8-K - KINS - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report November 11, 2021

(Date of earliest event reported)

KINGSTONE COMPANIES, INC.
(Exact Name of Registrant as Specified in Charter)
Delaware	0-1665	36-2476480
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(State or Other Jurisdiction<br><br>of Incorporation)	(Commission<br><br>File No.)	(IRS Employer<br><br>Identification Number)
15 Joys Lane, Kingston, NY	12401
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(Address of Principal Executive Offices)	(Zip Code)

Registrant's telephone number, including area code: (845) 802-7900

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value per share	KINS	Nasdaq Capital Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02	Results of Operations and Financial Condition.

On November 11, 2021, Kingstone Companies, Inc. (the “Company”) issued a press release (the “Press Release”) announcing its financial results for the fiscal period ended September 30, 2021. The Press Release also announced that the Company’s Board of Directors has declared a $0.04 per share quarterly dividend payable on December 15, 2021 to stockholders of record at the close of business on November 30, 2021. A copy of the Press Release is furnished as Exhibit 99.1 hereto.

The information furnished with this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liabilities of that section, nor shall it be deemed incorporated by reference into any other filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

Item 9.01	Financial Statements and Exhibits.
(d)	Exhibits.
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	99.1	Press release, dated November 11, 2021, issued by Kingstone Companies, Inc.
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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	KINGSTONE COMPANIES, INC.
Dated: November 11, 2021	By:	/s/ Barry B. Goldstein
		Barry B. Goldstein
		President and CEO
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kins_ex991.htm EXHIBIT 99.1

FOR IMMEDIATE RELEASE Kingstone Announces 2021 Third Quarter Financial Results Board Declares Quarterly Dividend Kingston, NY — November 11, 2021 – Kingstone Companies, Inc. (Nasdaq: KINS) (the “Company” or “Kingstone”), a Northeast regional property and casualty insurance holding company, today announced its financial results for the quarter ended September 30, 2021. The Company will host a conference call for analysts and investors on November 12, 2021, at 8:30 a.m. Eastern Time, as previously announced on October 13, 2021. 2021 Third Quarter Financial and Operational Highlights (All results are compared to prior year quarterly period unless otherwise noted)
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FOR IMMEDIATE RELEASE Kingstone Announces 2021 Third Quarter Financial Results Board Declares Quarterly Dividend Kingston, NY — November 11, 2021 – Kingstone Companies, Inc. (Nasdaq: KINS) (the “Company” or “Kingstone”), a Northeast regional property and casualty insurance holding company, today announced its financial results for the quarter ended September 30, 2021. The Company will host a conference call for analysts and investors on November 12, 2021, at 8:30 a.m. Eastern Time, as previously announced on October 13, 2021. 2021 Third Quarter Financial and Operational Highlights (All results are compared to prior year quarterly period unless otherwise noted)

| · |

| · | | Quarterly Dividend of 0.04 per share | | The Company announced that its Board of Directors declared a quarterly dividend of 0.04 per share payable on December 15, 2021 to stockholders of record at the close of business on November 30, 2021. | | __________ |

| 1 These measures are not based on accounting principles generally accepted in the United States (“GAAP”) and are defined and reconciled below to the most directly comparable GAAP measures. |

All values are in US Dollars.

