Kingstone CEO Letter to Shareholders; Says Impact Of Non-Core Business On Loss Ratio In 2023 7.2% Estimated; Forecast 2.8% In 2024
Portfolio Pulse from Benzinga Newsdesk
Kingstone Companies, Inc. CEO Meryl Golden issued a letter to shareholders reviewing 2023 accomplishments and 2024 expectations. The company faced macro-economic challenges in 2023 but anticipates positive changes in 2024, including abating inflation, declining reinsurance rates, and falling interest rates. Kingstone's Non-Core business outside New York is expected to reduce its impact on the loss ratio from 7.2% in 2023 to 2.8% in 2024. The company has also achieved a significant reduction in its expense ratio, which is forecasted to drop from 36% in 2022 to 29% in 2024. Personal lines average premiums are expected to increase, leading to wider margins and higher underwriting profits.
January 10, 2024 | 9:59 pm
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Kingstone Companies, Inc. anticipates positive financial results in 2024 with a reduced impact from Non-Core business, a lower expense ratio, and increased premiums. These factors are likely to lead to wider margins and higher underwriting profits.
The CEO's letter outlines specific financial improvements and strategic focuses that are likely to be viewed positively by investors. The reduction in the impact of Non-Core business and the decrease in the expense ratio are concrete measures that can lead to improved profitability. Additionally, the expected increase in premiums suggests potential revenue growth. These factors combined with the macro-economic tailwinds provide a strong case for a positive short-term impact on KINS stock.
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