EX-99.2 3 kins_ex992.htm ADDITIONAL FINANCIAL INFORMATION FOR Q3 2019 Blueprint
  Exhibit 99.2
 
 
Additional Financial Information for Q3 2019
  
Definitions and Non-GAAP Measures
 
Direct written premiums represent the total premiums charged on policies issued by the Company during the respective fiscal period. Net premiums written are direct written premiums less premiums ceded to reinsurers. Net premiums earned, the GAAP measure most comparable to direct written premiums and net premiums written, are net premiums written that are pro-rata earned during the fiscal period presented. All of the Company’s policies are written for a twelve-month period. Management uses direct written premiums and net premiums written, along with other measures, to gauge the Company’s performance and evaluate results.
 
Core direct written premiums - represents the total premiums charged on policies issued by the Company during the respective fiscal period from its business located in New York.
 
Expansion direct written premiums - represents the total premiums charged on policies issued by the Company during the respective fiscal period from its business located in other states (i.e., outside New York).
 
Net operating income (loss) - is net income (loss) exclusive of realized investment gains, net of tax. Net income (loss) is the GAAP measure most closely comparable to net operating income (loss).
 
Management uses net operating income along with other measures to gauge the Company’s performance and evaluate results, which can be skewed when including realized investment gains, and may vary significantly between periods. Net operating income is provided as supplemental information, not as a substitute for net income and does not reflect the Company’s overall profitability.
 
Underlying net loss ratio - is a non-GAAP ratio, which is computed as the difference between GAAP net loss ratio and the effect of catastrophes and prior year loss development on the net loss ratio.
 
Underlying net loss ratio excluding Commercial Lines - is a non-GAAP ratio, which is computed as the difference between GAAP net loss ratio excluding commercial lines and the effect of catastrophes and prior year loss development on the net loss ratio excluding commercial lines.
 
Net combined ratio excluding effect of catastrophes and prior year loss development - is a non-GAAP ratio, which is computed as the difference between GAAP net combined ratio and the effect of catastrophes and prior year loss development on the net combined ratio.
 
We believe that these ratios are useful to investors and they are used by management to reveal the trends in our business that may be obscured by catastrophe losses and prior year loss development. Catastrophe losses cause our loss ratios to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on the net loss ratio and net combined ratio. Prior year loss development can cause our loss ratio to vary significantly between periods and separating this information allows us to better compare the results for the current accident period over time. We believe these measures are useful for investors to evaluate these components separately and in the aggregate when reviewing our underwriting performance. We also provide them to facilitate a comparison to our outlook on the underlying net loss ratio excluding commercial lines and net combined ratio excluding the effect of catastrophes and prior year loss development. The most directly comparable GAAP measures are the net loss ratio and net combined ratio. The underlying net loss ratio excluding commercial lines and net combined ratio excluding the effect of catastrophes and prior year loss development should not be considered a substitute for the net loss ratio and net combined ratio and do not reflect the Company’s net loss ratio and net combined ratio.
 
 
 
 
Book Value Per Share
 
The Company’s book value per share at September 30, 2019 was $8.04, a decrease of 5.9% compared to $8.54 at September 30, 2018.
 
 
 
30-Sep-19
 
 
30-Jun-19
 
 
31-Mar-19
 
 
31-Dec-18
 
 
30-Sep-18
 
Book Value Per Share
 $8.04 
 $8.14 
 $7.78 
 $8.25 
 $8.54 
 
    
    
    
    
    
% Decrease or Increase from specified period to 9/30/19
    
  -1.2%
  3.3%
  -2.5%
  -5.9%
 
The table below reconciles the direct written premiums and net written premiums to net premiums earned for the periods indicated:
 
 
 
 For the Three Months Ended
 
 
 For the Nine Months Ended
 
 
 
 September 30,
 
 
 September 30,
 
 
 
2019
 
 
2018
 
 
$ Change
 
 
% Change
 
 
2019
 
 
2018
 
 
$ Change
 
 
% Change
 
(000’s except percentages)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Direct and Net Written
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premiums Reconciliation:  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Direct written premiums
 $46,023 
 $38,785 
 $7,238 
  18.7%
 $128,333 
 $107,175 
 $21,158 
  19.7%
Assumed written premiums
  1 
  - 
  1 
 
  na%
 
  1 
  1 
  - 
  -%
Ceded written premiums
  (5,586)
  (2,683)
  (2,903)
  108.2%
  (20,914)
  (19,409)
  (1,505)
  7.8%
 
    
    
    
    
    
    
    
    
Net written premiums
  40,438 
  36,102 
  4,336 
  12.0%
  107,420 
  87,767 
  19,653 
  22.4%
Change in unearned premiums
  (6,218)
  (8,568)
  2,350 
  (27.4)%
  (12,403)
  (13,291)
  888 
  (6.7)%
 
    
    
    
    
    
    
    
    
Net premiums earned
 $34,220 
 $27,534 
 $6,686 
  24.3%
 $95,017 
 $74,476 
 $20,541 
  27.6%
 
The table below details the breakdown of the direct written premiums between Core direct written premiums and Expansion direct written premiums for the periods indicated:
 
 
 
 For the Three Months Ended
 
 
 For the Nine Months Ended
 
 
 
 September 30,
 
 
 September 30,
 
 
 