Management Commentary Barry Goldstein, Kingstone’s Chief Executive Officer, elaborated on the Company’s results: “Along with every other shareholder I am disappointed in the results. Even with weather being outside of our control, never before had there been a single calendar quarter with three separate storms each resulting in more than $1 million of loss. These Catastrophe losses and loss adjustment expenses added 33 points to our combined ratio this quarter. Our core losses were higher than expected as well, much of which I believe is a Covid-19 impact. We are a business that’s been around, collected premiums and paid claims since 1886. We report here on our history, but as a company we are always planning for the future. We analyze and scrutinize in painstaking detail when our results don’t meet expectations. That is exactly what we are doing now. At the same time we again call out that we are continuing to see reasonable growth in new higher premium profitable business, primarily due to the restrictive actions taken by some of our competitors. We remain hyper focused on profitability, and we maintain tight underwriting standards. Our new higher rates are rolling on and will increase our earned premium and bring us a much higher average rate level. This bodes well for future profitability. Investment income increased by 12.2% during the quarter. Also of note is that our new fixed income manager has begun to restructure our portfolio, which as of the end of Q3 resulted in a higher average credit quality, better diversification, and little change to our focus on shorter duration securities. During the quarter we repurchased 88,329 shares, making the total share repurchases during 2021 219,914 shares. We also paid our 42nd consecutive quarterly dividend during Q3.” Meryl Golden, Kingstone’s Chief Operating Officer, continued: “The quarter’s high attritional loss ratio reflects two main factors. First, we have seen a continuation of increased liability claims frequency for the dwelling fire line of business. We reported this increase last quarter across our property lines but fortunately we no longer see this heightened frequency in our homeowner line. Second, we saw an increase in the number of severe fire claims in our homeowner line. Otherwise, the third quarter non-cat loss experience was higher than in 2020 but similar to prior years. Overall, it was a disappointing quarter. However, we continue to believe that we have done and are doing all of the right things to return the company to profitability.” See “Forward-Looking Statements”

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Financial Highlights Table
									Nine Months Ended

| ( in thousands except per share data) | | | 2020 | | | % Change | | | 2021 | | | 2020 | | | % Change | | |

| Direct written premiums1 | 48,865 | | $ | 45,742 | | | 6.8 | % | $ | 131,610 | | $ | 125,090 | | | 5.2 | % |

| Net written premiums1 | 41,642 | | $ | 29,995 | | | 38.8 | % | $ | 109,756 | | $ | 81,276 | | | 35.0 | % |

| Net premiums earned | 36,803 | | $ | 27,521 | | | 33.7 | % | $ | 106,829 | | $ | 81,099 | | | 31.7 | % |

| Total ceding commission revenue | (7 | ) | $ | 3,449 | | na | | | $ | 37 | | $ | 10,760 | | | -99.7 | % |

| Net investment income | 1,677 | | $ | 1,494 | | | 12.2 | % | $ | 5,138 | | $ | 4,772 | | | 7.7 | % |

| Net gains (losses) on investments | 205 | | $ | 2,108 | | | -90.3 | % | $ | 5,480 | | $ | (1,639 | ) | | na | | | U.S. GAAP Net loss | (10,618 | ) | $ | (1,228 | ) | | -764.7 | % | $ | (9,606 | ) | $ | (2,064 | ) | | -365.4 | % |

| U.S. GAAP Diluted (loss) per share | (1.01 | ) | $ | (0.12 | ) | | -741.7 | % | $ | (0.90 | ) | $ | (0.19 | ) | | -373.7 | % | | Comprehensive (loss) income | (11,539 | ) | $ | (302 | ) | | -3720.9 | % | $ | (13,279 | ) | $ | 2,185 | | | na | |

| Net operating loss 1 | (10,780 | ) | $ | (2,893 | ) | | -272.6 | % | $ | (13,935 | ) | $ | (769 | ) | | -1712.1 | % |

| Net operating loss1 per share | (1.02 | ) | $ | (0.27 | ) | | -277.8 | % | $ | (1.31 | ) | $ | (0.07 | ) | | -1771.4 | % | | Return on average equity (annualized) | -50.6 | % | | -5.5 | % | | -45.1 pts | | | -15.0 | % | | 3.1 | % | | -18.1 pts | | | Net loss ratio | 97.1 | % | | 73.1 | % | | 24 pts | | | 74.0 | % | | 60.8 | % | | 13.2 pts | |

| Net underwriting expense ratio | 39.3 | % | | 38.8 | % | | 0.5 pts | | | 41.0 | % | | 38.9 | % | | 2.1 pts | |

| Net combined ratio | 136.4 | % | | 111.9 | % | | 24.5 pts | | | 115.0 | % | | 99.7 | % | | 15.3 pts | | | Effect of catastrophes and prior year loss | | | | | | | | | | | | | | | | | |

| development on net combined ratio1 | 33.1 pts | | | 31.1 pts | | | 2.0 pts | | | 11.5 pts | | | 12.5 pts | | | -1.0 pts | | | Net combined ratio excluding effect of | | | | | | | | | | | | | | | | | |

