Kingstone Companies (KINS) The MicroCap Rodeo Fall Conference 2024 summary

Company background and leadership

• Focuses on property and casualty insurance for coastal homeowners in New York, with a history dating back to 1886 and public since 2009.

• CEO has extensive insurance and financial industry experience, joining five years ago and leading as CEO for one year.

Turnaround strategy and operational improvements

• Shifted focus to core New York business after unprofitable expansion outside the state.

• Modernized infrastructure, hired new leadership, and launched products better matching rate to risk.

• Reduced expenses from $0.41 to less than $0.31 per dollar, and managed reinsurance costs amid a hard market.

Financial performance and growth

• Achieved first profitable quarter in four years in Q4 last year, followed by three consecutive profitable quarters.

• Wrote $103 million in premium in the first six months, up 8% overall and 17% in core New York business.

• Loss ratio improved by 23 points year-over-year, with a 14% margin and $5.9 million net income for the first half.

• Basic EPS was $0.54 and ROE nearly 32% for the first six months.