Delaware
|
|
36-2476480
|
(State or other jurisdiction of incorporation or
organization)
|
|
(I.R.S. Employer Identification Number)
|
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
|
Large accelerated filer
|
|
☐
|
Accelerated filer
|
|
☑
|
Non-accelerated filer
|
|
☐
|
Smaller reporting company
|
|
☑
|
|
|
|
Emerging growth company
|
|
☐
|
|
PAGE
|
|
|
PART I — FINANCIAL INFORMATION
|
2
|
2
|
|
2
|
|
3
|
|
4
|
|
5
|
|
6
|
|
34
|
|
59
|
|
59
|
|
|
|
PART II — OTHER INFORMATION
|
61
|
61
|
|
61
|
|
62
|
|
62
|
|
62
|
|
62
|
|
62
|
|
63
|
|
March 31,
|
December 31,
|
|
2020
|
2019
|
|
(unaudited)
|
|
Assets
|
|
|
|
|
|
Fixed-maturity
securities, held-to-maturity, at amortized cost (fair value
of $4,136,710
at March 31, 2020 and
$4,124,767
at December 31, 2019)
|
$3,826,404
|
$3,825,952
|
Fixed-maturity
securities, available-for-sale, at fair value (amortized cost
of $152,675,779
at March 31, 2020 and
$162,202,355
at December 31, 2019)
|
151,879,894
|
168,236,181
|
Equity
securities, at fair value (cost of $22,430,037 at March 31, 2020
and $22,624,668
at December 31, 2019)
|
18,368,893
|
24,661,382
|
Other
investments
|
1,987,522
|
2,584,913
|
Total
investments
|
176,062,713
|
199,308,428
|
Cash
and cash equivalents
|
25,586,789
|
32,391,485
|
Premiums
receivable, net
|
11,913,123
|
12,706,411
|
Reinsurance
receivables, net
|
42,709,055
|
40,750,538
|
Deferred
policy acquisition costs
|
19,571,888
|
20,634,378
|
Intangible
assets
|
500,000
|
500,000
|
Property
and equipment, net
|
7,365,654
|
7,620,636
|
Deferred
income taxes, net
|
1,347,699
|
311,052
|
Other
assets
|
7,477,334
|
6,979,884
|
Total assets
|
$292,534,255
|
$321,202,812
|
|
|
|
Liabilities
|
|
|
Loss
and loss adjustment expense reserves
|
$77,851,099
|
$80,498,611
|
Unearned
premiums
|
84,478,538
|
90,383,238
|
Advance
premiums
|
3,143,879
|
3,191,512
|
Reinsurance
balances payable
|
5,337,287
|
11,714,724
|
Deferred
ceding commission revenue
|
6,935,401
|
7,735,398
|
Accounts
payable, accrued expenses and other liabilities
|
8,409,856
|
9,986,317
|
Long-term
debt, net
|
29,515,476
|
29,471,431
|
Total
liabilities
|
215,671,536
|
232,981,231
|
|
|
|
Commitments and Contingencies (Note 11)
|
|
|
|
|
|
Stockholders' Equity
|
|
|
Preferred
stock, $.01 par value; authorized 2,500,000 shares
|
-
|
-
|
Common
stock, $.01 par value; authorized 20,000,000 shares; issued
11,851,266 shares at March 31, 2020 and 11,824,889 at December 31,
2019; outstanding 10,781,393 shares at March 31, 2020 and
10,797,450 shares at December 31, 2019
|
118,512
|
118,248
|
Capital
in excess of par
|
69,533,150
|
69,133,918
|
Accumulated
other comprehensive (loss) income
|
(626,601)
|
4,768,870
|
Retained
earnings
|
10,792,934
|
16,913,097
|
|
79,817,995
|
90,934,133
|
Treasury
stock, at cost, 1,069,873 shares at March 31, 2020
and
1,027,439 shares at December 31, 2019
|
(2,955,276)
|
(2,712,552)
|
Total stockholders' equity
|
76,862,719
|
88,221,581
|
|
|
|
Total liabilities and stockholders' equity
|
$292,534,255
|
$321,202,812
|
Three months ended March 31,
|
2020
|
2019
|
|
|
|
Revenues
|
|
|
Net
premiums earned
|
$26,941,450
|
$29,595,889
|
Ceding
commission revenue
|
3,831,099
|
1,277,683
|
Net
investment income
|
1,665,844
|
1,623,712
|
Net
(losses) gains on investments
|
(6,444,418)
|
2,035,363
|
Other
income
|
629,619
|
365,901
|
Total
revenues
|
26,623,594
|
34,898,548
|
|
|
|
Expenses
|
|
|
Loss
and loss adjustment expenses
|
16,385,821
|
29,134,224
|
Commission
expense
|
7,899,191
|
6,853,416
|
Other
underwriting expenses
|
6,761,792
|
6,135,991
|
Other
operating expenses
|
1,563,620
|
971,172
|
Depreciation
and amortization
|
687,094
|
602,332
|
Interest
expense
|
456,545
|
456,545
|
Total
expenses
|
33,754,063
|
44,153,680
|
|
|
|
Loss
from operations before income taxes
|
(7,130,469)
|
(9,255,132)
|
Income
tax benefit
|
(1,686,266)
|
(1,919,942)
|
Net loss
|
(5,444,203)
|
(7,335,190)
|
|
|
|
Other comprehensive (loss) income, net of tax
|
|
|
Gross
change in unrealized (losses) gains
on available-for-sale-securities
|
(6,727,489)
|
4,188,716
|
|
|
|
Reclassification
adjustment for (gains) losses included
in net loss
|
(102,222)
|
22,431
|
Net
change in unrealized (losses) gains
|
(6,829,711)
|
4,211,147
|
|
|
|
Income
tax benefit (expense) related to items of
other comprehensive (loss) income
|
1,434,240
|
(884,341)
|
Other comprehensive (loss) income, net of tax
|
(5,395,471)
|
3,326,806
|
|
|
|
Comprehensive loss
|
$(10,839,674)
|
$(4,008,384)
|
|
|
|
Loss per common share:
|
|
|
Basic
|
$(0.50)
|
$(0.68)
|
Diluted
|
$(0.50)
|
$(0.68)
|
|
|
|
Weighted average common shares outstanding
|
|
|
Basic
|
10,807,841
|
10,757,843
|
Diluted
|
10,807,841
|
10,757,843
|
|
|
|
Dividends declared and paid per common share
|
$0.0625
|
$0.1000
|
|
Preferred Stock
|
Common Stock
|
|
Accumulated Other
|
|
Treasury
Stock
|
|
|||
|
Shares
|
Amount
|
Shares
|
Amount
|
Capital in
Excess of Par
|
Comprehensive
Income (Loss)
|
Retained
Earnings
|
Shares
|
Amount
|
Total
|
Balance,
January 1, 2019
|
-
|
$-
|
11,775,148
|
$117,751
|
$67,763,940
|
$(2,884,313)
|
$26,380,816
|
1,027,439
|
$(2,712,552)
|
$88,665,642
|
Stock-based
compensation
|
-
|
-
|
-
|
-
|
309,882
|
-
|
-
|
-
|
-
|
309,882
|
Vesting of
restricted stock awards
|
-
|
-
|
27,593
|
275
|
(275)
|
-
|
-
|
-
|
-
|
-
|
Shares
deducted from restricted stock
|
|
|
|
|
|
|
|
|
|
|
awards for
payment of withholding taxes
|
-
|
-
|
(6,553)
|
(64)
|
(115,943)
|
-
|
-
|
-
|
-
|
(116,007)
|
Dividends
|
-
|
-
|
-
|
-
|
-
|
-
|
(1,075,962)
|
-
|
-
|
(1,075,962)
|
Net
loss
|
-
|
-
|
-
|
-
|
-
|
-
|
(7,335,190)
|
-
|
-
|
(7,335,190)
|
Change in
unrealized gains on available-
|
|
|
|
|
|
|
|
|
|
|
for-sale
securities, net of tax
|
-
|
-
|
-
|
-
|
-
|
3,326,806
|
-
|
-
|
-
|
3,326,806
|
Balance, March
31, 2019
|
-
|
$-
|
11,796,188
|
$117,962
|
$67,957,604
|
$442,493
|
$17,969,664
|
1,027,439
|
$(2,712,552)
|
$83,775,171
|
|
Preferred Stock
|
Common Stock
|
|
Accumulated
Other
|
|
Treasury
Stock
|
|
|||
|
Shares
|
Amount
|
Shares
|
Amount
|
Capital
in
Excess of Par
|
Comprehensive
Income (Loss)
|
Retained
Earnings
|
Shares
|
Amount
|
Total
|
Balance,
January 1, 2020
|
-
|
$-
|
11,824,889
|
$118,248
|
$69,133,918
|
$4,768,870
|
$16,913,097
|
1,027,439
|
$(2,712,552)
|
$88,221,581
|
Stock-based
compensation
|
-
|
-
|
-
|
-
|
487,450
|
-
|
-
|
-
|
-
|
487,450
|
Vesting of
restricted stock awards
|
-
|
-
|
38,866
|
387
|
(387)
|
-
|
-
|
-
|
-
|
-
|
Shares
deducted from restricted stock
|
|
|
|
|
|
|
|
|
|
|
awards for
payment of withholding taxes
|
-
|
-
|
(12,489)
|
(123)
|
(87,831)
|
-
|
-
|
-
|
-
|
(87,954)
|
Acquisition of
treasury stock
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
42,434
|
(242,724)
|
(242,724)
|
Dividends
|
-
|
-
|
-
|
-
|
-
|
-
|
(675,960)
|
-
|
-
|
(675,960)
|
Net
loss
|
-
|
-
|
-
|
-
|
-
|
-
|
(5,444,203)
|
-
|
-
|
(5,444,203)
|
Change in
unrealized losses on available-
|
|
|
|
|
|
|
|
|
|
|
for-sale
securities, net of tax
|
-
|
-
|
-
|
-
|
-
|
(5,395,471)
|
-
|
-
|
-
|
(5,395,471)
|
Balance, March
31, 2020
|
-
|
$-
|
11,851,266
|
$118,512
|
$69,533,150
|
$(626,601)
|
$10,792,934
|
1,069,873
|
$(2,955,276)
|
$76,862,719
|
Three months ended March 31,
|
2020
|
2019
|
|
|
|
Cash flows from operating
activities:
|
|
|
Net
loss
|
$(5,444,203)
|
$(7,335,190)
|
Adjustments
to reconcile net loss to net cash flows provided
by
(used in) operating activities:
|
|
|
Net
(gains) losses on sale of investments
|
(274,581)
|
25,192
|
Net
unrealized losses (gains) of equity investments
|
6,121,608
|
(1,767,835)
|
Net
unrealized losses (gains) of other investments
|
597,391
|
(292,720)
|
Depreciation
and amortization
|
687,094
|
602,332
|
Bad
debts
|
35,737
|
36,824
|
Amortization
of bond premium, net
|
105,189
|
118,568
|
Amortization
of discount and issuance costs on long-term debt
|
44,045
|
44,045
|
Stock-based
compensation
|
487,450
|
309,882
|
Deferred
income tax expense
|
397,593
|
510,533
|
(Increase)
decrease in operating assets:
|
|
|
Premiums
receivable, net
|
757,551
|
(286,973)
|
Reinsurance
receivables, net
|
(1,958,517)
|
209,478
|
Deferred
policy acquisition costs
|
1,062,490
|
(246,544)
|
Other
assets
|
(521,521)
|
(3,666,830)
|
Increase
(decrease) in operating liabilities:
|
|
|
Loss
and loss adjustment expense reserves
|
(2,647,512)
|
12,913,165
|
Unearned
premiums
|
(5,904,700)
|
627,872
|
Advance
premiums
|
(47,633)
|
956,784
|
Reinsurance
balances payable
|
(6,377,437)
|
(731,445)
|
Deferred
ceding commission revenue
|
(799,997)
|
58,710
|
Accounts
payable, accrued expenses and other liabilities
|
(1,576,461)
|
616,556
|
Net cash flows (used in) provided by operating
activities
|
(15,256,414)
|
2,702,404
|
|
|
|
Cash flows from investing
activities:
|
|
|
Purchase
- fixed-maturity securities available-for-sale
|
(961,000)
|
(6,094,835)
|
Purchase
- equity securities
|
(5,220,778)
|
(1,604,615)
|
Sale
and redemption - fixed-maturity securities
held-to-maturity
|
-
|
400,000
|
Sale
or maturity - fixed-maturity securities
available-for-sale
|
10,553,818
|
1,505,382
|
Sale
- equity securities
|
5,518,428
|
246,047
|
Acquisition
of property and equipment
|
(432,112)
|
(1,048,604)
|
Other
investing activities
|
-
|
(287,733)
|
Net cash flows provided
by (used in) investing activities
|
9,458,356
|
(6,884,358)
|
|
|
|
Cash flows from financing
activities:
|
|
|
Withholding
taxes paid on vested retricted stock awards
|
(87,954)
|
(116,007)
|
Purchase
of treasury stock
|
(242,724)
|
-
|
Dividends
paid
|
(675,960)
|
(1,075,962)
|
Net cash flows used in
financing activities
|
(1,006,638)
|
(1,191,969)
|
|
|
|
Decrease
in cash and cash equivalents
|
$(6,804,696)
|
$(5,373,923)
|
Cash
and cash equivalents, beginning of period
|
32,391,485
|
21,138,403
|
Cash and cash equivalents, end of period
|
$25,586,789
|
$15,764,480
|
|
|
|
Supplemental disclosures of cash flow
information:
|
|
|
Cash
paid for income taxes
|
$-
|
$-
|
Cash
paid for interest
|
$-
|
$-
|
|
March 31, 2020
|
|||||
|
|
|
|
|
|
Net
|
|
Cost or
|
Gross
|
Gross Unrealized Losses
|
Estimated
|
Unrealized
|
|
|
Amortized
|
Unrealized
|
Less than 12
|
More than 12
|
Fair
|
Gains/
|
Category
|
Cost
|
Gains
|
Months
|
Months
|
Value
|
(Losses)
|
|
|
|
|
|
|
|
Fixed-Maturity Securities:
|
|
|
|
|
|
|
U.S. Treasury securities and obligations of U.S.