| development1 | 103.3 | % | | 80.8 | % | | 22.5 pts | | | 103.5 | % | | 87.2 | % | | 16.3 pts | | | 1 These measures are not based on GAAP and are defined and reconciled below to the most directly comparable GAAP measures. | | | | | | | | | | | | | | | | | | | 2021 Third Quarter Financial Review Net income: There was a net loss of 10.6 million during the three-month period ended September 30, 2021, compared to a net loss of 1.2 million in the prior year period. The increased net loss in the latest three-month period can be attributed to a 24.0 point increase in net loss ratio and a 1.9 million decrease in gains on investments. The net loss ratio was 97.1% for the three-month period ended September 30, 2021, compared to 73.1 % in the prior year period. Earnings (Loss) per share (“EPS”): Kingstone reported a net loss of (1.01) per diluted share for the three months ended September 30, 2021, compared to a net loss of (0.12) per diluted share for the three months ended September 30, 2020. EPS for the three-month periods ended September 30, 2021 and 2020 was based on 10.5 million and 10.7 million weighted average diluted shares outstanding, respectively. | | | | | | | | | | | | | | | | | |

All values are in US Dollars.

3

Direct Written Premiums,^1^ Net Written Premiums^1^ and Net Premiums Earned Direct written premiums^1^ for the third quarter of 2021 were $48.9 million, an increase of $3.2 million or 6.8% from $45.7 million in the prior year period. The increase is primarily attributable to a $2.4 million increase in premiums from our personal lines business and a $0.8 million increase in livery physical damage as the economy continues to reopen and more drivers return to work. Net written premiums^1^ increased 38.8% to $41.6 million during the three-month period ended September 30, 2021 from $30.0 million in the prior year period. The increase in the third quarter was attributable to the exit from the 25% personal lines quota share treaty on December 30, 2020. Net premiums earned for the quarter ended September 30, 2021 increased 33.7% to $36.8 million, compared to $27.5 million for the quarter ended September 30, 2020. The increase was attributable to the exit from the 25% personal lines quota share treaty on December 30, 2020, partially offset by the decrease of $0.2 million in commercial lines premiums, a line of business from which the Company completed its run-off in September 2020. Net Loss Ratio: For the quarter ended September 30, 2021, the Company’s net loss ratio was 97.1%, compared to 73.1% in the prior year period. The loss ratio is higher than the prior year period mainly due to a continuation of increased liability claims frequency for the dwelling fire line of business as well as an increase in the number of severe fire claims in the homeowner line. Otherwise, the third quarter non-cat loss experience was higher than 2020 but similar to prior years. Net Underwriting Expense Ratio: For the quarter ended September 30, 2021, the net underwriting expense ratio was 39.3% as compared to 38.8% in the prior year period, an increase of 0.5 percentage points. The 0.5 percentage point increase is primarily attributable to the exit from the 25% personal lines quota share treaty and the decrease in provisional ceding commissions from the prior year quota share. In addition, there was an increase in IT and Professional Services expenses related to Kingstone 2.0 initiatives. ____________________ ^1^These measures are not based on GAAP and are defined and reconciled below to the most directly comparable GAAP measures. Balance Sheet / Investment Portfolio Kingstone’s cash and investment holdings were $246.0 million at September 30, 2021 compared to $222.3 million at September 30, 2020. The Company’s investment holdings are comprised primarily of investment grade corporate, mortgage-backed and municipal securities, with fixed income investments representing approximately 77.3% of total investments at September 30, 2021 and 81.3% at September 30, 2020. The Company’s effective duration on its fixed-income portfolio is 4.3 years. Net investment income increased 12.2% to $1.7 million for the third quarter of 2021 from $1.5 million in the prior year period.

