Kingstone(US:KINS)2025-05-15 19:53Financial Performance - Net premiums earned increased to $43,523,063 for Q1 2025, up from $28,819,902 in Q1 2024, representing a growth of 51.2%[17] - Total revenues for Q1 2025 reached $50,498,775, compared to $35,765,177 in Q1 2024, marking an increase of 41.2%[17] - Net income for Q1 2025 was $3,882,660, significantly higher than $1,426,679 in Q1 2024, reflecting a growth of 172.5%[17] - Earnings per share (basic) increased to $0.29 in Q1 2025 from $0.13 in Q1 2024, a growth of 123.1%[17] - The company reported a comprehensive income of $6,105,846 for Q1 2025, compared to $986,271 in Q1 2024, reflecting a significant increase of 519.5%[17] - Cash flows provided by operating activities for the three months ended March 31, 2025, were $17,857,307, up from $6,098,220 in 2024[22] - The Company reported a net income of $3,883,000 for the three months ended March 31, 2025, an increase of $2,456,000 or 172.1% compared to $1,427,000 in the same period of 2024[204] Assets and Liabilities - Total assets as of March 31, 2025, amounted to $385,439,240, an increase from $374,915,843 at December 31, 2024, indicating a growth of 2.8%[14] - Total liabilities decreased to $303,229,277 as of March 31, 2025, down from $308,207,392 at December 31, 2024, a reduction of 1.6%[14] - Cash and cash equivalents rose to $37,490,182 at March 31, 2025, compared to $28,669,441 at December 31, 2024, an increase of 30.7%[14] - Total investments increased to $225,869,300 as of March 31, 2025, compared to $208,617,941 at December 31, 2024, a growth of 8.2%[14] Loss and Expense Management - Loss and loss adjustment expenses for Q1 2025 were $27,175,078, up from $17,859,587 in Q1 2024, representing a rise of 52.5%[17] - The net loss ratio for the three months ended March 31, 2025, was 62.4%, compared to 62.0% in the prior year, indicating a slight increase in loss experience[155] - The net balance of unpaid loss and loss adjustment expense reserves at the end of March 2025 was $102,093,128, up from $89,774,303 at the end of March 2024, indicating an increase of approximately 13.6%[59] - The Company incurred total losses of $27,175,078 for the three months ended March 31, 2025, compared to $17,859,587 for the same period in 2024, representing an increase of approximately 52.9%[59] Reinsurance and Risk Management - The Company entered into a 27% quota share reinsurance treaty for personal lines business effective January 1, 2024, which was replaced by a 16% quota share treaty effective January 1, 2025[78] - The Underlying excess of loss reinsurance treaty provides 50% coverage for losses of $400,000 in excess of $600,000, with the retention increasing from $530,000 to $640,000 between the 2024/2025 and 2025/2026 treaties[79] - The Company’s participation in reinsurance arrangements does not relieve it of its obligations to policyholders, ensuring continued commitment to policyholder protection[83] Stock and Equity - Net proceeds from the issuance of common stock amounted to $9,545,692 in Q1 2025[22] - KICO's total debt was $5,364,265, a decrease from $11,171,420 as of December 31, 2024[89] - The Company sold 612,999 shares of Common Stock at a weighted average price of $16.00 per share during the three months ended March 31, 2025, raising $9,545,692 in net proceeds under the ATM program[123] - The Company granted 70,934 restricted stock awards with a weighted average fair value of $15.31 per share during the three months ended March 31, 2025, resulting in an aggregate fair value of $1,086,187[113] Operational Metrics - The net combined ratio for the period was 93.7%, slightly up from 93.3% in the prior year, indicating stable underwriting performance[155] - The company achieved a net underwriting expense ratio of 33% for the year ended December 31, 2024[195] - The Company’s insurance operations are evaluated on underwriting results, which include net premiums earned and loss adjustment expenses, contributing to the net combined ratio[148] Policy and Premiums - The company entered into a renewal rights agreement to offer a replacement policy to selected homeowners policyholders in Downstate New York, encompassing approximately $70 million in written premium[159] - Direct written premiums for the three months ended March 31, 2025, were $58,175,000, an increase of $8,850,000 or 17.9% compared to $49,325,000 in the same period of 2024[204] - Core direct written premiums increased by 22.7% to $57,175,000 compared to $46,587,000 for the same period in 2024[198] - Non-Core direct written premiums decreased by 63.5% to $1,000,000 for the three months ended March 31, 2025, down from $2,738,000 in 2024[198]