government corporations
and agencies
|
$5,033,879
|
$102,361
|
$-
|
$-
|
$5,136,240
|
$102,361
|
|
|
|
|
|
|
|
Political
subdivisions of States, Territories
and Possessions
|
9,139,221
|
275,738
|
-
|
-
|
9,414,959
|
275,738
|
|
|
|
|
|
|
|
Corporate and other bonds Industrial
and miscellaneous
|
112,871,652
|
2,876,429
|
(2,258,459)
|
-
|
113,489,622
|
617,970
|
|
|
|
|
|
|
|
Residential mortgage and other asset
backed securities (1)
|
25,631,027
|
292,497
|
(938,478)
|
(1,145,973)
|
23,839,073
|
(1,791,954)
|
Total
|
$152,675,779
|
$3,547,025
|
$(3,196,937)
|
$(1,145,973)
|
$151,879,894
|
$(795,885)
|
|
December 31, 2019
|
|||||
|
|
|
|
|
|
Net
|
|
Cost or
|
Gross
|
Gross Unrealized Losses
|
Estimated
|
Unrealized
|
|
|
Amortized
|
Unrealized
|
Less than 12
|
More than 12
|
Fair
|
Gains/
|
Category
|
Cost
|
Gains
|
Months
|
Months
|
Value
|
(Losses)
|
|
|
|
|
|
|
|
Fixed-Maturity Securities:
|
|
|
|
|
|
|
U.S. Treasury securities and obligations
of U.S. government corporations
and agencies
|
$7,037,856
|
$23,244
|
$-
|
$-
|
$7,061,100
|
$23,244
|
|
|
|
|
|
|
|
Political
subdivisions of States, Territories
and Possessions
|
9,151,293
|
181,835
|
(11,316)
|
-
|
9,321,812
|
170,519
|
|
|
|
|
|
|
|
Corporate and other bonds Industrial
and miscellaneous
|
119,874,573
|
5,777,624
|
(16,685)
|
(13,473)
|
125,622,039
|
5,747,466
|
|
|
|
|
|
|
|
Residential mortgage and other asset
backed securities (1)
|
26,138,633
|
437,841
|
(68,793)
|
(276,451)
|
26,231,230
|
92,597
|
Total
|
$162,202,355
|
$6,420,544
|
$(96,794)
|
$(289,924)
|
$168,236,181
|
$6,033,826
|
|
March 31, 2020
|
December 31, 2019
|
||
|
Amortized
|
Estimated
|
Amortized
|
Estimated
|
Remaining Time to
Maturity
|
Cost
|
Fair Value
|
Cost
|
Fair Value
|
|
|
|
|
|
Less
than one year
|
$12,900,401
|
$12,937,879
|
$11,986,401
|
$12,025,804
|
One
to five years
|
44,309,018
|
44,695,085
|
49,715,422
|
51,000,025
|
Five
to ten years
|
65,324,015
|
66,293,522
|
69,850,104
|
74,410,275
|
More
than 10 years
|
4,511,318
|
4,114,335
|
4,511,795
|
4,568,847
|
Residential
mortgage and other asset backed securities
|
25,631,027
|
23,839,073
|
26,138,633
|
26,231,230
|
Total
|
$152,675,779
|
$151,879,894
|
$162,202,355
|
$168,236,181
|
|
March 31, 2020
|
|||
|
|
Gross
|
Gross
|
|
|
|
Unrealized
|
Unrealized
|
Estimated
|
Category
|
Cost
|
Gains
|
Losses
|
Fair Value
|
|
|
|
|
|
Equity Securities:
|
|
|
|
|
Preferred
stocks
|
$7,535,068
|
$7,870
|
$(1,113,367)
|
$6,429,571
|
Common
stocks, mutual funds, and
exchange traded funds
|
14,894,969
|
137,242
|
(3,092,889)
|
11,939,322
|
Total
|
$22,430,037
|
$145,112
|
$(4,206,256)
|
$18,368,893
|
|
December 31, 2019
|
|||
|
|
Gross
|
Gross
|
|
|
|
Unrealized
|
Unrealized
|
Estimated
|
Category
|
Cost
|
Gains
|
Losses
|
Fair Value
|
|
|
|
|
|
Equity Securities:
|
|
|
|
|
Preferred
stocks
|
$8,374,424
|
$339,257
|
$(11,794)
|
$8,701,887
|
Common
stocks, mutual funds, and
exchange traded funds
|
14,250,244
|
1,982,878
|
(273,627)
|
15,959,495
|
Total
|
$22,624,668
|
$2,322,135
|
$(285,421)
|
$24,661,382
|
|
March 31, 2020
|
December 31, 2019
|
||||
|
|
Gross
|
|
|
Gross
|
|
|
|
Unrealized
|
Estimated
|
|
Unrealized
|
Estimated
|
Category
|
Cost
|
Losses
|
Fair Value
|
Cost
|
Gains
|
Fair Value
|
|
|
|
|
|
|
|
Other Investments:
|
|
|
|
|
|
|
Hedge
fund
|
$1,999,381
|
$(11,859)
|
$1,987,522
|
$1,999,381
|
$585,532
|
$2,584,913
|
Total
|
$1,999,381
|
$(11,859)
|
$1,987,522
|
$1,999,381
|
$585,532
|
$2,584,913
|
|
March 31, 2020
|
|||||
|
|
|
|
|
|
|
|
Cost or
|
Gross
|
Gross Unrealized Losses
|
Estimated
|
Net
|
|
|
Amortized
|
Unrealized
|
Less than 12
|
More than 12
|
Fair
|
Unrealized
|
Category
|
Cost
|
Gains
|
Months
|
Months
|
Value
|
Gains
|
|
|
|
|
|
|
|
Held-to-Maturity Securities:
|
|
|
|
|
|
|
U.S.
Treasury securities
|
$729,561
|
$162,483
|
$-
|
$-
|
$892,044
|
$162,483
|
|
|
|
|
|
|
|
Political
subdivisions of States,
|
|
|
|
|
|
|
Territories
and Possessions
|
998,573
|
43,857
|
-
|
-
|
1,042,430
|
43,857
|
|
|
|
|
|
|
|
Corporate
and other bonds
|
|
|
|
|
|
|
Industrial
and miscellaneous
|
2,098,270
|
106,196
|
(2,230)
|
-
|
2,202,236
|
103,966
|
|
|
|
|
|
|
|
Total
|
$3,826,404
|
$312,536
|
$(2,230)
|
$-
|
$4,136,710
|
$310,306
|
|
December 31, 2019
|
|||||
|
|
|
|
|
|
|
|
Cost or
|
Gross
|
Gross Unrealized Losses
|
Estimated
|
Net
|
|
|
Amortized
|
Unrealized
|
Less than 12
|
More than 12
|
Fair
|
Unrealized
|
Category
|
Cost
|
Gains
|
Months
|
Months
|
Value
|
Gains
|
|
|
|
|
|
|
|
Held-to-Maturity Securities:
|
|
|
|
|
|
|
U.S.
