Kingstone Companies, Inc · NASDAQ:KINS
Kingstone Companies — Investor Presentation (2018)
19 slides from Kingstone Companies's investor presentation, 2018
Slide 1: Fall 2018 Investor Briefing
Nasdaq: KINS Fall 2018 Investor Briefing Includes financial data through June 30, 2018
Slide 2: Safe Harbor
Safe Harbor The issuer has filed a registration statement (including a prospectus and a prospectus supplement) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement, the prospectus supplement and other docu
Slide 3: Regional Multi-Line P&C Insurance Company
Regional Multi- Multi-Line P&C Insurance Company • Personal and commercial lines property and casualty insurer – Focused primarily on personal lines and small commercial – Personal lines (home and dwelling) currently account for 80% of gross written premiums(1) – Our products fill a market need for
Slide 4: Our History – KINS and Kingstone Insurance Company
Our History – KINS and Kingstone Insurance Company • KINS originally an owner/franchisor of retail insurance agencies (formerly known as DCAP Group) • Acquired ownership of Commercial Mutual in 2009 upon its demutualization 2017 • Transformed insurance company into an A.M. Best “A-” (Excellent) rate
Slide 5: Experienced Management Team
Experienced Management Team Barry B. Goldstein • Chairman and Chief Executive Officer since 2001 Chairman & Chief Executive Officer • 20 years of experience in the P&C insurance industry • Kingstone’s largest shareholder Dale Thathcer • President and COO since March 2018 Chief Operating Officer • Jo
Slide 6: Financial Performance
Financial Performance ($ in thousands) (1) Key Financial Metrics 2013 2014 2015 2016 2017 2018 YTD Gross Written Premiums (2) 22.8% 26.1% 23.9% 13.4% 17.8% 20.9% Growth Rate Combined Ratio (inclusive 88.6% 77.1% 80.0% 79.2% 80.6% 98.8% of all weather events) Income from Operations 2,777 7,876 10,309
Slide 7: The Kingstone Story
The Kingstone Story Focus on Agency Relationships: The Foundation of Our Success • Strong relationships with P&C insurance distribution partners (over 400 agencies) • Consistency and dependability of service makes Kingstone an excellent alternative to larger carriers • Focus on smaller sized agencie
Slide 8: A.M. Best Financial Strength Rating
A.M. Best Financial Strength Rating April 2017 Upgrade • We took the following steps to position KICO to achieve a ratings upgrade to “A-”(Excellent): − Contributed $23 million of capital to KICO from January 2017 equity offering − Structured 2017/18 property catastrophe reinsurance to meet A.M. Bes
Slide 9: Business Mix
Business Mix • Focus on products that meet the needs of our agency partners • Primarily homeowners and dwelling coverages • Niche livery physical damage coverage • Expanding and diversifying our personal and commercial lines products • Approximately 94% of policies in downstate New York (NYC / Long
Slide 10: Serving Large and Stable Markets
Serving Large and Stable Markets • New York marketplace - 4th largest state in the country with estimated population of 19.7 million - 4th largest P&C insurance market in the U.S. - 4th largest Homeowners insurance market in the U.S. • Entering other large markets with similar dynamics - New Jersey
Slide 11: Regional Expansion Plan
Regional Expansion Plan • Entering other Northeastern states where Kingstone can build out an agency-only VT distribution model based on the success achieved in the New York market ME • Expansion Market Progress – Began writing business in New Jersey in May NH 2017 MA NY – Wrote first policy in Rhod
Slide 12: Established and Efficient Operations
Established and Efficient Operations • Primary operations center in Kingston, NY - Provides low-cost operating environment • Investment in new tools and technology - Improved efficiency and effectiveness of underwriting and claims processes - Implemented new producer and insured portal • Online appl
Slide 13: Consistent Growth in Profitable Premium
Consistent Growth in Profitable Premium Gross Written Premiums ($ in millions) $121.6 $103.2 $91.0 $76.3 $68.4 $60.4 $56.6 2013 2014 2015 2016 2017 2017YTD 2018YTD GAAP Combined Ratio (Inclusive of Weather- Weather-related Losses) 85.7% 88.6% 77.1% 80.0% 79.2% 80.6% 81.4% 98.8% (1) (1) (2) 2013 2014
Slide 14: Steady Earnings and Equity Growth
Steady Earnings and Equity Growth Net Income ($ in millions) $10.0 $8.9 $7.0 $5.3 $4.0 $2.0 $0.8 $0.3 Stockholders' Equity ($ in millions) $94.6 $88.7 $56.7 $45.3 $40.5 $35.7 $16.3 2012 2013 2014 2015 2016 2017 2018YTD Note: 2017 YTD and 2018 YTD reflect the six months ended June 30, 2017 and 2018,
Slide 15: Strong Balance Sheet
Strong Balance Sheet • Strong reserve adequacy, with favorable annual development all years since 2014 • Conservative reinsurance program meeting A.M. Best “A-” (Excellent) standards ($ in millions) June 30, 2018 December 31, 2017 Cash and Investments $186.3 $187.5 Total Assets 255.4 254.5 Loss and
Slide 16: Reinsurance Provides Balance Sheet Protection & Capital Management
Reinsurance Provides Balance Sheet Protection & Capital Management With a presence in coastal markets, Kingstone spends extensive time and resources managing its catastrophe risk while simultaneously growing its core business. Conservative Exposure and Catastrophe Management Standards • Net premium
Slide 17: Investment Portfolio
Investment Portfolio Portfolio at June 30, 2018 Cash and Investments at 6/30/18 • Fixed income portfolio: 89.2% Alternative • Effective duration of five years Investments 1% • Average credit rating A- Preferred Stock 4% Cash & Cash Equivalents Common Equities 10% 6% ($ in millions) December 31, June
Slide 18: Investment Considerations
Investment Considerations • Sustainable operating profits Consistent Profitable Growth • Multiple sources of new growth • Embedded earnings growth from eliminating quota share • Favorable underwriting trends in target markets • Large, stable markets Attractive Market Position • Attractive competitiv
Slide 19: Nasdaq: KINS
Nasdaq: KINS Kingstone Companies, Inc. 15 Joys Lane Kingston, NY 12401 www.kingstonecompanies.com Contacts Barry Goldstein Victor Brodsky Chairman and Chief Executive Officer Chief Financial Officer (845) 340-8378 (845) 340-8379 [email protected] [email protected]