Kingstone(KINS)2025-03-18 21:11Strategy and Business Optimization - In 2023, the company initiated a new strategy called "Kingstone 3.0" to optimize its in-force business, following the previous "Kingstone 2.0" framework[48]. - The company reduced its non-Core book of business by 48% in 2023 and plans a further reduction of 65% in 2024 due to profitability concerns[56]. - The company aims to lower its net expense ratio to 33% by the end of 2024 through continued expense reduction efforts[55]. Financial Performance and Reserves - The company incurred 82.86 million in 2023[64]. - The net balance of loss and loss adjustment expenses at the end of 2024 was 88.53 million at the end of 2023[64]. - The company has established reserves for unpaid losses, including 88,529,000, showing a slight decrease from 24,319,000 for 2023, down from 121,818,000, an increase from 1,780,000, indicating a positive shift from a deficiency of 700,000 to 280,000,000 for losses associated with a single event[75]. - The net retention for the first event of a named storm catastrophe occurrence under the 2024/2025 Treaty is 9,500,000[75]. - The company has implemented a new reinsurance structure that is on a "net" of catastrophe reinsurance basis, differing from previous "gross" arrangements[74]. - In 2024, catastrophe losses increased the net loss ratio by 1.9 percentage points, while in 2023, it increased by 7.1 percentage points[79]. Regulatory Compliance and Legislative Changes - KICO's total adjusted capital (TAC) to authorized control level (ACL) ratio was 5.62, indicating compliance with New York's risk-based capital requirements[99]. - KICO's unassigned surplus was 12 million allowed without prior approval[100]. - KICO had three ratios outside the usual range as per the Insurance Regulatory Information System (IRIS) as of December 31, 2024[101]. - The New York State legislature passed a bill in 2024 requiring regulations for hurricane windstorm deductibles to be adopted by August 19, 2025[95]. - The DFS adopted amendments to cybersecurity regulations on November 1, 2023, requiring enhanced reporting and management of cybersecurity risks[86]. - KICO is subject to insurance holding company laws in New York, requiring fair and reasonable transactions among companies in the holding company system[80]. - The DFS commenced its examination of KICO for the years 2019 through 2022 in 2023, which was completed in 2024[97]. - The Terrorism Risk Insurance Program is scheduled to expire on December 31, 2027, serving as a federal backstop for terrorism-related insurance claims[89]. - KICO's ability to withdraw from unprofitable markets is restricted by state laws, which did not affect its exit from the commercial liability market in 2019[84]. Employee Relations and Corporate Governance - As of December 31, 2024, the company had 99 employees, with no employees covered by a collective bargaining agreement[106]. - The company maintains a good relationship with its employees[106]. - The company files its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K with the SEC, which are available free of charge on its investor relations website[107]. - The SEC maintains a website that contains reports and information regarding issuers that file electronically[107]. - The item regarding quantitative and qualitative disclosures about market risk is not applicable to smaller reporting companies[320]. Market Position - In 2024, the company was the 12th largest writer of homeowners insurance in New York, holding a 1.6% market share[57]. - The company has a strong focus on underwriting and claims management, utilizing detailed expertise and industry claims databases[50]. - The company has a network of over 700 producers, emphasizing long-term relationships and careful selection based on various performance metrics[51].