Treasury securities
|
$729,550
|
$151,002
|
$-
|
$-
|
$880,552
|
$151,002
|
|
|
|
|
|
|
|
Political
subdivisions of States,
|
|
|
|
|
|
|
Territories
and Possessions
|
998,619
|
51,021
|
-
|
-
|
1,049,640
|
51,021
|
|
|
|
|
|
|
|
Corporate
and other bonds
|
|
|
|
|
|
|
Industrial
and miscellaneous
|
2,097,783
|
97,627
|
(835)
|
-
|
2,194,575
|
96,792
|
|
|
|
|
|
|
|
Total
|
$3,825,952
|
$299,650
|
$(835)
|
$-
|
$4,124,767
|
$298,815
|
|
March 31, 2020
|
December 31, 2019
|
||
|
Amortized
|
Estimated
|
Amortized
|
Estimated
|
Remaining Time to
Maturity
|
Cost
|
Fair Value
|
Cost
|
Fair Value
|
|
|
|
|
|
Less
than one year
|
$500,000
|
$497,770
|
$500,000
|
$499,165
|
One
to five years
|
2,099,588
|
2,220,096
|
2,099,268
|
2,215,640
|
Five
to ten years
|
620,255
|
664,805
|
620,134
|
655,923
|
More
than 10 years
|
606,561
|
754,039
|
606,550
|
754,039
|
Total
|
$3,826,404
|
$4,136,710
|
$3,825,952
|
$4,124,767
|
|
Three months ended
|
|
|
March 31,
|
|
|
2020
|
2019
|
|
|
|
Income:
|
|
|
Fixed-maturity
securities
|
$1,447,938
|
$1,526,870
|
Equity
securities
|
253,073
|
207,144
|
Cash
and cash equivalents
|
44,223
|
40,401
|
Total
|
1,745,234
|
1,774,415
|
Expenses:
|
|
|
Investment
expenses
|
79,390
|
150,703
|
Net
investment income
|
$1,665,844
|
$1,623,712
|
|
Three months ended
|
|
|
March 31,
|
|
|
2020
|
2019
|
Realized Gains (Losses)
|
|
|
|
|
|
Fixed-maturity securities:
|
|
|
Gross
realized gains
|
$204,225
|
$6,002
|
Gross
realized losses
|
(32,342)
|
(28,433)
|
|
171,883
|
(22,431)
|
|
|
|
Equity securities:
|
|
|
Gross
realized gains
|
316,513
|
3,200
|
Gross
realized losses
|
(213,815)
|
(5,961)
|
|
102,698
|
(2,761)
|
|
|
|
Net
realized gains (losses)
|
274,581
|
(25,192)
|
|
|
|
Unrealized (Losses) Gains
|
|
|
|
|
|
Equity securities:
|
|
|
Gross
gains
|
-
|
1,767,835
|
Gross
losses
|
(6,121,608)
|
-
|
|
(6,121,608)
|
1,767,835
|
|
|
|
Other investments:
|
|
|
Gross
gains
|
-
|
292,720
|
Gross
losses
|
(597,391)
|
-
|
|
(597,391)
|
292,720
|
|
|
|
Net
unrealized (losses) gains
|
(6,718,999)
|
2,060,555
|
|
|
|
Net
(losses) gains on investments
|
$(6,444,418)
|
$2,035,363
|
|
March 31, 2020
|
|||||||
|
Less than 12 months
|
12 months or more
|
Total
|
|||||
|
Estimated
|
|
No. of
|
Estimated
|
|
No. of
|
Estimated
|
|
|
Fair
|
Unrealized
|
Positions
|
Fair
|
Unrealized
|
Positions
|
Fair
|
Unrealized
|
Category
|
Value
|
Losses
|
Held
|
Value
|
Losses
|
Held
|
Value
|
Losses
|
Fixed-Maturity Securities:
|
|
|
|
|
|
|
|
|
U.S.
Treasury securities
|
|
|
|
|
|
|
|
|
and
obligations of U.S.
|
|
|
|
|
|
|
|
|
government
corporations
|
|
|
|
|
|
|
|
|
and
agencies
|
$-
|
$-
|
-
|
$-
|
$-
|
-
|
$-
|
$-
|
|
|
|
|
|
|
|
|
|
Political
subdivisions of
|
|
|
|
|
|
|
|
|
States,
Territories and
|
|
|
|
|
|
|
|
|
Possessions
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
Corporate
and other
|
|
|
|
|
|
|
|
|
bonds
industrial and
|
|
|
|
|
|
|
|
|
miscellaneous
|
35,409,999
|
(2,258,459)
|
50
|
-
|
-
|
-
|
35,409,999
|
(2,258,459)
|
|
|
|
|
|
|
|
|
|
Residential
mortgage and other
|
|
|
|
|
|
|
|
|
asset
backed securities
|
6,067,674
|
(938,478)
|
13
|
10,286,307
|
(1,145,973)
|
17
|
16,353,981
|
(2,084,451)
|
|
|
|
|
|
|
|
|
|
Total
fixed-maturity
|
|
|
|
|
|
|
|
|
securities
|
$41,477,673
|
$(3,196,937)
|
63
|
$10,286,307
|
$(1,145,973)
|
17
|
$51,763,980
|
$(4,342,910)
|
|
December 31, 2019
|
|||||||
|
Less than 12 months
|
12 months or more
|
Total
|
|||||
|
Estimated
|
|
No. of
|
Estimated
|
|
No. of
|
Estimated
|
|
|
Fair
|
Unrealized
|
Positions
|
Fair
|
Unrealized
|
Positions
|
Fair
|
Unrealized
|
Category
|
Value
|
Losses
|
Held
|
Value
|
Losses
|
Held
|
Value
|
Losses
|
|
|
|
|
|
|
|
|
|
Fixed-Maturity Securities:
|
|
|
|
|
|
|
|
|
U.S.
Treasury securities
|
|
|
|
|
|
|
|
|
and
obligations of U.S.
|
|
|
|
|
|
|
|
|
government
corporations
|
|
|
|
|
|
|
|
|
and
agencies
|
$-
|
$-
|
-
|
$-
|
$-
|
-
|
$-
|
$-
|
|
|
|
|
|
|
|
|
|
Political
subdivisions of
|
|
|
|
|
|
|
|
|
States,
Territories and
|
|
|
|
|
|
|
|
|
Possessions
|
3,067,428
|
(11,316)
|
3
|
-
|
-
|
-
|
3,067,428
|
(11,316)
|
|
|
|
|
|
|
|
|
|
Corporate
and other
|
|
|
|
|
|
|
|
|
bonds
industrial and
|
|
|
|
|
|
|
|
|
miscellaneous
|
3,730,478
|
(16,685)
|
7
|
1,300,915
|
(13,473)
|
3
|
5,031,393
|
(30,158)
|
|
|
|
|
|
|
|
|
|
Residential
mortgage and other
|
|
|
|
|
|
|
|
|
asset
backed securities
|
5,862,636
|
(68,793)
|
5
|
13,534,768
|
(276,451)
|
21
|
19,397,404
|
(345,244)
|
|
|
|
|
|
|
|
|
|
Total
fixed-maturity
|
|
|
|
|
|
|
|
|
securities
|
$12,660,542
|
$(96,794)
|
15
|
$14,835,683
|
$(289,924)
|
24
|
$27,496,225
|
$(386,718)
|
|
March 31, 2020
|
|||
|
Level 1
|
Level 2
|
Level 3
|
Total
|
Fixed-maturity securities available-for-sale
|
|
|
|
|
U.S.
Treasury securities
|
|
|
|
|
and
obligations of U.S.
|
|
|
|
|
government
corporations
|
|
|
|
|
and
agencies
|
$5,136,240
|
$-
|
$-
|
$5,136,240
|
|
|
|
|
|
Political
subdivisions of
|
|
|
|
|
States,
Territories and
|
|
|
|
|
Possessions
|
-
|
9,414,959
|
-
|
9,414,959
|
|
|
|
|
|
Corporate
and other
|
|
|
|
|
bonds
industrial and
|
|
|
|
|
miscellaneous
|
111,099,020
|
2,390,602
|
-
|
113,489,622
|
|
|
|
|
|
Residential
mortgage backed securities
|
-
|
23,839,073
|
-
|
23,839,073
|
Total
fixed maturities
|
116,235,260
|
35,644,634
|
-
|
151,879,894
|
Equity securities
|
18,368,893
|
-
|
-
|
18,368,893
|
Total
investments
|
$134,604,153
|
$35,644,634
|
$-
|
$170,248,787
|
|
December 31, 2019
|
|||
|
Level 1
|
Level 2
|
Level 3
|
Total
|
Fixed-maturity securities available-for-sale
|
|
|
|
|
U.S.
Treasury securities
|
|
|
|
|
and
obligations of U.S.
|
|
|
|
|
government
corporations
|
|
|
|
|
and
agencies
|
$7,061,100
|
$-
|
$-
|
$7,061,100
|
|
|
|
|
|
Political
subdivisions of
|
|
|
|
|
States,
Territories and
|
|
|
|
|
Possessions
|
-
|
9,321,812
|
-
|
9,321,812
|
|
|
|
|
|
Corporate
and other
|
|
|
|
|
bonds
industrial and
|
|
|
|
|
miscellaneous
|
123,010,772
|
2,611,267
|
-
|
125,622,039
|
|
|
|
|
|
Residential
mortgage backed securities
|
-
|
26,231,230
|
-
|
26,231,230
|
Total
fixed maturities
|
130,071,872
|
38,164,309
|
-
|
168,236,181
|
Equity securities
|
24,661,382
|
-
|
-
|
24,661,382
|
Total
investments
|
$154,733,254
|
$38,164,309
|
$-
|
$192,897,563
|
Category
|
March 31,
2020
|
December 31,
2019
|
|
|
|
Other Investments:
|
|
|
Hedge
fund
|
$1,987,522
|
$2,584,913
|
Total
|
$1,987,522
|
$2,584,913
|
|
March 31, 2020
|
|||
|
Level 1
|
Level 2
|
Level 3
|
Total
|
Long-term debt
|
|
|
|
|
|
|
|
|
|
Senior
Notes due 2022
|
$-
|
$27,281,870
|
$-
|
$27,281,870
|
|
December 31, 2019
|
|||
|
Level 1
|
Level 2
|
Level 3
|
Total
|
Long-term debt
|
|
|
|
|
|
|
|
|
|
Senior
Notes due 2022
|
$-
|
$27,313,994
|
$-
|
$27,313,994
|
|
March 31, 2020
|
December 31, 2019
|
||
|
Carrying
|
Estimated
|
Carrying
|
Estimated
|
|
Value
|
Fair Value
|
Value
|
Fair Value
|
|
|
|
|
|
Fixed-maturity
securities-held-to maturity
|
$3,826,404
|
$4,136,710
|
$3,825,952
|
$4,124,767
|
Cash
and cash equivalents
|
$25,586,789
|
$25,586,789
|
$32,391,485
|
$32,391,485
|
Premiums
receivable, net
|
$11,913,123
|
$11,913,123
|
$12,706,411
|
$12,706,411
|
Reinsurance
receivables, net
|
$42,709,055
|
$42,709,055
|
$40,750,538
|
$40,750,538
|
Real
estate, net of accumulated depreciation
|
$2,275,307
|
$2,705,000
|
$2,292,743
|
$2,705,000
|
Reinsurance
balances payable
|
$5,337,287
|
$5,337,287
|
$11,714,724
|
$11,714,724
|
|
Direct
|
Assumed
|
Ceded
|
Net
|
|
|
|
|
|
Three months ended March 31, 2020
|
|
|
|
|
Premiums
written
|
$36,696,929
|
$-
|
$(13,506,255)
|
$23,190,674
|
Change
in unearned premiums
|
5,904,700
|
-
|
(2,153,924)
|
3,750,776
|
Premiums
earned
|
$42,601,629
|
$-
|
$(15,660,179)
|
$26,941,450
|
|
|
|
|
|
Three months ended March 31, 2019
|
|
|
|
|
Premiums
written
|
$37,488,548
|
$(34)
|
$(7,127,909)
|
$30,360,605
|
Change
in unearned premiums
|
(628,067)
|
195
|
(136,844)
|
(764,716)