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Accumulated Other Comprehensive Income/Loss (AOCI), net of tax As of September 30, 2021, AOCI was 6.2 million compared to 9.0 million at September 30, 2020. The decrease in AOCI at September 30, 2021 of 2.8 million is attributable to the decrease in realized gains and the increase in interest rates since September 30, 2020. Share Repurchase Program Pursuant to the Company’s share repurchase program announced in March 2021, during the first nine months of 2021, the Company repurchased 216,914 shares at a purchase price of 1,667,109, or an average of 7.69 per share. Book Value The Company’s book value per share at September 30, 2021 was 7.43, a decline of 11.2% compared to 8.37 at September 30, 2020 and a decline of 15.0% from the December 31, 2020 amount.
		30-Jun-21		****	31-Mar-21		****	31-Dec-20		****	****	30-Sep-20

| Book Value Per Share | 7.43 | $ | 8.52 | | $ | 8.34 | | $ | 8.74 | | $ | 8.37 | | | % Increase from specified period to 9/30/21 | | | -12.8 | % | | -10.9 | % | | -15.0 | % | | -11.2 | % | | FOR ADDITIONAL INFORMATION PLEASE VISIT OUR WEBSITE AT WWW.KINGSTONECOMPANIES.COM. | | | | | | | | | | | | | | | Conference Call Details Management will discuss the Company’s operations and financial results in a conference call on Friday, November 12, 2021, at 8:30 a.m. ET. The dial-in numbers are: (877) 407-3105 (U.S.) (201) 493-6794 (International) Accompanying Webcast The call will be simultaneously webcast over the Internet via the Kingstone website or by clicking on the conference call link: Kingstone Companies Q3 2021 Earnings Call Webcast The webcast will be archived and accessible for approximately 30 days. | | | | | | | | | | | | | | | Definitions and Non-GAAP Measures Direct written premiums represent the total premiums charged on policies issued by the Company during the respective fiscal period. Net premiums written are direct written premiums less premiums ceded to reinsurers. Net premiums earned, the GAAP measure most comparable to direct written premiums and net premiums written, are net premiums written that are pro-rata earned during the fiscal period presented. All of the Company’s policies are written for a twelve-month period. Management uses direct written premiums and net premiums written, along with other measures, to gauge the Company’s performance and evaluate results. | | | | | | | | | | | | | |

All values are in US Dollars.

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Net operating income (loss) - is net income (loss) exclusive of realized investment gains (losses), net of tax. Net income (loss) is the GAAP measure most closely comparable to net operating income (loss).<br> <br><br> <br>Management uses net operating income (loss) along with other measures to gauge the Company’s performance and evaluate results, which can be skewed when including realized investment gains (losses), and may vary significantly between periods. Net operating income (loss) is provided as supplemental information, not as a substitute for net income (loss) and does not reflect the Company’s overall profitability.<br> <br><br> <br>Net combined ratio excluding effect of catastrophes and prior year loss development - is a non-GAAP ratio, which is computed as the difference between GAAP net combined ratio and the effect of catastrophes and prior year loss development on the net combined ratio.<br> <br><br> <br>We believe that these ratios are useful to investors and they are used by management to reveal the trends in our business that may be obscured by catastrophe losses and prior year loss development. Catastrophe losses cause our loss ratios to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on the net loss ratio and net combined ratio. Prior year loss development can cause our loss ratio to vary significantly between periods and separating this information allows us to better compare the results for the current accident period over time. We believe these measures are useful for investors to evaluate these components separately and in the aggregate when reviewing our underwriting performance. We also provide them to facilitate a comparison to our outlook on the net combined ratio excluding the effect of catastrophes and prior year loss development. The most directly comparable GAAP measure is the net combined ratio. The net combined ratio excluding the effect of catastrophes and prior year loss development should not be considered a substitute for the net combined ratio and does not reflect the Company’s net combined ratio.
The table below reconciles direct written premiums and net written premiums to net premiums earned for the periods presented:
	For the Three Months Ended											For the Nine Months Ended

| | 2021 | | | 2020 | | | Change | | % Change | | | 2021 | | | 2020 | | | Change | | % Change | |

| Direct and Net Written Premiums Reconciliation: | | | | | | | | | | | | | | | | | | | | | | | Direct written premiums | $ | 48,865 | | $ | 45,742 | | | | | 6.8 | % | $ | 131,610 | | $ | 125,090 | | | | 5.2 | % |

| Ceded written premiums | | (7,223 | ) | | (15,747 | ) | | | | (54.1 | )% | | (21,854 | ) | | (43,814 | ) | | | (50.1 | )% | | Net written premiums | | 41,642 | | | 29,995 | | | | | 38.8 | % | | 109,756 | | | 81,276 | | | | 35.0 | % |

Change in unearned premiums		(4,839	)		(2,474	)		)		95.6	%		(2,927	)		(177	)		)	1,553.7	%

All values are in US Dollars.

