Gabriel McClare's questions to Kingstone Companies Inc (KINS) leadership • Q3 2024
Question
Private investor Gabriel McClare asked about Kingstone's upcoming pricing strategy, including the magnitude of rate changes and whether recent hurricanes would influence reinsurance costs. He also sought clarity on capital allocation, specifically the potential shareholder dilution from the at-the-market (ATM) stock offering used to pay down debt.
Answer
Executive Meryl Golden explained that while recent hurricanes had no direct claims impact, they will likely increase reinsurance costs for the next treaty year. She detailed recent rate increases of 5% for the Select homeowners product and 10% for dwelling fire, stating the company is confident in its current pricing adequacy. Regarding dilution, Golden emphasized the strategic priority of paying down debt expeditiously to de-risk the company but stated she could not provide a specific projection on the number of shares to be sold via the ATM.