Kingstone Companies Provides Interim Storm Analysis

pan>)--Kingstone Companies, Inc. (KINS) (NASDAQ: KINS) today provided an
interim analysis of the effects of Superstorm Sandy on its results of
operations and financial condition. KINS explained that Kingstone
Insurance Company (KICO), its wholly-owned subsidiary, whose insureds
are located primarily in New York City, Long Island and Westchester
County, New York, estimates that its pre-tax net loss as a result of the
storm and flooding is limited to $750,000. On an after tax basis, the
loss per share is estimated at $.13 per share. There will be a decline
in the ceding commission revenue to be earned during the 4th
quarter of 2012 and the first two quarters of 2013, but the amount
cannot yet be reasonably estimated due to the high volume of claims we
have already received and the anticipation of many more to follow.
KICO purchases reinsurance in order to reduce its net liability on
insurance risks and to protect against catastrophes. Pursuant to its
quota share reinsurance agreements, in addition to limiting its exposure
to risk, KICO receives ceding commissions from the reinsurers. The
amount of the commissions is based upon the loss ratio experienced by
the reinsurers during the treaty term, from the ceded business over that
period of time. KICOs personal lines business, which includes
homeowners insurance, is reinsured under a 75% quote share treaty and
catastrophe insurance pursuant to which KICOs net liability is limited
to 25% of the initial $3,000,000 of direct losses incurred from an
occurrence, or $750,000. For losses in excess of $3,000,000 KICO
purchased a total of $73,000,000 of catastrophe coverage.
KINS expects that its earnings for the three month period ended
September 30, 2012 will be $.23 per diluted share and for the nine month
period ended September 30, 2012 will be $.59 per share. Accordingly,
although the effects of the storm will be material to KINS post-3rd
quarter results of operations, it expects that they will not have a
material adverse impact on its financial condition.
KINS anticipates that it will be announcing the results of its
operations for the three and nine months ended September 30, 2012 on or
before November 14, 2012.
Forward Looking Statements
Statements in this press release may contain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. All statements, other than statements of historical
facts, may be forward-looking statements. These statements are based on
managements current expectations and are subject to uncertainty and
changes in circumstances. These statements involve risks and
uncertainties that could cause actual results to differ materially from
those included in forward-looking statements due to a variety of
factors. More information about these factors can be found in
Kingstones filings with the Securities and Exchange Commission,
including its latest Annual Report filed with the Securities and
Exchange Commission on Form 10-K. Kingstone undertakes no obligation to
publicly update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.

Information Source: Business Wire

November 8th, 2012 @ 05:33pm