|
Premiums
earned
|
$36,860,481
|
$161
|
$(7,264,753)
|
$29,595,889
|
|
Three months ended
|
|
|
March 31,
|
|
|
2020
|
2019
|
|
|
|
Balance
at beginning of period
|
$80,498,611
|
$56,197,106
|
Less
reinsurance recoverables
|
(15,728,224)
|
(15,671,247)
|
Net
balance, beginning of period
|
64,770,387
|
40,525,859
|
|
|
|
Incurred
related to:
|
|
|
Current
year
|
16,512,475
|
24,655,975
|
Prior
years
|
(126,654)
|
4,478,249
|
Total
incurred
|
16,385,821
|
29,134,224
|
|
|
|
Paid
related to:
|
|
|
Current
year
|
5,787,129
|
7,731,086
|
Prior
years
|
13,777,236
|
8,405,440
|
Total
paid
|
19,564,365
|
16,136,526
|
|
|
|
Net
balance at end of period
|
61,591,843
|
53,523,557
|
Add
reinsurance recoverables
|
16,259,256
|
15,586,714
|
Balance
at end of period
|
$77,851,099
|
$69,110,271
|
|
|
|
|
|
|
|
|
|
|
|
As of
|
|
|
Incurred Loss and Allocated Loss Adjustment Expenses, Net of
Reinsurance
|
March 31, 2020
|
||||||||||
|
For the Years Ended December 31,
|
For the three months ended
|
|
Cumulative Number of Reported Claims by
|
||||||||
Accident Year
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
March 31,
2020
|
IBNR
|
Accident
Year
|
|
(Unaudited 2011 - 2019)
|
(Unaudited)
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
$7,603
|
$7,678
|
$8,618
|
$9,440
|
$9,198
|
$9,066
|
$9,144
|
$9,171
|
$9,127
|
$9,128
|
$(1)
|
1,914
|
2012
|
|
9,539
|
9,344
|
10,278
|
10,382
|
10,582
|
10,790
|
10,791
|
11,015
|
10,792
|
87
|
4,704
|
2013
|
|
|
10,728
|
9,745
|
9,424
|
9,621
|
10,061
|
10,089
|
10,607
|
10,607
|
(12)
|
1,561(1)
|
2014
|
|
|
|
14,193
|
14,260
|
14,218
|
14,564
|
15,023
|
16,381
|
16,376
|
289
|
2,136
|
2015
|
|
|
|
|
22,340
|
21,994
|
22,148
|
22,491
|
23,386
|
23,042
|
154
|
2,555
|
2016
|
|
|
|
|
|
26,062
|
24,941
|
24,789
|
27,887
|
27,961
|
538
|
2,877
|
2017
|
|
|
|
|
|
|
31,605
|
32,169
|
35,304
|
35,873
|
631
|
3,380
|
2018
|
|
|
|
|
|
|
|
54,455
|
56,351
|
58,073
|
2,391
|
4,188
|
2019
|
|
|
|
|
|
|
|
|
75,092
|
73,173
|
12,027
|
4,365
|
2020
|
|
|
|
|
|
|
|
|
|
15,760
|
6,202
|
731
|
|
|
|
|
|
|
|
|
|
Total
|
$280,784
|
|
|
All Lines of Business
|
|
|
|
|
|
|
|
|
|
|
||
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative
Paid Loss and Allocated Loss Adjustment Expenses, Net of
Reinsurance
|
|
|
|||||||||
|
|
For the
three
|
|
|
||||||||
|
For the
Years Ended December 31,
|
months
ended
|
|
|
||||||||
Accident
Year
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
March
31, 2020
|
|
|
|
(Unaudited 2011 -
2019)
|
(Unaudited)
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
$3,740
|
$5,117
|
$6,228
|
$7,170
|
$8,139
|
$8,540
|
$8,702
|
$8,727
|
$8,789
|
$8,991
|
|
|
2012
|
|
3,950
|
5,770
|
7,127
|
8,196
|
9,187
|
10,236
|
10,323
|
10,428
|
10,442
|
|
|
2013
|
|
|
3,405
|
5,303
|
6,633
|
7,591
|
8,407
|
9,056
|
9,717
|
9,728
|
|
|
2014
|
|
|
|
5,710
|
9,429
|
10,738
|
11,770
|
13,819
|
14,901
|
15,150
|
|
|
2015
|
|
|
|
|
12,295
|
16,181
|
18,266
|
19,984
|
21,067
|
21,448
|
|
|
2016
|
|
|
|
|
|
15,364
|
19,001
|
21,106
|
23,974
|
24,371
|
|
|
2017
|
|
|
|
|
|
|
16,704
|
24,820
|
28,693
|
28,969
|
|
|
2018
|
|
|
|
|
|
|
|
32,383
|
44,516
|
46,178
|
|
|
2019
|
|
|
|
|
|
|
|
|
40,933
|
50,983
|
|
|
2020
|
|
|
|
|
|
|
|
|
|
5,469
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
$221,729
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
liability for upaid loss and allocated loss adjustment expenses for
the accident years presented
|
$ 59,055
|
|
|
||||||||
|
All outstanding
liabilities before 2011, net of
reinsurance
|
100
|
|
|
||||||||
|
Liabilities for
loss and allocated loss adjustment expenses, net of
reinsurance
|
$ 59,154
|
|
|
|
As of
|
(in thousands)
|
March 31,
2020
|
Liabilities
for loss and loss adjustment expenses, net of
reinsurance
|
$59,154
|
Total
reinsurance recoverable on unpaid losses
|
16,259
|
Unallocated
loss adjustment expenses
|
2,437
|
Total
gross liability for loss and LAE reserves
|
$77,851
|
|
Treaty Year
|
||
|
December 15, 2019
|
July 1, 2019
|
July 1, 2018
|
|
to
|
to
|
to
|
Line of Business
|
December 31, 2020
|
December 14, 2019
|
June 30, 2019
|
|
|
|
|
Personal Lines:
|
|
|
|
Homeowners,
dwelling fire and
|
|
|
|
and
canine legal liability
|
|
|
|
Quota
share treaty:
|
|
|
|
Percent
ceded
|
25%
|
None
|
10%
|
|
Treaty
Year
|
||
Line of
Business
|
December
15, 2019
to
June 30,
2020
|
July 1,
2019
to
December
14, 2019
|
July
1, 2018
to
June 30,
2019
|
|
|
|
|
Personal Lines:
|
|
|
|
Homeowners,
dwelling fire and
|
|
|
|
and
canine legal liability
|
|
|
|
Quota
share treaty:
|
|
|
|
Risk
retained on intial $1,000,000
|
|
|
|
of
losses
|
$750,000
|
$1,000,000
|
$900,000
|
Losses
per occurrence subject to
|
|
|
|
quota
share reinsurance coverage
|
$1,000,000
|
None
|
$1,000,000
|
Excess
of loss coverage and facultative
|
|
|
|
facility
coverage (1)
|
$9,000,000
|
$9,000,000
|
$9,000,000
|
|
in excess
of
|
in excess of
|
in excess of
|
|
$1,000,000
|
$1,000,000
|
$1,000,000
|
Total
reinsurance coverage per occurrence
|
$9,250,000
|
$9,000,000
|
$9,100,000
|
Losses
per occurrence subject to
|
|
|
|
reinsurance
coverage
|
$10,000,000
|
$10,000,000
|
$10,000,000
|
Expiration
date
|
June 30,
2020
|
June 30, 2020
|
June 30, 2020
|
|
|
|
|
Catastrophe Reinsurance:
|
|
|
|
Initial
loss subject to personal lines
|
|
|
|
quota
share treaty
|
$7,500,000
|
None
|
$5,000,000
|
Risk
retained per catastrophe
|
|
|
|
occurrence
(2)
|
$5,625,000
|
$7,500,000
|
$4,500,000
|
Catastrophe
loss coverage in excess of
|
|
|
|
quota
share coverage (3)
|
$602,500,000
|
$602,500,000
|
$445,000,000
|
Reinstatement
premium
|
|
|
|
protection
(4) (5)
|
Yes
|
Yes
|
Yes
|
|
Treaty Year
|
|
|
July 1, 2019
|
July 1, 2018
|
|
to
|
to
|
Line of Business
|
June 30, 2020
|
June 30, 2019
|
|
|
|
Personal Lines:
|
|
|
|
|
|
Personal
Umbrella
|
|
|
Quota
share treaty:
|
|
|
Percent
ceded - first $1,000,000 of coverage
|
90%
|
90%
|
Percent
ceded - excess of $1,000,000 dollars of coverage
|
100%
|
100%
|
Risk
retained
|
$100,000
|
$100,000
|
Total
reinsurance coverage per occurrence
|
$4,900,000
|
$4,900,000
|
Losses
per occurrence subject to quota share reinsurance
coverage
|
$5,000,000
|
$5,000,000
|
Expiration
date
|
June 30, 2020
|
June 30, 2019
|
|
|
|
Commercial Lines:
|
|
|
General
liability commercial policies
|
|
|
Quota
share treaty
|
None
|
None
|
Risk
retained
|
$750,000
|
$750,000
|
Excess
of loss coverage above risk retained
|
$3,750,000
|
$3,750,000
|
|
in excess of
|
in excess of
|
|
$750,000
|
$750,000
|
Total
reinsurance coverage per occurrence
|
$3,750,000
|
$3,750,000
|
Losses
per occurrence subject to reinsurance coverage
|
$4,500,000
|
$4,500,000
|
|
|
|
Commercial
Umbrella
|
|
|
Quota
share treaty:
|
None
|
|
Percent
ceded - first $1,000,000 of coverage
|
|
90%
|
Percent
ceded - excess of $1,000,000 of coverage
|
|
100%
|
Risk
retained
|
|
$100,000
|
Total
reinsurance coverage per occurrence
|
|
$4,900,000
|
Losses
per occurrence subject to quota share reinsurance
coverage
|
|
$5,000,000
|
Expiration
date
|
|
June 30, 2019
|
|
Three months ended
|
|
|
March 31,
|
|
|
2020
|
2019
|
|
|
|
Provisional
ceding commissions earned
|
$3,720,360
|
$1,317,751
|
Contingent
ceding commissions earned
|
110,739
|
(40,068)
|
|
$3,831,099
|
$1,277,683
|
|
March 31,
|
December 31,
|
|
2020
|
2019
|
|
|
|
5.50%
Senior Unsecured Notes
|
$30,000,000
|
$30,000,000
|
Discount
|
(89,244)
|
(97,325)
|
Issuance
costs
|
(395,280)
|
(431,244)
|
Long-term
debt, net
|
$29,515,476
|
$29,471,431
|
|
Three months ended,
|
||
|
March 31,
|
||
|
2020
|
|
2019
|
|
|
|
|
Dividend Yield
|
3.14%
|
|
n/a
|
Volatility
|
37.69%
|
|
n/a
|
Risk-Free Interest Rate
|
1.40%
|
|
n/a
|
Expected Life
|
2.75 years
|
|
n/a
|
Stock Options
|
Number of Shares
|
Weighted Average Exercise Price per Share
|
Weighted Average Remaining Contractual Term
|
Aggregate Intrinsic Value
|
|
|
|
|
|
Outstanding