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The following table reconciles net operating loss to net loss for the periods indicated:
		Three Months Ended						Three Months Ended						Nine Months Ended						Nine Months Ended

| | (000’s except per common share amounts and percentages) | | | | | | | | | | | | | | | | | | | | | | | | |

	Net Loss and Diluted Loss per Common Share Reconciliation:
	Net realized (gain) loss on investments		(205	)					(2,108	)					(5,480	)					1,639

| | Less tax (expense) benefit on net realized (gain) loss | | (43 | ) | | | | | (443 | ) | | | | | (1,151 | ) | | | | | 344 | | | | | | | Net realized (gain) loss on investments, net of taxes | | (162 | ) | $ | (0.02 | ) | | (1,665 | ) | $ | (0.16 | ) | | (4,329 | ) | $ | (0.41 | ) | | 1,295 | | $ | 0.12 | | | | Net operating loss | $ | (10,780 | ) | $ | (1.02 | ) | $ | (2,893 | ) | $ | (0.27 | ) | $ | (13,935 | ) | $ | (1.31 | ) | $ | (769 | ) | $ | (0.07 | ) | | | Weighted average diluted shares outstanding | | 10,523,515 | | | | | | 10,673,077 | | | | | | 10,622,988 | | | | | | 10,737,853 | | | | | | (Components may not sum to totals due to rounding) | | | | | | | | | | | | | | | | | | | | | | | | | |

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The following table reconciles the net combined ratio excluding catastrophes and prior year loss development to the net combined ratio for the periods presented:
	For the Three Months Ended									For the Nine Months Ended

| | 2021 | | **** | 2020 | | **** | Percentage Point Change | | | 2021 | | **** | 2020 | | **** | Percentage Point Change | | | |

Net Combined Ratio Excluding Catastrophes and Prior Year Development Reconciliation:
Effect of catastrophe losses and prior year development

| Catastrophe losses | | 33.1 | % | | 31.5 | % | | 1.6 | pts | | 11.5 | % | | 12.8 | % | | (1.3 | ) | pts |

| Prior year development | | 0.0 | % | | -0.4 | % | | 0.4 | pts | | 0.0 | % | | -0.3 | % | | 0.3 | | pts |

| Effect of catastrophe losses and prior year development on net loss and loss adjustment expenses | | 33.1 | % | | 31.1 | % | | 2.0 | pts | | 11.5 | % | | 12.5 | % | | (1.0 | ) | pts |

| Net underwriting expense ratio | | 0.0 | % | | 0.0 | % | | - | pts | | 0.0 | % | | 0.0 | % | | - | | pts |

Total effect of catastrophe losses and prior year development		33.1	%		31.1	%		2.0	pts		11.5	%		12.5	%		(1.0	)	pts
The following table reconciles the net combined ratio excluding catastrophes to the net combined ratio for the periods presented:
	For the Three Months Ended									For the Nine Months Ended

| | 2021 | | **** | 2020 | | **** | Percentage Point Change | | | 2021 | | **** | 2020 | | **** | Percentage Point Change | | | |

Net Combined Ratio Excluding Catastrophes Reconciliation:
Catastrophe losses		33.1	%		31.5	%		1.6	pts		11.5	%		12.8	%		(1.3	)	pts
Net combined ratio		136.4	%		111.9	%		24.5	pts		115.0	%		99.7	%		15.3		pts

