Kingstone(US:KINS)2021-11-15 21:51Revenue and Premiums - Total revenues for the three months ended September 30, 2021, increased to $38,957,974, compared to $34,822,471 for the same period in 2020, representing an increase of approximately 6.1%[12] - Net premiums earned for the nine months ended September 30, 2021, were $106,828,895, up from $81,099,387 in the same period of 2020, reflecting a growth of about 31.7%[12] - Direct written premiums for the nine months ended September 30, 2021, were $131.61 million, an increase of $6.52 million or 5.2% compared to $125.09 million in the same period of 2020[157] - Direct written premiums for the three months ended September 30, 2021, were $48,865,000, a 6.8% increase from $45,743,000 in the same period of 2020[191] - Total revenues for the nine months ended September 30, 2021, were $118.06 million, a 23.3% increase from $95.77 million in the same period of 2020[153] Losses and Expenses - The company reported a net loss of $10,618,265 for the three months ended September 30, 2021, compared to a net loss of $1,227,856 for the same period in 2020, indicating a significant increase in losses[12] - The net loss was $9.61 million for the nine months ended September 30, 2021, compared to a net loss of $2.06 million for the same period in 2020, reflecting a 365.4% increase in losses[154] - Total incurred losses and LAE for the nine months ended September 30, 2021, amounted to $79.06 million, compared to $49.32 million for the same period in 2020, marking an increase of about 60.3%[55] - Net loss and LAE increased to $79,060,000 for Nine Months 2021 from $49,317,000 for Nine Months 2020, resulting in a net loss ratio of 74.0%[174] - The net loss ratio for the nine months ended September 30, 2021, was 74.0%, up from 60.8% in the same period of 2020, reflecting a 21.7% increase[156] Assets and Liabilities - Total assets as of September 30, 2021, were $320,226,541, a slight increase from $317,582,267 as of December 31, 2020[9] - Total liabilities increased to $242,395,284 as of September 30, 2021, compared to $224,781,865 at the end of 2020, marking an increase of approximately 7.8%[9] - The company’s total stockholders' equity decreased to $77,831,257 as of September 30, 2021, down from $92,800,402 at December 31, 2020, indicating a decline of about 16.1%[9] - The accumulated deficit as of September 30, 2021, was $(5,567,481), compared to $(3,514,340) as of September 30, 2020, reflecting a worsening financial position[18] Investments - The Company reported net investment income of $1,676,596 for the three months ended September 30, 2021, an increase from $1,494,086 for the same period in 2020[40] - The Company realized net gains on investments of $204,534 for the three months ended September 30, 2021, compared to $2,107,876 for the same period in 2020[43] - The gross realized gains from equity securities for the nine months ended September 30, 2021, were $2,015,574, compared to $644,111 for the same period in 2020[43] - The Company held cash and cash equivalents of $36,108,088,000 as of September 30, 2021, compared to $19,463,742,000 as of December 31, 2020[52] - The Company reported gross realized losses on fixed-maturity securities of $8,103 for the three months ended September 30, 2021, compared to $107,193 for the same period in 2020[43] Reinsurance - The company entered into a new excess of loss and catastrophe reinsurance treaty effective July 1, 2021, providing coverage of $5,000,000 in excess of $5,000,000 for catastrophe losses[75] - The quota share treaty for personal lines business ceded 25% of the risk for the treaty year ending December 30, 2020[76] - The total reinsurance coverage per occurrence for personal umbrella policies was reported at $4,700,000[78] - The total reinsurance recoverable on unpaid losses was $12,332,000[74] Dividends and Stockholder Information - The company declared dividends of $0.0400 per common share for the three months ended September 30, 2021, consistent with the same period in 2020[12] - Dividends paid during the nine months ended September 30, 2021, totaled $1,274,797, compared to $426,990 in the same period of 2020, representing a substantial increase[16] - Dividends declared and paid on Common Stock for the nine months ended September 30, 2021, were $1,274,797, down from $1,530,390 in 2020, representing a decrease of approximately 16.7%[87] Employee Compensation and Plans - The Company adopted an Employee Stock Purchase Plan allowing eligible employees to purchase up to 750,000 shares of Common Stock, effective November 1, 2021[100] - The long-term compensation award for Mr. Goldstein ranges from $945,000 to $2,835,000, contingent on a minimum 14% annual increase in the Company's adjusted book value per share from December 31, 2019, to December 31, 2022[122] - Stock-based compensation expense for stock options for the nine months ended September 30, 2021, was approximately $43,000, compared to $52,000 for the same period in 2020[90] Legal and Regulatory Matters - The Company is involved in various legal proceedings as part of its ordinary business operations, which may impact its financial estimates[113] - The Company has recorded a valuation allowance against state net operating loss carryovers due to uncertainty in generating sufficient taxable income, with state NOLs of approximately $31,531,000 as of September 30, 2021[105]