P&C insurance holding company Kingstone Companies has estimated it will incur net pre-tax catastrophe losses for the first quarter of 2023 of $3.72 million.
The losses for the period apply to Kingstone’s wholly-owned subsidiary, Kingstone Insurance Company, and stem from two events that occurred during the quarter.
It follows a similar Q4 bill of $3.66 million, which was driven primarily by Winter Storm Elliot.
Kingstone faced ratings downgrades from both KBRA and AM Best last year due to the level of catastrophe losses it had been reporting.
KBRA noted that the company’s 2021 results had been problematic due to catastrophe losses, most notably the remnants of Hurricane Ida, although it acknowledged that Kingstone had also undertaken “major initiatives” to improve profitability, including a withdrawal from commercial lines and rate increases on homeowners’ business.
However, operating losses did continue into 2022, which led the company to enter an exchange agreement to refinance debt.
Last year, Kingstone also finalised a new 30% personal lines quota share reinsurance treaty for 2021-2022, and added another layer of protection to its existing excess of loss (XoL) programme.
