KINS - Kingstone stock slips as inflationary pressure weigh on Q3 results; suspends dividend

• Kingstone ( NASDAQ: KINS ) reports net premiums earned decreased 20.2% to $29.4M in Q3 , due to the inception of a 30% personal lines quota share treaty on December 30, 2021.
• Net loss ratio was 75.0% compared to 97.1% due to reduced catastrophe events.
• Net underwriting expense ratio decreased to 36.9% from 39.3%.
• Net combined ratio decreased to 111.9% from 136.4% driven by the decrease in the loss ratio.
• COO comment: "In the midst of a challenging macro environment, we remained focused on operating with financial discipline, reducing expenses across the business by 2.4 points in the quarter and almost 4 points on a year-to-date basis. We are pleased that our cost cutting measures are taking hold and are actively working to drive further expense reduction, including through the retirement of our legacy systems."
• In order to preserve capital to potentially help fund this refinancing and the resulting debt service requirements,
• The board of directors has suspended quarterly common stock dividend effective immediately to preserve capital.
• The company anticipates cash savings of $1.7M on an annual basis from the dividend suspension.
• Since the start of 2022, KINS lost more than 75% .

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