P&C insurance holding company Kingstone Companies has estimated net pre-tax catastrophe losses for the fourth quarter of 2022 of $3.66 million, primarily driven by Winter Storm Elliot.
Barry Goldstein, Kingstone’s Chairman and Chief Executive Officer suggested that the footprint of Winter Storm Elliott expanded to each of the geographies in which Kingstone operates, including New York, where the firm has the majority of its business.
Accordingly, Kingstone’s business was impacted by severe and widespread weather-related residential property losses, consistent with industry trends.
The storm caused significant damage across much of the country, even stretching northward into Canada and south over the Mexican border.
But while this was a very wide spreadsheet storm, impacting 42 US states, data from modelling agencies suggests that this will not be a significant event for the reinsurance market, particularly when compared to February 2021’s winter storm Uri.
Karen Clark & Company’s early estimate of $5.4 billion would put Elliott more in line with the winter storms of 1983 and 1989, with 50% of the loss expected to fall to commercial insurers.
Meanwhile, Goldstein continued, “I am delighted to share that Kingstone achieved a milestone in 2022 with annual direct written premiums exceeding $200 million for the first time.
“The increase in our premiums at a higher rate than the growth in exposures is representative of the progress we are making on our go-forward plan to return Kingstone to profitability.”
Kingstone is set to hold its 2022 Q4 and full year financial results conference call on March 31. The earnings announcement is scheduled for release shortly after the stock markets close on Thursday, March 30th.
