, reducing our outstanding debt to $6 million at year-end. These optional prepayments will result in $0.55 million savings in annual interest expense and are expected to increase 2025 earnings per share, both basic and fully diluted, by $0.03. Our intent is to continue to reduce the amount of debt, and the corresponding interest expense, to drive enhanced value for our stockholders. This approach will allow us to explore capital return opportunities, such as dividends, which cannot commence until the debt has been fully retired.

在2024年第四季度,我們利用股票銷售收益進行了總計$400萬的可選債務提前償還,將我們的未償債務減少至年末的$600萬。這些可選的提前償還將每年節省$55萬的利息支出,並預計將2025年的每股收益(基本和完全稀釋)提高$0.03。我們的目標是繼續減少債務及對應的利息支出,以爲我們的股東創造更高的價值。這一方法將使我們能夠探索資本回報機會,例如分紅,但在債務完全還清之前無法開始。

In closing, we are excited to continue our momentum going into 2025! We are confident in our ability to grow premiums and earnings at a compelling rate for some time to come. We appreciate your continued support.

最後,我們很高興在2025年繼續保持我們的勢頭! 我們有信懇智能能夠在未來一段時間內以令人信服的速度增長保費和收益。 感謝您一直以來的支持。

Respectfully,

敬禮,

Meryl Golden
Chief Executive Officer

梅瑞爾·戈爾登
首席執行官

Disclaimer and Forward-Looking Statements
The expected 2024 results and guidance for 2025 provided above are based on information available as of January 8, 2025 and management's review of the financial results for 2024 and anticipated financial results for 2025. The foregoing remains subject to change based on management's ongoing review of the Company's 2024 and 2025 results and is a forward-looking statement (see below). Kingstone assumes no obligation to update the foregoing. The actual results may be materially different and are affected by the risk factors and uncertainties identified in this press release and in Kingstone's annual and quarterly filings with the Securities and Exchange Commission.

免責聲明和前瞻性聲明
上述2024年預計結果和2025年指導是基於截至2025年1月8日可獲得的信息,以及管理層對2024年財務結果和2025年預期財務結果的審查。前述內容仍然可能根據管理層對公司2024年和2025年結果的持續審查而有所變化,並且是前瞻性聲明(見下文)。金石保險不承擔更新前述內容的義務。實際結果可能有重大不同,且受到本新聞稿和金石保險向證券交易委員會提交的年度和季度報告中識別的風險因素和不確定性的影響。

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 I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023.

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 I, Item 1A of our Annual Report on Form 10-k for the year ended December 31, 2023.

The risks and uncertainties include, without limitation, the following:

The risks and uncertainties include, without limitation, the following:

  • the risk of significant losses from catastrophes and severe weather events;

  • risks related to the lack of a financial strength rating from A.M. Best;

  • risks related to our indebtedness due on June 30, 2026, including due to the need to comply with certain financial covenants and limitations on the ability of our insurance subsidiary to pay dividends to us;

  • adverse capital, credit and financial market conditions;

  • the unavailability of reinsurance at current levels and prices;

  • the exposure to greater net insurance losses in the event of reduced reliance on reinsurance;

  • the credit risk of our reinsurers;

  • the inability to maintain the requisite amount of risk-based capital needed to grow our business;

  • the effects of climate change on the frequency or severity of weather events and wildfires;

  • risks related to the limited market area of our business;

  • risks related to a concentration of business in a limited number of producers;

  • legislative and regulatory changes, including changes in insurance laws and regulations and their application by our regulators;

  • limitations with regard to our ability to pay dividends;

  • the effects of competition in our market areas;

  • our reliance on certain key personnel;

  • risks related to security breaches or other attacks involving our computer systems or those of our vendors; and

  • our reliance on information technology and information systems.

  • the risk of significant losses from catastrophes and severe weather events;

  • risks related to the lack of a financial strength rating from A.m. Best;

  • risks related to our indebtedness due on June 30, 2026, including due to the need to comply with certain financial covenants and limitations on the ability of our insurance subsidiary to pay dividends to us;

  • adverse capital, credit and financial market conditions;

  • the unavailability of reinsurance at current levels and prices;

  • the exposure to greater net insurance losses in the event of reduced reliance on reinsurance;

  • 我們的再保險公司面臨的信用風險;

  • 無法維持增長業務所需的足夠風險基礎資本;

  • 氣候變化對天氣事件和野火頻率或嚴重性的影響;

  • 與我們的業務有限市場區域相關的風險;

  • 與在有限數量的生產者中集中業務相關的風險;

  • 立法和監管變更,包括保險法律和法規的變化及其在我們監管機構中的應用;

  • 在支付分紅派息方面的限制;

  • 我們市場區域內競爭的影響;

  • 我們對某些關鍵人員的依賴;

  • 與我們的電腦系統或我們供應商的電腦系統相關的安全漏洞或其他攻擊風險;以及

  • 我們對信息科技和信息系統的依賴。

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.

Kingstone保留在遵守法律要求的情況下,不承擔公開更新或修訂任何前瞻性聲明的義務。

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 New York domiciled carrier writing business through retail and wholesale agents and brokers. KICO is actively writing personal lines and commercial auto insurance in New York, and in 2023 was the 15th largest writer of homeowners insurance in New York. KICO is also licensed in New Jersey, Rhode Island, Massachusetts, Connecticut, Pennsylvania, New Hampshire, and Maine.

金石保險公司
金石是一家位於東北區域的財產和意外保險控股公司,其主要運營子公司是金石保險公司("KICO")。KICO是一家註冊在紐約的保險公司,通過零售和批發代理商及經紀人開展業務。KICO在紐約積極承銷個人保險和商業汽車保險,並在2023年成爲紐約州第15大房主保險承銷商。KICO還在新澤西州、羅德島州、馬薩諸塞州、康涅狄格州、賓夕法尼亞州、新罕布什爾州和緬因州獲得許可。

Investor Relations Contact:
Karin Daly
Vice President
The Equity Group Inc.
kdaly@equityny.com

投資者關係聯繫:
卡琳·達利
副總裁
股權集團有限公司
kdaly@equityny.com

SOURCE: Kingstone Companies, Inc

資料來源:金石保險公司


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