at January 1, 2020
|
82,000
|
$8.61
|
3.38
|
$-
|
|
|
|
|
|
Granted
|
74,523
|
$7.96
|
4.84
|
$-
|
Exercised
|
-
|
$-
|
-
|
$-
|
Forfeited
|
-
|
$-
|
-
|
$-
|
|
|
|
|
|
Outstanding
at March 31, 2020
|
156,523
|
$8.30
|
3.94
|
$-
|
|
|
|
|
|
Vested
and Exercisable at March 31, 2020
|
50,000
|
$8.45
|
1.84
|
$-
|
Restricted Stock Awards
|
Shares
|
Weighted Average Grant Date Fair Value per Share
|
Aggregate Fair Value
|
|
|
|
|
Balance
at January 1, 2020
|
213,929
|
$16.51
|
$3,554,174
|
|
|
|
|
Granted
|
199,812
|
$7.94
|
$1,586,507
|
Vested
|
(38,866)
|
$18.90
|
$(734,467)
|
Forfeited
|
(3,046)
|
$15.15
|
$(46,135)
|
|
|
|
|
Balance
at March 31, 2020
|
371,829
|
$12.21
|
$4,360,079
|
|
March 31,
|
December 31,
|
|
2020
|
2019
|
|
|
|
Deferred
tax asset:
|
|
|
Net
operating loss carryovers (1)
|
$70,381
|
$1,586,247
|
Claims
reserve discount
|
797,917
|
839,959
|
Unearned
premium
|
2,945,811
|
3,105,344
|
Deferred
ceding commission revenue
|
1,456,434
|
1,624,434
|
Other
|
272,244
|
462,019
|
Total
deferred tax assets
|
5,542,787
|
7,618,003
|
|
|
|
Deferred
tax liability:
|
|
|
Investment
in KICO (2)
|
759,543
|
759,543
|
Deferred
acquisition costs
|
4,110,096
|
4,333,219
|
Intangibles
|
105,000
|
105,000
|
Depreciation
and amortization
|
318,895
|
312,298
|
Net
unrealized (losses)
gains of securities - available-for-sale
|
(1,098,446)
|
1,796,891
|
Total
deferred tax liabilities
|
4,195,088
|
7,306,951
|
|
|
|
Net
deferred income tax asset
|
$1,347,699
|
$311,052
|
|
March 31,
|
December 31,
|
|
Type of NOL
|
2020
|
2019
|
Expiration
|
|
|
|
|
Federal
only, current year
|
$-
|
$1,517,866
|
(A)
|
|
|
|
|
State
only (B)
|
1,722,611
|
1,616,568
|
December
31, 2040
|
Valuation
allowance
|
(1,652,230)
|
(1,548,187)
|
|
State
only, net of valuation allowance
|
70,381
|
68,381
|
|
|
|
|
|
Total
deferred tax asset from net operating loss carryovers
|
$70,381
|
$1,586,247
|
|
|
Three
months ended
|
|
|
March
31,
|
|
|
2020
|
2019
|
|
|
|
Weighted
average number of shares outstanding
|
10,807,841
|
10,757,843
|
|
|
|
Effect
of dilutive securities, common share equivalents:
|
|
|
Stock
options
|
-
|
-
|
Restricted
stock awards
|
-
|
-
|
|
|
|
Weighted
average number of shares outstanding,
|
|
|
used
for computing diluted earnings per share
|
10,807,841
|
10,757,843
|
|
Three months ended
|
|
|
March 31,
|
|
Lease cost
|
2020
|
2019
|
Operating
leases
|
$81,251
|
$41,342
|
Short-term
leases
|
-
|
-
|
Total
lease cost (1)
|
$81,251
|
$41,342
|
|
|
|
Other information on operating leases
|
|
|
Cash payments included in the measurement of lease
|
|
|
liability
reported in operating cash flows
|
$82,736
|
$41,379
|
Discount
rate
|
5.50%
|
5.50%
|
Weighted
average remaining lease term in years
|
5.71 years
|
5 years
|
For the Year
|
|
Ending
|
|
December 31,
|
Total
|
Remainder
of 2020
|
$102,691
|
2021
|
264,571
|
2022
|
273,831
|
2023
|
283,415
|
2024
|
140,739
|
Thereafter
|
192,916
|
Total
undiscounted lease payments
|
1,348,314
|
Less:
present value adjustment
|
54,213
|
Operating
lease liability
|
$1,203,949
|
|
Three months ended
|
Three months ended
|
||
($
in thousands)
|
March 31, 2020
|
March 31, 2019
|
||
|
|
|
|
|
Direct
Written Pemiums
|
Amount
|
Percent
|
Amount
|
Percent
|
|
|
|
|
|
Core
Independent
|
$27,145
|
79.0%
|
$26,535
|
88.3%
|
Expansion
Independent (1)
|
5,242
|
15.3%
|
3,221
|
10.7%
|
Alternative
Distribution through Cosi
|
1,979
|
5.8%
|
280
|
0.9%
|
Total
|
$34,366
|
100.0%
|
$30,036
|
100.0%
|
|
Three months ended March 31,
|
|||
($ in thousands)
|
2020
|
2019
|
Change
|
Percent
|
Revenues
|
|
|
|
|
Direct
written premiums
|
$36,697
|
$37,489
|
$(792)
|
(2.1)%
|
Assumed
written premiums
|
-
|
-
|
-
|
n/a%
|
|
36,697
|
37,489
|
(792)
|
(2.1)%
|
Ceded
written premiums
|
|
|
|
|
Ceded
to quota share treaties
|
7,098
|
2,659
|
4,439
|
166.9%
|
Ceded
to excess of loss treaties
|
495
|
404
|
91
|
22.5%
|
Ceded
to catastrophe treaties
|
5,913
|
4,065
|
1,848
|
45.5%
|
Total
ceded written premiums
|
13,506
|
7,128
|
6,378
|
89.5%
|
|
|
|
|
|
Net
written premiums
|
23,191
|
30,361
|
(7,170)
|
(23.6)%
|
|
|
|
|
|
Change
in unearned premiums
|
|
|
|
|
Direct
and assumed
|
5,905
|
(628)
|
6,533
|
(1,040.3)%
|
Ceded
to quota share treaties
|
(2,154)
|
(137)
|
(2,017)
|
1,472.3%
|
Change
in net unearned premiums
|
3,751
|
(765)
|
4,516
|
(590.3)%
|
|
|
|
|
|
Premiums
earned
|
|
|
|
|
Direct
and assumed
|
42,602
|
36,861
|
5,741
|
15.6%
|
Ceded
to reinsurance treaties
|
(15,661)
|
(7,265)
|
(8,396)
|
115.6%
|
Net
premiums earned
|
26,941
|
29,596
|
(2,655)
|
(9.0)%
|
Ceding
commission revenue
|
|
|
|
|
Excluding
the effect of catastrophes
|
3,831
|
1,278
|
2,553
|
199.8%
|
Effect
of catastrophes
|
-
|
-
|
-
|
n/a%
|
Total
ceding commission revenue
|
3,831
|
1,278
|
2,553
|
199.8%
|
Net
investment income
|
1,666
|
1,624
|
42
|
2.6%
|
Net
(losses) gains on investments
|
(6,444)
|
2,035
|
(8,479)
|
(416.7)%
|
Other
income
|
630
|
366
|
264
|
72.1%
|
Total
revenues
|
26,624
|
34,899
|
(8,275)
|
(23.7)%
|
Expenses
|
|
|
|
|
Loss
and loss adjustment expenses
|
|
|
|
|
Direct
and assumed:
|
|
|
|
|
Loss
and loss adjustment expenses excluding the effect of
catastrophes
|
21,971
|
26,643
|
(4,672)
|
(17.5)%
|
Losses
from catastrophes (1)
|
281
|
5,627
|
(5,346)
|
(95.0)%
|
Total
direct and assumed loss and loss adjustment expenses
|
22,252
|
32,270
|
(10,018)
|
(31.0)%
|
|
|
|
|
|
Ceded
loss and loss adjustment expenses:
|
|
|
|
|
Loss
and loss adjustment expenses excluding the effect of
catastrophes
|
5,784
|
2,572
|
3,212
|
124.9%
|
Losses
from catastrophes (1)
|
83
|
564
|
(481)
|
(85.3)%
|
Total
ceded loss and loss adjustment expenses
|
5,867
|
3,136
|
2,731
|
87.1%
|
|
|
|
|
|
Net
loss and loss adjustment expenses:
|
|
|
|
|
Loss
and loss adjustment expenses excluding the effect of
catastrophes
|
16,187
|
24,071
|
(7,884)
|
(32.8)%
|
Losses
from catastrophes (1)
|
198
|
5,063
|
(4,865)
|
(96.1)%
|
Net
loss and loss adjustment expenses
|
16,385
|
29,134
|
(12,749)
|
(43.8)%
|
|
|
|
|
|
Commission
expense
|
7,899
|
6,853
|
1,046
|
15.3%
|
Other
underwriting expenses
|
6,762
|
6,136
|
626
|
10.2%
|
Other
operating expenses
|
1,563
|
972
|
591
|
60.8%
|
Depreciation
and amortization
|
687
|
602
|
85
|
14.1%
|
Interest
expense
|
457
|
457
|
-
|
-%
|
Total
expenses
|
33,753
|
44,154
|
(10,401)
|
(23.6)%
|
|
|
|
|
|
Loss
before taxes
|
(7,129)
|
(9,255)
|
2,126
|
(23.0)%
|
Income
tax benefit
|
(1,686)
|
(1,920)
|
234
|
(12.2)%
|
Net loss
|
$(5,443)
|
$(7,335)
|
$1,892
|
(25.8)%
|
|
Three months ended March 31,
|
|
||
|
2020
|
2019
|
Percentage Point Change
|
Percent Change
|
|
|
|
|
|
Key ratios:
|
|
|
|
|
Net
loss ratio
|
60.8%
|
98.4%
|
(37.6)
|
(38.2)%
|
Net
underwriting expense ratio
|
39.3%
|
38.5%
|
0.8
|
2.1%
|
Net
combined ratio
|
100.1%
|
136.9%
|
(36.8)
|
(26.9)%
|
|
Three
months ended March 31,
|
|
|
2020
|
2019
|
|
("2019/2020
Treaty")
|
("2018/2019
Treaty
Year")
|
|
|
|
Quota share
reinsurance rates
|
|
|
Personal
lines
|
25%(2)
|
10%(1)
|
|
Three months ended March 31,
|
|
||
($ in thousands)
|
2020
|
2019
|
Change
|
Percent
|
|
|
|
|
|
Provisional
ceding commissions earned
|
$3,720
|
$1,318
|
$2,402
|
182.2%
|
|
|
|
|
|
Contingent
ceding commissions earned
|
|
|
|
|
Contingent
ceding commissions earned excluding
|
|
|
|
|
the
effect of catastrophes
|
111
|
(40)
|
151
|
(377.5)%
|
Effect
of catastrophes on ceding commissions earned
|
-
|
-
|
-
|
n/a
|
Contingent
ceding commissions earned
|
111
|
(40)
|
151
|
(377.5)%
|
|
|
|
|
|
Total
ceding commission revenue
|
$3,831
|
$1,278
|
$2,553
|
199.8%
|
|
Three months ended
|
|
|
|
March 31,
|
Percentage
|
|
|
2020
|
2019
|
Point Change
|
|
|
|
|
Other
underwriting expenses
|
|
|
|
Employment
costs
|
10.2%
|
8.6%
|
1.6
|
Underwriting
fees (inspections/data services)
|
3.1
|
2.5
|
0.6
|
Other
expenses
|
11.8
|
9.7
|
2.1
|
Total
other underwriting expenses
|
25.1
