Kingstone Companies (KINS) Q3 Earnings call transcript Nov 13, 2024
1min read Kingstone Companies, a leading insurance provider, recently held its third quarter earnings call, showcasing a remarkable period of growth and profitability. The call, led by CEO Meryl Golden and CFO Jennifer Gravelle, highlighted the company's achievements and outlined its future plans.
Financial Highlights
Kingstone reported its highest income ever, with record-setting premiums written, and an impressive 40% growth rate in its core personal lines business. The company's operating margins also reached new heights, demonstrating a robust financial performance. This success is attributed to the exit of two major competitors from the New York market, which has created a significant opportunity for Kingstone to expand its footprint.
Growth and Opportunities
Meryl Golden emphasized the company's strategic approach to growth, focusing on profitable opportunities rather than arbitrary expansion. Kingstone has been proactive in capitalizing on the market dislocation caused by competitors exiting the market, carefully selecting risks that meet its underwriting standards and profit margin objectives. The company is particularly optimistic about its Select product, which has outperformed expectations and is expected to play a pivotal role in the company's growth trajectory.
Financial Management
Kingstone's financial management has been a key driver of its success. The company has been careful in managing its expenses, ensuring that it remains profitable even amidst growth. The use of an at-the-market offering (ATM) to raise capital and repay debt has been instrumental in strengthening the company's financial position. Kingstone's focus on a rational capital and reinsurance structure, along with a commitment to repaying its debt, positions the company for long-term success.
Looking Ahead
Looking forward, Kingstone is optimistic about its future. The company is projected to write between $25 million and $30 million in incremental premiums in 2024 from the market opportunity presented by the exiting competitors. With a strategic approach to growth and a focus on profitability, Kingstone is well-positioned to capitalize on these opportunities and continue delivering value to its shareholders.
In conclusion, Kingstone Companies' third quarter earnings call underscores a period of significant growth and financial strength. The company's strategic approach to growth, focus on profitability, and robust financial management set the stage for a promising future. Kingstone's commitment to delivering value to its shareholders and maintaining a strong financial position is commendable and bodes well for the company's long-term prospects.