Kingstone Cos., Inc. operates as a holding company, which engages in the provision of property and casualty insurance policies to individuals and small businesses through its wholly owned subsidiary, Kingstone Insurance Company. It writes business exclusively through independent retail and wholesale agents and brokers. The company was founded in 1886 and is headquartered in Kingston, NY.
Factors That May Affect Future Results and Financial Condition
As a property and casualty insurer, we may face significant losses from catastrophes and severe weather events.
Unanticipated increases in the severity or frequency of claims may adversely affect our operating results and financial condition.
A downgrade in our financial strength rating from A.M. Best may have a material adverse effect on our competitive position, the marketability of our product offerings, and our liquidity, operating results and financial condition.
Adverse capital and credit market conditions may significantly affect our ability to meet liquidity needs or our ability to obtain credit on acceptable terms.
We are exposed to significant financial and capital markets risk which may adversely affect our results of operations, financial condition and liquidity, and our net investment income can vary from period to period.
Reinsurance subjects us to the credit risk of our reinsurers, which may have a material adverse effect on our operating results and financial condition.
Applicable insurance laws regarding the change of control of our company may impede potential acquisitions that our shareholders might consider desirable.
The insurance industry is subject to extensive regulation that may affect our operating costs and limit the growth of our business, and changes within this regulatory environment may adversely affect our operating costs and limit the growth of our business.
Changing climate conditions may adversely affect our financial condition, profitability or cash flows.
Because substantially all of our revenue is currently derived from sources located in New York, our business may be adversely affected by conditions in such state.
We are highly dependent on a relatively small number of insurance brokers for a large portion of our revenues.
As a holding company, we are dependent on the results of operations of our subsidiary, KICO; there are restrictions on the payment of dividends by KICO.
We may not be able to generate sufficient cash to service our debt obligations, including the Notes.
Our future results are dependent in part on our ability to successfully operate in an insurance industry that is highly competitive.
If we lose key personnel or are unable to recruit qualified personnel, our ability to implement our business strategies could be delayed or hindered.
Difficult conditions in the economy generally could adversely affect our business and operating results.
Changes in accounting standards issued by the Financial Accounting Standards Board or other standard-setting bodies may adversely affect our reported results of operations and financial condition.
Our business could be adversely affected by a security breach or other attack involving our computer systems or those of one or more of our vendors.
We rely on our information technology and telecommunication systems, and the failure of these systems could materially and adversely affect our business.
Our stock price may fluctuate significantly and be highly volatile and this may make it difficult for shareholders to resell shares of our common stock at the volume, prices and times they find attractive.
The trading volume in our common stock has been limited. As a result, shareholders may not experience liquidity in their investment in our common stock, thereby potentially limiting their ability to resell their shares at the volume, times and prices they find attractive.
There may be future issuances or resales of our common stock which may materially and adversely affect the market price of our common stock.
Our executive officers and directors own a substantial number of shares of our common stock. This will enable them to significantly influence the vote on all matters submitted to a vote of our shareholders.
Anti-takeover provisions and the regulations to which we may be subject may make it more difficult for a third party to acquire control of us, even if the change in control would be beneficial to our shareholders.
Recent Sales of Unregistered Securities
Issuer Purchases of Equity Securities
Principal Revenue and Expense Items
Critical Accounting Policies and Estimates
Consolidated Results of Operations
Additional Financial Information
Credit Rating of Fixed-Maturity Securities
Liquidity and Capital Resources
Off-Balance Sheet Arrangements
Disclosure Controls and Procedures
Opinion on Internal Control over Financial Reporting
Definition and Limitations of Internal Control over Financial Reporting