|
20.8
|
4.3
|
|
|
|
|
Ceding
commission revenue
|
|
|
|
Provisional
|
(13.8)
|
(4.5)
|
(9.3)
|
Contingent
|
(0.4)
|
0.1
|
(0.5)
|
Total
ceding commission revenue
|
(14.2)
|
(4.4)
|
(9.8)
|
|
|
|
|
Other
income
|
(0.9)
|
(1.1)
|
0.2
|
Commission
expense
|
29.3
|
23.2
|
6.1
|
|
|
|
|
Net
underwriting expense ratio
|
39.3%
|
38.5%
|
0.8
|
|
Three months ended
|
|
|
March 31,
|
|
|
2020
|
2019
|
Gross premiums written:
|
|
|
Personal
lines
|
$34,434,836
|
$30,098,969
|
Livery
physical damage
|
2,314,401
|
2,730,086
|
Other(1)
|
74,855
|
73,071
|
Total
without commercial lines
|
36,824,092
|
32,902,126
|
Commercial
lines (in run-off effective July 2019)(2)
|
(127,163)
|
4,586,388
|
Total
gross premiums written
|
$36,696,929
|
$37,488,514
|
|
|
|
Net premiums written:
|
|
|
Personal
lines(3)
|
$21,211,481
|
$23,503,863
|
Livery
physical damage
|
2,314,401
|
2,730,086
|
Other(1)
|
58,579
|
66,295
|
Total
without commercial lines
|
23,584,461
|
26,300,244
|
Commercial
lines (in run-off effective July 2019)(2)
|
(393,787)
|
4,060,361
|
Total
net premiums written
|
$23,190,674
|
$30,360,605
|
|
|
|
Net premiums earned:
|
|
|
Personal
lines(3)
|
$22,599,634
|
$23,420,874
|
Livery
physical damage
|
2,606,579
|
2,517,682
|
Other(1)
|
50,149
|
58,017
|
Total
without commercial lines
|
25,256,362
|
25,996,573
|
Commercial
lines (in run-off effective July 2019)(2)
|
1,685,088
|
3,599,316
|
Total
net premiums earned
|
$26,941,450
|
$29,595,889
|
|
|
|
Net loss and loss adjustment expenses(4):
|
|
|
Personal
lines
|
$12,514,568
|
$20,402,544
|
Livery
physical damage
|
780,570
|
1,217,303
|
Other(1)
|
48,797
|
150,504
|
Unallocated
loss adjustment expenses
|
769,812
|
694,650
|
Total
without commercial lines
|
14,113,747
|
22,465,001
|
Commercial
lines (in run-off effective July 2019)(2)
|
2,272,074
|
6,669,223
|
Total
net loss and loss adjustment expenses
|
$16,385,821
|
$29,134,224
|
|
|
|
Net loss ratio(4):
|
|
|
Personal
lines
|
55.4%
|
87.1%
|
Livery
physical damage
|
29.9%
|
48.4%
|
Other(1)
|
97.3%
|
259.4%
|
Total
without commercial lines
|
55.9%
|
86.4%
|
Commercial
lines (in run-off effective July 2019)(2)
|
134.8%
|
185.3%
|
Total
|
60.8%
|
98.4%
|
|
Three months ended
|
|
|
March 31,
|
|
|
2020
|
2019
|
|
|
|
Revenues
|
|
|
Net
premiums earned
|
$26,941,450
|
$29,595,889
|
Ceding
commission revenue
|
3,831,099
|
1,277,683
|
Net
investment income
|
1,665,393
|
1,599,932
|
Net
(losses) gains on investments
|
(6,309,184)
|
1,993,563
|
Other
income
|
244,974
|
314,738
|
Total
revenues
|
26,373,732
|
34,781,805
|
|
|
|
Expenses
|
|
|
Loss
and loss adjustment expenses
|
16,385,821
|
29,134,224
|
Commission
expense
|
7,899,191
|
6,853,416
|
Other
underwriting expenses
|
6,761,792
|
6,135,991
|
Depreciation
and amortization
|
653,902
|
578,353
|
Total
expenses
|
31,700,706
|
42,701,984
|
|
|
|
Loss
from operations
|
(5,326,974)
|
(7,920,179)
|
Income
tax benefit
|
(1,207,969)
|
(1,702,971)
|
Net loss
|
$(4,119,005)
|
$(6,217,208)
|
|
|
|
Key Measures:
|
|
|
Net
loss ratio
|
60.8%
|
98.4%
|
Net
underwriting expense ratio
|
39.3%
|
38.5%
|
Net
combined ratio
|
100.1%
|
136.9%
|
|
|
|
Reconciliation
of net underwriting expense ratio:
|
|
|
Acquisition
costs and other
|
|
|
underwriting
expenses
|
$14,660,983
|
$12,989,407
|
Less:
Ceding commission revenue
|
(3,831,099)
|
(1,277,683)
|
Less:
Other income
|
(244,974)
|
(314,738)
|
Net
underwriting expenses
|
$10,584,910
|
$11,396,986
|
|
|
|
Net
premiums earned
|
$26,941,450
|
$29,595,889
|
|
|
|
Net
Underwriting Expense Ratio
|
39.3%
|
38.5%
|
|
Direct
|
Assumed
|
Ceded
|
Net
|
|
|
|
|
|
Three months ended March 31, 2020
|
|
|
|
|
Written
premiums
|
$36,696,929
|
$-
|
$(13,506,255)
|
$23,190,674
|
Change
in unearned premiums
|
5,904,700
|
-
|
(2,153,924)
|
3,750,776
|
Earned
premiums
|
$42,601,629
|
$-
|
$(15,660,179)
|
$26,941,450
|
|
|
|
|
|
Loss
and loss adjustment expenses exluding
|
|
|
|
|
the
effect of catastrophes
|
$21,971,351
|
$-
|
$(5,783,990)
|
$16,187,361
|
Catastrophe
loss
|
281,368
|
-
|
(82,908)
|
198,460
|
Loss
and loss adjustment expenses
|
$22,252,719
|
$-
|
$(5,866,898)
|
$16,385,821
|
|
|
|
|
|
Loss
ratio excluding the effect of catastrophes
|
51.6%
|
na
|
36.9%
|
60.1%
|
Catastrophe
loss
|
0.7%
|
na
|
0.5%
|
0.7%
|
Loss
ratio
|
52.2%
|
na
|
37.5%
|
60.8%
|
|
|
|
|
|
Three months ended March 31, 2019
|
|
|
|
|
Written
premiums
|
$37,488,548
|
$(34)
|
$(7,127,909)
|
$30,360,605
|
Change
in unearned premiums
|
(628,067)
|
195
|
(136,844)
|
(764,716)
|
Earned
premiums
|
$36,860,481
|
$161
|
$(7,264,753)
|
$29,595,889
|
|
|
|
|
|
Loss
and loss adjustment expenses exluding
|
|
|
|
|
the
effect of catastrophes
|
$26,645,777
|
$(3,002)
|
$(2,571,747)
|
$24,071,028
|
Catastrophe
loss
|
5,627,343
|
-
|
(564,147)
|
5,063,196
|
Loss
and loss adjustment expenses
|
$32,273,120
|
$(3,002)
|
$(3,135,894)
|
$29,134,224
|
|
|
|
|
|
Loss
ratio excluding the effect of catastrophes
|
72.3%
|
-1864.6%
|
35.4%
|
81.3%
|
Catastrophe
loss
|
15.3%
|
0.0%
|
7.8%
|
17.1%
|
Loss
ratio
|
87.6%
|
-1864.6%
|
43.2%
|
98.4%
|
|
Three months ended
|
|
|
March 31,
|
|
|
2020
|
2019
|
|
|
|
Net
premiums earned
|
$26,941,450
|
$29,595,889
|
Ceding
commission revenue
|
3,831,099
|
1,277,683
|
Other
income
|
244,974
|
314,738
|
|
|
|
Loss
and loss adjustment expenses (1)
|
16,385,821
|
29,134,224
|
|
|
|
Acquisition
costs and other underwriting expenses:
|
|
|
Commission
expense
|
7,899,191
|
6,853,416
|
Other
underwriting expenses
|
6,761,792
|
6,135,991
|
Total
acquisition costs and other
|
|
|
underwriting
expenses
|
14,660,983
|
12,989,407
|
|
|
|
Underwriting
loss
|
$(29,281)
|
$(10,935,321)
|
|
|
|
Key
Measures:
|
|
|
Net
loss ratio excluding the effect of catastrophes
|
60.1%
|
81.3%
|
Effect
of catastrophe loss on net loss ratio (1)
|
0.7%
|
17.1%
|
Net
loss ratio
|
60.8%
|
98.4%
|
|
|
|
Net
underwriting expense ratio excluding the
|
|
|
effect
of catastrophes
|
39.3%
|
38.5%
|
Effect
of catastrophe loss on net underwriting
|
|
|
expense
ratio
|
0.0%
|
0.0%
|
Net
underwriting expense ratio
|
39.3%
|
38.5%
|
|
|
|
Net
combined ratio excluding the effect
|
|
|
of
catastrophes
|
99.4%
|
119.8%
|
Effect
of catastrophe loss on net combined
|
|
|
ratio
(1)
|
0.7%
|
17.1%
|
Net
combined ratio
|
100.1%
|
136.9%
|
|
|
|
Reconciliation
of net underwriting expense ratio:
|
|
|
Acquisition
costs and other
|
|
|
underwriting
expenses
|
$14,660,983
|
$12,989,407
|
Less:
Ceding commission revenue
|
(3,831,099)
|
(1,277,683)
|
Less:
Other income
|
(244,974)
|
(314,738)
|
|
$10,584,910
|
$11,396,986
|
|
|
|
Net
earned premium
|
$26,941,450
|
$29,595,889
|
|
|
|
Net
Underwriting Expense Ratio
|
39.3%
|
38.5%
|
|
March 31, 2020
|
|||||
|
|
|
|
|
|
|
|
Cost or
|
Gross
|
Gross Unrealized Losses
|
Estimated
|
% of
|
|
|
Amortized
|
Unrealized
|
Less than 12
|
More than 12
|
Fair
|
Estimated
|
Category
|
Cost
|
Gains
|
Months
|
Months
|
Value
|
Fair Value
|
|
|
|
|
|
|
|
U.S. Treasury securities and obligations
of U.S. government corporations
and agencies
|
$5,033,879
|
$102,361
|
$-
|
$-
|
$5,136,240
|
3.4%
|
|
|
|
|
|
|
|
Political subdivisions of States,
|
|
|
|
|
|
|
Territories
and Possessions
|
9,139,221
|
275,738
|
-
|
-
|
9,414,959
|
6.2%
|
|
|
|
|
|
|
|
Corporate
and other bonds
|
|
|
|
|
|
|
Industrial
and miscellaneous
|
112,871,652
|
2,876,429
|
(2,258,459)
|
-
|
113,489,622
|
74.7%
|
|
|
|
|
|
|
|
Residential mortgage and other
|
|
|
|
|
|
|
asset
backed securities (1)
|
25,631,027
|
292,497
|
(938,478)
|
(1,145,973)
|
23,839,073
|
15.7%
|
Total
|
$152,675,779
|
$3,547,025
|
$(3,196,937)
|
$(1,145,973)
|
$151,879,894
|
100.0%
|
|
December 31, 2019
|
|||||
|
|
|
|
|
|
|
|
Cost or
|
Gross
|
Gross Unrealized Losses
|
Estimated
|
% of
|
|
|
Amortized
|
Unrealized
|
Less than 12
|
More than 12
|
Fair
|
Estimated
|
Category
|
Cost
|
Gains
|
Months
|
Months
|
Value
|
Fair Value
|
|
|
|
|
|
|
|
U.S.
