Kingstone Companies Inc (NASDAQ:KINS) Q1 2019 Earnings Conference Call Transcript

May 09, 2019 • 08:30 am ET


Kingstone Companies Inc (NASDAQ:KINS) Q1 2019 Earnings Conference Call Transcript


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Greetings. Welcome to Kingstone Companies 2019 First Quarter Earnings Call. (Operator Instructions) Please note, this conference is being recorded.

I will now turn the conference over to Amanda Goldstein, Investor Relations Director. Thank you. You may begin.

Amanda M. Goldstein

Thank you very much, Sharine. Good morning, everyone. Yesterday afternoon, the Company issued a press release detailing Kingstone's 2019 first quarter results.

On this call, Kingstone may make forward-looking statements regarding itself and its business. The forward-looking events and circumstances discussed on this call may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting Kingstone. For more information, please refer to the section entitled 'Factors That May Affect Future Results and Financial Conditions' in Part 1 Item 1-A of the company's Form 10-K for the year ended December 31, 2018, along with the commentary on forward-looking statements at the end of the Company's earnings release issued yesterday.

In addition, our remarks today include references to non-GAAP measures. For a reconciliation of our non-GAAP measures to the GAAP figures, please see the tables in our earnings release.

With that, I'd like to call -- turn the call over to Kingstone's CEO, Mr. Dale Thatcher. Please go ahead, Mr. Thatcher.

Dale Allen Thatcher

Thanks, Amanda. Welcome to our first quarter 2019 conference call. As previously reported, this was an extremely challenging quarter for the Company on several fronts. Not only did we have another rough winter season with several CAT events, but we also completed a review and restructuring of our claims department that resulted in significant strengthening of reserves. In spite of those events, I want to reiterate upfront what we stated in our press release. We expect the full-year to generate a combined ratio of between 88% and 91% as well as 4 to 5 points of CATs. For 30 of my 35 years in the business, those results would be stellar. They're still pretty good, just not up to our expectations.

During the quarter, we announced the hiring of Bill O'Brien as our new Claims Officer. I worked with Bill in a past life and can honestly say, he's one of the best claims professionals I have ever worked with. We're very fortunate to have him with us. I'm very pleased with the impact he's having already in identifying key issues and setting us on a path to improvement. Ben will discuss more details on our winter CAT losses and reserve strengthening in a moment, but it's important for those of you who don't know me to understand my philosophy. I believe in a strong balance sheet. In this business, I've always said that reserve problems are like fish. They don't get any better with age. You have to recognize them early and fix them right away. We did that. Despite the difficult quarter, we remain optimistic with the underlying fundamentals and profit drivers of our business are strong. We continue to take advantage of new opportunities and markets to grow our business.

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