Business
Kingstone Eliminates Personal Lines Quota Share for 2021
KINGSTON, NY / ACCESSWIRE / January 14, 2021 / Kingstone Companies, Inc. (NASDAQ:KINS) (the "Company" or "Kingstone"), a Northeast regional property and
About this update from Kingstone Companies, Inc
[{"type":"text","content":"KINGSTON, NY / ACCESSWIRE / January 14, 2021 / Kingstone Companies, Inc. (NASDAQ:KINS) (the \"Company\" or \"Kingstone\"), a Northeast regional property and casualty insurance holding company, today announced that Kingstone Insurance Company (\"KICO\"), its wholly owned subsidiary, terminated its personal lines quota share treaty for 2019-2020 on a cut-off basis effective December 31, 2020 and does not plan to enter into a new treaty for 2021.Barry Goldstein, KICO and KINS CEO elaborated, \"KICO entered into a 25% personal lines quota share treaty on December 15, 2019, following a very difficult 2019. While the terms of the agreement were acceptable to us at the time and allowed us to achieve our then objectives, the changes we have made to improve profitability beginning in Q3 2019 have put us in a position that we believe that we no longer need the surplus support of our reinsurer partners. We are confident in the adequacy of our reserves. We've fully exited the commercial liability business and the volatility that came along with it. Most important for the future, rate increases and tightened underwriting standards are yielding the planned results in our personal lines business. We are in a good place.\"Meryl Golden, KINS and KICO COO noted, \"The impact of the treaty cut-off will be that in 2021 KICO will retain the profitability that would otherwise have been ceded to the reinsurers. At the conclusion of the treaty, there was approximately $16.7 million of premium, previously ceded to the reinsurers but not yet earned, that will be returned to KICO and add to KICOs' earned premium during 2021. In addition, we expect organic growth of5-7% during 2021. We anticipate full year 2021 net earned premiums of $135-145 million.\"About Kingstone Companies, Inc.Kingstone is a northeast regional property and casualty insurance holding company whose principal operating subsidiary is Kingstone Insurance Company (\"KICO\"). KICO is a New York domiciled carrier writing business through retail and wholesale agents and brokers. KICO offers primarily personal lines insurance products in New York, New Jersey, Rhode Island, Massachusetts, and Connecticut. Kingstone is also licensed in Pennsylvania, New Hampshire and Maine.Forward-Looking StatementsAs of the date of this release, the Company has not completed its financial close process for the ...