Treasury securities and
|
|
|
|
|
|
|
obligations
of U.S. government
|
|
|
|
|
|
|
corporations
and agencies
|
$7,037,856
|
$23,244
|
$-
|
$-
|
$7,061,100
|
4.2%
|
|
|
|
|
|
|
|
Political
subdivisions of States,
|
|
|
|
|
|
|
Territories
and Possessions
|
9,151,293
|
181,835
|
(11,316)
|
-
|
9,321,812
|
5.5%
|
|
|
|
|
|
|
|
Corporate
and other bonds
|
|
|
|
|
|
|
Industrial
and miscellaneous
|
119,874,573
|
5,777,624
|
(16,685)
|
(13,473)
|
125,622,039
|
74.7%
|
|
|
|
|
|
|
|
Residential
mortgage and other
|
|
|
|
|
|
|
asset
backed securities (1)
|
26,138,633
|
437,841
|
(68,793)
|
(276,451)
|
26,231,230
|
15.6%
|
Total
|
$162,202,355
|
$6,420,544
|
$(96,794)
|
$(289,924)
|
$168,236,181
|
100.0%
|
|
March 31, 2020
|
||||
|
|
Gross
|
Gross
|
Estimated
|
% of
|
|
|
Unrealized
|
Unrealized
|
Fair
|
Estimated
|
Category
|
Cost
|
Gains
|
Losses
|
Value
|
Fair Value
|
|
|
|
|
|
|
Equity Securities:
|
|
|
|
|
|
Preferred
stocks
|
$7,535,068
|
$7,870
|
$(1,113,367)
|
$6,429,571
|
35.0%
|
Common
stocks, mutual funds,
|
|
|
|
|
|
and
exchange traded funds
|
14,894,969
|
137,242
|
(3,092,889)
|
11,939,322
|
65.0%
|
Total
|
$22,430,037
|
$145,112
|
$(4,206,256)
|
$18,368,893
|
100.0%
|
|
December 31, 2019
|
||||
|
|
Gross
|
Gross
|
Estimated
|
% of
|
|
|
Unrealized
|
Unrealized
|
Fair
|
Estimated
|
Category
|
Cost
|
Gains
|
Losses
|
Value
|
Fair Value
|
|
|
|
|
|
|
Equity Securities:
|
|
|
|
|
|
Preferred
stocks
|
$8,374,424
|
$339,257
|
$(11,794)
|
$8,701,887
|
35.3%
|
Common
stocks, mutual funds,
|
|
|
|
|
|
and
exchange traded funds
|
14,250,244
|
1,982,878
|
(273,627)
|
15,959,495
|
64.7%
|
Total
|
$22,624,668
|
$2,322,135
|
$(285,421)
|
$24,661,382
|
100.0%
|
|
March 31, 2020
|
December 31, 2019
|
||||
|
|
Gross
|
|
|
Gross
|
|
|
|
Unrealized
|
Estimated
|
|
Unrealized
|
Estimated
|
Category
|
Cost
|
Losses
|
Fair Value
|
Cost
|
Gains
|
Fair Value
|
|
|
|
|
|
|
|
Other Investments:
|
|
|
|
|
|
|
Hedge
fund
|
$1,999,381
|
$(11,859)
|
$1,987,522
|
$1,999,381
|
$585,532
|
$2,584,913
|
Total
|
$1,999,381
|
$(11,859)
|
$1,987,522
|
$1,999,381
|
$585,532
|
$2,584,913
|
|
March 31, 2020
|
|||||
|
|
|
|
|
|
|
|
Cost or
|
Gross
|
Gross Unrealized Losses
|
Estimated
|
% of
|
|
|
Amortized
|
Unrealized
|
Less than 12
|
More than 12
|
Fair
|
Estimated
|
Category
|
Cost
|
Gains
|
Months
|
Months
|
Value
|
Fair Value
|
|
|
|
|
|
|
|
U.S.
Treasury securities
|
$729,561
|
$162,483
|
$-
|
$-
|
$892,044
|
21.6%
|
|
|
|
|
|
|
|
Political
subdivisions of States,
|
|
|
|
|
|
|
Territories
and Possessions
|
998,573
|
43,857
|
-
|
-
|
1,042,430
|
25.2%
|
|
|
|
|
|
|
|
Corporate
and other bonds
|
|
|
|
|
|
|
Industrial
and miscellaneous
|
2,098,270
|
106,196
|
(2,230)
|
-
|
2,202,236
|
53.2%
|
|
|
|
|
|
|
|
Total
|
$3,826,404
|
$312,536
|
$(2,230)
|
$-
|
$4,136,710
|
100.0%
|
|
December 31, 2019
|
|||||
|
|
|
|
|
|
|
|
Cost or
|
Gross
|
Gross Unrealized Losses
|
Estimated
|
% of
|
|
|
Amortized
|
Unrealized
|
Less than 12
|
More than 12
|
Fair
|
Estimated
|
Category
|
Cost
|
Gains
|
Months
|
Months
|
Value
|
Fair Value
|
|
|
|
|
|
|
|
U.S.
Treasury securities
|
$729,550
|
$151,002
|
$-
|
$-
|
$880,552
|
21.3%
|
|
|
|
|
|
|
|
Political
subdivisions of States,
|
|
|
|
|
|
|
Territories
and Possessions
|
998,619
|
51,021
|
-
|
-
|
1,049,640
|
25.4%
|
|
|
|
|
|
|
|
Corporate
and other bonds
|
|
|
|
|
|
|
Industrial
and miscellaneous
|
2,097,783
|
97,627
|
(835)
|
-
|
2,194,575
|
53.3%
|
|
|
|
|
|
|
|
Total
|
$3,825,952
|
$299,650
|
$(835)
|
$-
|
$4,124,767
|
100.0%
|
|
March 31, 2020
|
December 31, 2019
|
||
|
Amortized
|
Estimated
|
Amortized
|
Estimated
|
Remaining Time to
Maturity
|
Cost
|
Fair Value
|
Cost
|
Fair Value
|
|
|
|
|
|
Less
than one year
|
$500,000
|
$497,770
|
$500,000
|
$499,165
|
One
to five years
|
2,099,588
|
2,220,096
|
2,099,268
|
2,215,640
|
Five
to ten years
|
620,255
|
664,805
|
620,134
|
655,923
|
More
than 10 years
|
606,561
|
754,039
|
606,550
|
754,039
|
Total
|
$3,826,404
|
$4,136,710
|
$3,825,952
|
$4,124,767
|
|
March 31, 2020
|
December 31, 2019
|
||
|
Estimated
|
Percentage of
|
Estimated
|
Percentage of
|
|
Fair
|
Fair
|
Fair
|
Fair
|
|
Value
|
Value
|
Value
|
Value
|
|
|
|
|
|
Rating
|
|
|
|
|
U.S.
Treasury securities
|
$5,136,240
|
3.4%
|
$7,061,100
|
4.2%
|
|
|
|
|
|
Corporate
and municipal bonds
|
|
|
|
|
AAA
|
2,022,146
|
1.3%
|
1,996,676
|
1.2%
|
AA
|
7,839,200
|
5.2%
|
8,809,480
|
5.2%
|
A
|
31,511,319
|
20.7%
|
34,636,236
|
20.6%
|
BBB
|
79,968,943
|
52.7%
|
89,501,460
|
53.2%
|
BB
|
1,562,973
|
1.0%
|
-
|
0.0%
|
Total
corporate and municipal bonds
|
122,904,581
|
80.9%
|
134,943,852
|
80.2%
|
|
|
|
|
|
Residential
mortgage backed securities
|
|
|
|
|
AAA
|
2,688,010
|
1.8%
|
2,976,306
|
1.8%
|
AA
|
17,071,264
|
11.2%
|
18,440,382
|
10.9%
|
A
|
2,077,613
|
1.4%
|
2,471,761
|
1.5%
|
CCC
|
1,020,476
|
0.7%
|
1,174,273
|
0.7%
|
CC
|
61,110
|
0.0%
|
86,461
|
0.1%
|
C
|
16,455
|
0.0%
|
17,813
|
0.0%
|
D
|
181,612
|
0.1%
|
215,015
|
0.1%
|
Non-rated
|
722,533
|
0.5%
|
849,218
|
0.5%
|
Total
residential mortgage backed securities
|
23,839,073
|
15.7%
|
26,231,229
|
15.6%
|
|
|
|
|
|
Total
|
$151,879,894
|
100.0%
|
$168,236,181
|
100.0%
|
Category
|
March 31,
2020
|
December 31,
2019
|
U.S.
Treasury securities and
|
|
|
obligations
of U.S. government
|
|
|
corporations
and agencies
|
2.42%
|
2.18%
|
|
|
|
Political
subdivisions of States,
|
|
|
Territories
and Possessions
|
3.23%
|
3.26%
|
|
|
|
Corporate
and other bonds
|
|
|
Industrial
and miscellaneous
|
3.87%
|
3.73%
|
|
|
|
Residential
mortgage backed securities
|
1.97%
|
2.01%
|
|
|
|
Total
|
3.48%
|
3.37%
|
|
March 31,
2020
|
December 31,
2019
|
Weighted
average effective maturity
|
4.9
|
4.8
|
|
|
|
Weighted
average final maturity
|
6.2
|
6.3
|
|
|
|
Effective
duration
|
4.2
|
4.3
|
|
March 31, 2020
|
|||||||
|
Less than 12 months
|
12 months or more
|
Total
|
|||||
|
Estimated
|
|
No. of
|
Estimated
|
|
No. of
|
Estimated
|
|
|
Fair
|
Unrealized
|
Positions
|
Fair
|
Unrealized
|
Positions
|
Fair
|
Unrealized
|
Category
|
Value
|
Losses
|
Held
|
Value
|
Losses
|
Held
|
Value
|
Losses
|
|
|
|
|
|
|
|
|
|
Fixed-Maturity Securities:
|
|
|
|
|
|
|
|
|
U.S.
