The following is a summary of the Kingstone Companies, Inc. (KINS) Q1 2024 Earnings Call Transcript:
Financial Performance:
Kingstone reported a net income of $1.4 million or $0.13 per share for Q1 2024, marking a $6.5 million turnaround from the same quarter last year.
Core direct written premiums grew by 12.5% to hit $47 million, even as non-core business strategically declined by 55.6%.
Consolidated direct premiums written saw an increase of 3.6% primarily due to ongoing pricing maneuvers.
The company announced an improved combined ratio of 93.3%, attributable to both lower losses and expenses.
Net investment income remained steady at $1.5 million, mirroring the figures from the same period in the previous year.
Business Progress:
Turnaround plans and strategic investments have fueled a double-digit growth in their core operations and boosted underwriting results.
Continuation of growth has been forecasted for the second quarter.
The performance of the 'Select' product, designed for better rate-risk correlation, exceeded expectations and recorded a significantly lower frequency than the legacy product.
The company is working on enhancing the Select product to foster future growth and profitability.
Significant cuts have been made in the volatile non-core business, with plans to eradicate its negative impact on consolidated earnings.
Following an overperformance in the first quarter, Kingstone has raised its 2024 guidance, forecasting direct written premium growth in their core business between 16% and 20%, a combined ratio between 86% and 90%, earnings per share between $0.75 and $1.10, and a return on equity between 22% and 30%.
More details: Kingstone IR
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