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The following table summarizes gross and net written premiums, net premiums earned, net loss and loss adjustment expenses and net loss ratio by major product type, which were determined based primarily on similar economic characteristics and risks of loss.
		For the Three Months Ended						For the Nine Months Ended

| | | 2021 | | | 2020 | | | 2021 | | | 2020 | | |

| Personal lines(3) | | $ | 45,984,939 | | $ | 43,640,603 | | $ | 124,593,302 | | $ | 119,598,207 | |

| Livery physical damage | | | 2,813,571 | | | 2,045,746 | | | 6,836,999 | | | 5,466,552 | |

| Other(1) | | | 66,659 | | | 62,664 | | | 180,485 | | | 192,395 | |

| Total without commercial lines | | | 48,865,169 | | | 45,749,013 | | | 131,610,786 | | | 125,257,154 | |

| Commercial lines (in run-off effective July 2019)(2) | | | - | | | (6,848 | ) | | (856 | ) | | (167,583 | ) |

Total gross premiums written		$	48,865,169		$	45,742,165		$	131,609,930		$	125,089,571

| Personal lines(3) | | $ | 38,762,235 | | $ | 27,916,850 | | $ | 102,741,368 | | $ | 76,231,996 | |

| Livery physical damage | | | 2,813,571 | | | 2,045,746 | | | 6,836,999 | | | 5,466,552 | |

| Other(1) | | | 65,837 | | | 50,625 | | | 178,021 | | | 151,783 | |

| Total without commercial lines | | | 41,641,643 | | | 30,013,221 | | | 109,756,388 | | | 81,850,331 | |

| Commercial lines (in run-off effective July 2019)(2) | | | - | | | (18,271 | ) | | (856 | ) | | (574,228 | ) |

Total net premiums written		$	41,641,643		$	29,994,950		$	109,755,532		$	81,276,103

| Personal lines(3) | | $ | 34,715,708 | | $ | 25,220,883 | | $ | 101,054,415 | | $ | 71,434,757 | |

| Livery physical damage | | | 2,028,786 | | | 2,014,458 | | | 5,598,605 | | | 6,803,475 | |

| Other(1) | | | 58,757 | | | 49,939 | | | 176,731 | | | 149,087 | |

| Total without commercial lines | | | 36,803,251 | | | 27,285,280 | | | 106,829,751 | | | 78,387,319 | |

| Commercial lines (in run-off effective July 2019)(2) | | | - | | | 235,801 | | | (856 | ) | | 2,712,068 | |

Total net premiums earned		$	36,803,251		$	27,521,081		$	106,828,895		$	81,099,387

| Personal lines | | $ | 32,958,728 | | $ | 18,657,325 | | $ | 72,353,668 | | $ | 41,810,950 | |

| Livery physical damage | | | 1,766,989 | | | 648,520 | | | 3,469,465 | | | 1,798,210 | |

| Other(1) | | | 180,995 | | | 29,104 | | | 434,816 | | | 5,465 | |

| Unallocated loss adjustment expenses | | | 867,675 | | | 827,031 | | | 2,783,547 | | | 2,839,359 | |

| Total without commercial lines | | | 35,774,387 | | | 20,161,980 | | | 79,041,496 | | | 46,453,984 | |

| Commercial lines (in run-off effective July 2019)(2) | | | (34,152 | ) | | (44,005 | ) | | 18,621 | | | 2,863,443 | |

Total net loss and loss adjustment expenses		$	35,740,235		$	20,117,975		$	79,060,117		$	49,317,427

| Personal lines | | | 94.9 | % | | 74.0 | % | | 71.6 | % | | 58.5 | % |

| Livery physical damage | | | 87.1 | % | | 32.2 | % | | 62.0 | % | | 26.4 | % |

| Other(1) | | | 308.0 | % | | 58.3 | % | | 246.0 | % | | 3.7 | % |

| Total without commercial lines | | | 97.2 | % | | 73.9 | % | | 74.0 | % | | 59.3 | % | | Commercial lines (in run-off effective July 2019)(2) | | na | | | | -18.7 | % | | 74.0 | % | | 105.6 | % |

| Total | | | 97.1 | % | | 73.1 | % | | 74.0 | % | | 60.8 | % | | 1. | “Other” includes, among other things, premiums and loss and loss adjustment expenses from our participation in a mandatory state joint underwriting association and loss and loss adjustment expenses from commercial auto. | | | | | | | | | | | | |

| 2. | In July 2019, the Company decided that it will no longer underwrite Commercial Liability risks. See discussions above regarding the discontinuation of this line of business. | | | | | | | | | | | | |

| 3. | See discussion with regard to “Direct Written Premiums, Net Written Premiums and Net Premiums Earned” above. | | | | | | | | | | | | |

| 4. | See discussions above with regard to “Net Loss Ratio”. | | | | | | | | | | | | |