Treasury securities
|
|
|
|
|
|
|
|
|
and
obligations of U.S.
|
|
|
|
|
|
|
|
|
government
corporations
|
|
|
|
|
|
|
|
|
and
agencies
|
$-
|
$-
|
-
|
$-
|
$-
|
-
|
$-
|
$-
|
|
|
|
|
|
|
|
|
|
Political
subdivisions of
|
|
|
|
|
|
|
|
|
States,
Territories and
|
|
|
|
|
|
|
|
|
Possessions
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
Corporate
and other
|
|
|
|
|
|
|
|
|
bonds
industrial and
|
|
|
|
|
|
|
|
|
miscellaneous
|
35,409,999
|
(2,258,459)
|
50
|
-
|
-
|
-
|
35,409,999
|
(2,258,459)
|
|
|
|
|
|
|
|
|
|
Residential
mortgage and other
|
|
|
|
|
|
|
|
|
asset
backed securities
|
6,067,674
|
(938,478)
|
13
|
10,286,307
|
(1,145,973)
|
17
|
16,353,981
|
(2,084,451)
|
|
|
|
|
|
|
|
|
|
Total
fixed-maturity
|
|
|
|
|
|
|
|
|
securities
|
$41,477,673
|
$(3,196,937)
|
63
|
$10,286,307
|
$(1,145,973)
|
17
|
$51,763,980
|
$(4,342,910)
|
|
December 31, 2019
|
|||||||
|
Less than 12 months
|
12 months or more
|
Total
|
|||||
|
Estimated
|
|
No. of
|
Estimated
|
|
No. of
|
Estimated
|
|
|
Fair
|
Unrealized
|
Positions
|
Fair
|
Unrealized
|
Positions
|
Fair
|
Unrealized
|
Category
|
Value
|
Losses
|
Held
|
Value
|
Losses
|
Held
|
Value
|
Losses
|
|
|
|
|
|
|
|
|
|
Fixed-Maturity Securities:
|
|
|
|
|
|
|
|
|
U.S.
Treasury securities
|
|
|
|
|
|
|
|
|
and
obligations of U.S.
|
|
|
|
|
|
|
|
|
government
corporations
|
|
|
|
|
|
|
|
|
and
agencies
|
$-
|
$-
|
-
|
$-
|
$-
|
-
|
$-
|
$-
|
|
|
|
|
|
|
|
|
|
Political
subdivisions of
|
|
|
|
|
|
|
|
|
States,
Territories and
|
|
|
|
|
|
|
|
|
Possessions
|
3,067,428
|
(11,316)
|
3
|
-
|
-
|
-
|
3,067,428
|
(11,316)
|
|
|
|
|
|
|
|
|
|
Corporate
and other
|
|
|
|
|
|
|
|
|
bonds
industrial and
|
|
|
|
|
|
|
|
|
miscellaneous
|
3,730,478
|
(16,685)
|
7
|
1,300,915
|
(13,473)
|
3
|
5,031,393
|
(30,158)
|
|
|
|
|
|
|
|
|
|
Residential
mortgage and other
|
|
|
|
|
|
|
|
|
asset
backed securities
|
5,862,636
|
(68,793)
|
5
|
13,534,768
|
(276,451)
|
21
|
19,397,404
|
(345,244)
|
|
|
|
|
|
|
|
|
|
Total
fixed-maturity
|
|
|
|
|
|
|
|
|
securities
|
$12,660,542
|
$(96,794)
|
15
|
$14,835,683
|
$(289,924)
|
24
|
$27,496,225
|
$(386,718)
|
Three Months Ended March 31,
|
2020
|
2019
|
|
|
|
Cash
flows provided by (used in):
|
|
|
Operating
activities
|
$(15,256,414)
|
$2,702,404
|
Investing
activities
|
9,458,356
|
(6,884,358)
|
Financing
activities
|
(1,006,638)
|
(1,191,969)
|
Net decrease in cash and cash equivalents
|
(6,804,696)
|
(5,373,923)
|
Cash
and cash equivalents, beginning of period
|
32,391,485
|
21,138,403
|
Cash and cash equivalents, end of period
|
$25,586,789
|
$15,764,480
|
|
Treaty Year
|
||
|
December 15, 2019
|
July 1, 2019
|
July 1, 2018
|
|
to
|
to
|
to
|
Line of Business
|
December 31, 2020
|
December 14, 2019
|
June 30, 2019
|
|
|
|
|
Personal Lines:
|
|
|
|
Homeowners,
dwelling fire and
|
|
|
|
and
canine legal liability
|
|
|
|
Quota
share treaty:
|
|
|
|
Percent
ceded
|
25%
|
None
|
10%
|
|
Treaty
Year
|
||
|
December
15, 2019
|
July 1,
2019
|
July 1,
2018
|
|
to
|
to
|
to
|
Line of
Business
|
June 30,
2020
|
December
14, 2019
|
June 30,
2019
|
|
|
|
|
Personal
Lines:
|
|
|
|
Homeowners,
dwelling fire
|
|
|
|
and
canine legal liability
|
|
|
|
Quota
share treaty:
|
|
|
|
Risk
retained on intial $1,000,000
|
|
|
|
of
losses
|
$750,000
|
$1,000,000
|
$900,000
|
Losses
per occurrence subject to
|
|
|
|
quota
share reinsurance coverage
|
$1,000,000
|
None
|
$1,000,000
|
Excess
of loss coverage and facultative
|
|
|
|
facility
coverage (1)
|
$9,000,000
|
$9,000,000
|
$9,000,000
|
|
in
excess of
|
in
excess of
|
in
excess of
|
|
$1,000,000
|
$1,000,000
|
$1,000,000
|
Total
reinsurance coverage per occurrence
|
$9,250,000
|
$9,000,000
|
$9,100,000
|
Losses
per occurrence subject to
|
|
|
|
reinsurance
coverage
|
$10,000,000
|
$10,000,000
|
$10,000,000
|
Expiration
date
|
June 30, 2020
|
June
30, 2020
|
June
30, 2019
|
|
|
|
|
Catastrophe
Reinsurance:
|
|
|
|
Initial
loss subject to personal lines
|
|
|
|
quota
share treaty
|
$7,500,000
|
None
|
$5,000,000
|
Risk
retained per catastrophe
|
|
|
|
occurrence
(2)
|
$5,625,000
|
$7,500,000
|
$4,500,000
|
Catastrophe
loss coverage in excess of
|
|
|
|
quota
share coverage (3)
|
$602,500,000
|
$602,500,000
|
$445,000,000
|
Reinstatement
premium
|
|
|
|
protection
(4) (5)
|
Yes
|
Yes
|
Yes
|
|
Treaty Year
|
|
|
July 1, 2019
|
July 1, 2018
|
|
to
|
to
|
Line of Business
|
June 30, 2020
|
June 30, 2019
|
|
|
|
Personal Lines:
|
|
|
|
|
|
Personal
Umbrella
|
|
|
Quota
share treaty:
|
|
|
Percent
ceded - first $1,000,000 of coverage
|
90%
|
90%
|
Percent
ceded - excess of $1,000,000 dollars of coverage
|
100%
|
100%
|
Risk
retained
|
$100,000
|
$100,000
|
Total
reinsurance coverage per occurrence
|
$4,900,000
|
$4,900,000
|
Losses
per occurrence subject to quota share reinsurance
coverage
|
$5,000,000
|
$5,000,000
|
Expiration
date
|
June 30, 2020
|
June 30, 2019
|
|
|
|
Commercial Lines:
|
|
|
General
iability commercial policies
|
|
|
Quota
share treaty
|
None
|
None
|
Risk
retained
|
$750,000
|
$750,000
|
Excess
of loss coverage above risk retained
|
$3,750,000
|
$3,750,000
|
in excess of
|
in excess of
|
|
|
$750,000
|
$750,000
|
Total
reinsurance coverage per occurrence
|
$3,750,000
|
$3,750,000
|
Losses
per occurrence subject to reinsurance coverage
|
$4,500,000
|
$4,500,000
|
|
|
|
Commercial
Umbrella
|
|
|
Quota
share treaty:
|
None
|
|
Percent
ceded - first $1,000,000 of coverage
|
|
90%
|
Percent
ceded - excess of $1,000,000 of coverage
|
|
100%
|
Risk
retained
|
|
$100,000
|
Total
reinsurance coverage per occurrence
|
|
$4,900,000
|
Losses
per occurrence subject to quota share reinsurance
coverage
|
|
$5,000,000
|
Expiration
date
|
|
June
30, 2019
|
Period
|
Total
Number of Shares
Purchased(1)
|
Average
Price
Paid
per
Share
|
Total Number of
Shares Purchased as Part of Publicly Announced Plans or
Programs
|
Maximum Number
of Shares that May Be Purchased Under the Plans or
Programs
|
|
|
|
|
|
1/1/20 –
1/31/20
|
-
|
-
|
-
|
-
|
2/1/20 –
2/29/20
|
-
|
-
|
-
|
-
|
3/1/20 –
3/31/20
|
42,434
|
$5.66
|
-
|
-
|
Total
|
42,434
|
$5.66
|
-
|
-
|
Restated
Certificate of Incorporation, as amended (incorporated by reference
to Exhibit 3(a) to the Company’s Quarterly Report on Form
10-Q for the period ended March 31, 2014 filed on May 15,
2014).
|
|
|
|
3(b) |
By-laws,
as amended (incorporated by reference to Exhibit 3.1 to the
Company’s Current Report on Form 8-K filed on November 9,
2009).
|
|
|
Rule
13a-14(a)/15d-14(a) Certification of Principal Executive Officer as
adopted pursuant to Section 302 of the Sarbanes-Oxley Act of
2002
|
|
|
|
Rule
13a-14(a)/15d-14(a) Certification of Principal Financial Officer as
adopted pursuant to Section 302 of the Sarbanes-Oxley Act of
2002
|
|
|
|
Certification of
Chief Executive Officer and Chief Financial Officer Pursuant to 18
U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002
|
|
|
|
101.INS
|
XBRL
Instance Document
|
|
|
101.SCH
|
101.SCH
XBRL Taxonomy Extension Schema.
|
|
|
101.CAL
|
101.CAL
XBRL Taxonomy Extension Calculation Linkbase.
|
|
|
101.DEF
|
101.DEF
XBRL Taxonomy Extension Definition Linkbase.
|
|
|
101.LAB
|
101.LAB
XBRL Taxonomy Extension Label Linkbase.
|
|
|
101.PRE
|
101.PRE
XBRL Taxonomy Extension Presentation Linkbase.
|
|
KINGSTONE
COMPANIES, INC.
|
|
|
|
|
|
|
Dated: May 11,
2020
|
By:
|
/s/ Barry B.
Goldstein
|
|
|
|
Barry B.
Goldstein
|
|
|
|
Chief Executive
Officer
|
|
|
|
||
|
|
|
|
Dated: May 11,
2020
|
By:
|
/s/ Victor
Brodsky
|
|
|
|
Victor Brodsky |
|
|
|
Chief Financial
Officer
|
|