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KINGSTONE COMPANIES, INC. AND SUBSIDIARIES
	Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited)

		2021			2020			2021			2020

| | Net premiums earned | $ | 36,803,251 | | $ | 27,521,081 | | $ | 106,828,895 | | $ | 81,099,387 | |

| | Ceding commission revenue | | (7,276 | ) | | 3,448,774 | | | 37,400 | | | 10,760,087 | |

| | Net investment income | | 1,676,596 | | | 1,494,086 | | | 5,137,867 | | | 4,771,936 | |

| | Net gains (losses) on investments | | 204,534 | | | 2,107,876 | | | 5,480,202 | | | (1,638,674 | ) |

| | Other income | | 280,869 | | | 250,654 | | | 577,261 | | | 772,672 | |

	Total revenues		38,957,974			34,822,471			118,061,625			95,765,408

| | Loss and loss adjustment expenses | | 35,740,235 | | | 20,117,975 | | | 79,060,117 | | | 49,317,427 | |

| | Commission expense | | 8,201,935 | | | 8,036,298 | | | 24,711,115 | | | 23,652,765 | |

| | Other underwriting expenses | | 6,562,743 | | | 6,346,846 | | | 19,722,705 | | | 19,434,110 | |

| | Other operating expenses | | 855,499 | | | 1,038,453 | | | 3,141,077 | | | 3,364,483 | |

| | Depreciation and amortization | | 820,091 | | | 710,181 | | | 2,480,085 | | | 2,070,435 | |

| | Interest expense | | 456,545 | | | 456,545 | | | 1,369,635 | | | 1,369,635 | |

| | Total expenses | | 52,637,048 | | | 36,706,298 | | | 130,484,734 | | | 99,208,855 | | | | Loss before taxes | | (13,679,074 | ) | | (1,883,827 | ) | | (12,423,109 | ) | | (3,443,447 | ) |

| | Income tax benefit | | (3,060,809 | ) | | (655,971 | ) | | (2,817,108 | ) | | (1,379,578 | ) |

	Net loss		(10,618,265	)		(1,227,856	)		(9,606,001	)		(2,063,869	)

| | Gross change in unrealized (losses) gains on available-for-sale-securities | | (829,297 | ) | | 1,778,478 | | | (3,578,413 | ) | | 5,938,600 | | | | Reclassification adjustment for gains included in net loss | | (335,669 | ) | | (606,969 | ) | | (1,071,439 | ) | | (560,696 | ) |

| | Net change in unrealized (losses) gains | | (1,164,966 | ) | | 1,171,509 | | | (4,649,852 | ) | | 5,377,904 | |

| | Income tax benefit (expense) related to items of other comprehensive (loss) income | | 244,643 | | | (246,017 | ) | | 976,470 | | | (1,129,359 | ) |

| | Other comprehensive (loss) income, net of tax | | (920,323 | ) | | 925,492 | | | (3,673,382 | ) | | 4,248,545 | | | | Comprehensive (loss) income | $ | (11,538,588 | ) | $ | (302,364 | ) | $ | (13,279,383 | ) | $ | 2,184,676 | | | | Loss per common share: | | | | | | | | | | | | |

| | Basic | $ | (1.01 | ) | $ | (0.12 | ) | $ | (0.90 | ) | $ | (0.19 | ) |

	Diluted	$	(1.01	)	$	(0.12	)	$	(0.90	)	$	(0.19	)

| | Basic | | 10,523,515 | | | 10,673,077 | | | 10,622,988 | | | 10,737,853 | |

| | Diluted | | 10,523,515 | | | 10,673,077 | | | 10,622,988 | | | 10,737,853 | | | | Dividends declared and paid per common share | $ | 0.0400 | | $ | 0.0400 | | $ | 0.1200 | | $ | 0.1425 | |

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KINGSTONE COMPANIES, INC. AND SUBSIDIARIES

| | | | | 2020 | | |

| | | | | | | |

| | Fixed-maturity securities, held-to-maturity, at amortized cost (fair value of 9,699,504 at September 30, 2021 and 8,194,824 at December 31, 2020) | 9,166,983 | | $ | 7,368,815 | |

| | Fixed-maturity securities, available-for-sale, at fair value (amortized cost of 145,452,017 at September 30, 2021 and 145,045,584 at December 31, 2020) | 153,289,242 | | | 157,549,272 | |

| | Equity securities, at fair value (cost of 37,545,241 at September 30, 2021 and 32,571,166 at December 31, 2020) | 40,060,872 | | | 34,413,313 | |

| | Other investments | 7,379,111 | | | 3,518,626 | |

| | Total investments | 209,896,208 | | | 202,850,026 | |

| | Cash and cash equivalents | 36,108,088 | | | 19,463,742 | |

| | Premiums receivable, net | 11,309,319 | | | 11,819,639 | |

| | Reinsurance receivables, net | 22,962,014 | | | 45,460,729 | |

| | Deferred policy acquisition costs | 21,261,916 | | | 20,142,515 | |

| | Intangible assets | 500,000 | | | 500,000 | |

| | Property and equipment, net | 8,526,162 | | | 8,083,123 | |

| | Other assets | 9,662,834 | | | 9,262,493 | |

| | Total assets | 320,226,541 | | $ | 317,582,267 | | | | Liabilities | | | | | |

| | Loss and loss adjustment expense reserves | 101,044,118 | | $ | 82,801,228 | |

| | Unearned premiums | 92,653,778 | | | 90,009,272 | |

| | Advance premiums | 5,325,514 | | | 2,660,354 | |

| | Reinsurance balances payable | 4,266,092 | | | 6,979,735 | |

| | Deferred ceding commission revenue | 87,846 | | | 93,519 | |

| | Accounts payable, accrued expenses and other liabilities | 8,700,342 | | | 8,433,233 | |

| | Deferred income taxes, net | 537,848 | | | 4,156,913 | |

| | Long-term debt, net | 29,779,746 | | | 29,647,611 | |

| | Preferred stock, .01 par value; authorized 2,500,000 shares | - | | | - | |

| | Common stock, .01 par value; authorized 20,000,000 shares; issued 11,947,619 shares at September 30, 2021 and 11,871,307 shares at December 31, 2020; outstanding 10,476,213 shares at September 30, 2021 and 10,616,815 shares at December 31, 2020 | 119,476 | | | 118,713 | |

| | Capital in excess of par | 72,025,035 | | | 70,769,165 | |

| | Accumulated other comprehensive income | 6,206,680 | | | 9,880,062 | |

| | Retained earnings | 5,047,547 | | | 15,928,345 | |

| | | 83,398,738 | | | 96,696,285 | |

| | Treasury stock, at cost, 1,471,406 shares at September 30, 2021 and 1,196,109 shares at December 31, 2020 | (5,567,481 | ) | | (3,895,883 | ) |

| | Total stockholders' equity | 77,831,257 | | | 92,800,402 | | | | Total liabilities and stockholders' equity | 320,226,541 | | $ | 317,582,267 | |

All values are in US Dollars.

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About Kingstone Companies, Inc.<br> <br><br> <br>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.<br> <br><br> <br>Forward-Looking Statements<br> <br><br> <br>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 management’s 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. For more details on factors that could affect expectations, see Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2020 filed with the Securities and Exchange Commission under “Factors That May Affect Future Results and Financial Condition.” These risks and uncertainties include, without limitation, the following:
	·	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.
	·	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.
	·	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 a significant portion 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.
	·	Actual claims incurred may exceed current reserves established for claims, which may adversely affect our operating results and financial condition.
	·	We rely on our information technology and telecommunication systems, and the failure of these systems could materially and adversely affect our business.
Kingstone undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.<br> <br><br> <br>CONTACT:<br> <br>Kingstone Companies, Inc. ****<br> <br>Amanda M. Goldstein<br> <br>Investor Relations Director<br> <br>(516) 960-1319

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