2019
 
 
2018
 
 
$ Change
 
 
% Change
 
 
2019
 
 
2018
 
 
$ Change
 
 
% Change
 
(000’s except percentages)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Core and Expansion Direct
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Written Premiums
Reconciliation:  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Core direct written premiums
 $38,652 
 $35,930 
 $2,722 
  7.6%
 $111,433 
 $101,256 
 $10,177 
  10.1%
Expansion direct written premiums
  7,371 
  2,855 
  4,516 
  158.2%
  16,900 
  5,919 
  10,981 
  185.5%
Direct written premiums
 $46,023 
 $38,785 
 $7,238 
  18.7%
 $128,333 
 $107,175 
 $21,158 
  19.7%
 
 
 
 
The following table reconciles net operating income (loss) to net income (loss) for the periods indicated:
 
 
 
 Three Months Ended
 
 
 Three Months Ended
 
 
 Nine Months Ended
 
 
 Nine Months Ended
 
 
 
September 30, 2019
 
 
September 30, 2018
 
 
September 30, 2019
 
 
September 30, 2018
 
 
 
 Amount
 
 
Diluted earnings per common share
 
 
 Amount
 
 
Diluted earnings per common share
 
 
 Amount
 
 
Diluted earnings per common share
 
 
 Amount
 
 
Diluted earnings per common share
 
(000’s except per common share amounts and percentages)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Operating Income and
Diluted Earnings per
Common Share
Reconciliation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 $(1,725)
 $(0.16)
 $3,934 
 $0.36 
 $(7,421)
 $(0.69)
 $3,973 
 $0.37 
 
    
    
    
    
    
    
    
    
Net realized (gain) loss on investments
  (998)
    
  (352)
    
  (3,712)
    
  278 
    
Less tax (expense) benefit on net realized (gain) loss
  (210)
    
  (74)
    
  (780)
    
  58 
    
 
    
    
    
    
    
    
    
    
Net realized (gain) loss on investments, net of taxes
  (788)
 $(0.07)
  (278)
 $(0.02)
  (2,932)
 $(0.27)
  220 
 $0.02 
 
    
    
    
    
    
    
    
    
Net operating income (loss)
 $(2,513)
 $(0.23)
 $3,656 
 $0.34 
 $(10,353)
 $(0.96)
 $4,193 
 $0.39 
 
    
    
    
    
    
Weighted average diluted shares outstanding
  10,779,641 
  10,791,123 
    
  10,769,817 
  10,780,590 
 
 
 
 
The following table reconciles the Underlying net loss ratio excluding Commercial Lines to the net loss ratio for the periods indicated:
 
 
 
 For the Three Months Ended
 
 
 For the Nine Months Ended
 
 
 
 September 30,
 
 
 September 30,
 
 
 
2019
 
 
2018
 
 
  Change      
 
 
2019
 
 
2018
 
 
  Change      
 
Underlying Net Loss Ratio
Excluding Commercial
lines Reconciliation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net loss and loss adjustment expenses ("Net loss")
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Underlying Net Loss Ratio Excluding Commercial lines
 $15,653 
 $11,008 
 $4,645 
  42.2%
 $44,069 
 $29,701 
 $14,368 
  48.4%
Commercial lines net loss
  8,023 
  2,264 
  5,759 
  254.4%
  18,459 
  5,514 
  12,945 
  234.8%
Catastrophe losses excluding commercial lines
  492 
  375 
  117 
  31.2%
  6,783 
  6,061 
  722 
  11.9%
Prior year loss development excluding commercial lines
  613 
  (350)
  963 
 
na
 
  2,277 
  463 
  1,814 
  391.8%
Net loss
  24,781 
  13,297 
  11,484 
  86.4%
  71,588 
  41,739 
  29,849 
  71.5%
 
    
    
    
    
    
    
    
    
Net premiums earned
    
    
    
    
    
    
    
    
Net premiums earned excluding commercial lines
  30,475 
  23,992 
  6,483 
  27.0%
  83,981 
  64,280 
  19,701 
  30.6%
Commercial lines net premiums earned
  3,745 
  3,542 
  203 
  5.7%
  11,036 
  10,196 
  840 
  8.2%
Net premiums earned
  34,220 
  27,534 
  6,686 
  24.3%
  95,017 
  74,476 
  20,541 
  27.6%
 
    
    
    
    
    
    
    
    
Underlying net loss ratio excluding commercial lines
  51.4%
  45.9%
  5.5 
 
 pts
 
  52.5%
  46.2%
  6.3 
 
 pts
 
 
    
    
    
    
    
    
    
    
Net loss ratio
  72.4%
  48.3%
  24.1 
 
 pts
 
  75.3%
  56.0%
  19.3 
 
 pts
 
 
 
 
 
The following table reconciles the net combined ratio excluding catastrophes and prior year loss development to the net combined ratio for the periods indicated:
 
 
 
 For the Three Months Ended
 
 
 For the Nine Months Ended
 
 
 
 September 30,
 
 
 September 30,
 
 
 
2019
 
 
2018
 
 
Percentage Point Change
 
 
2019
 
 
2018
 
 
Percentage Point Change
 
Net Combined Ratio
Excluding Catastrophes
and Prior Year
Development
Reconciliation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Combined Ratio Excluding Catastrophes and Prior Year Development
  93.9%
  85.0%
  8.9 
 pts
  94.0%
  85.1%
  8.9 
 pts
 
    
    
    
 
    
    
    
 
Effect of catastrophe losses and prior year development
 
    
 
    
    
    
 
Catastrophe losses
  1.3%
  1.4%
  (0.1)
 pts
  7.3%
  8.2%
  (0.9)
 pts
Prior year development
  14.7%
  -0.4%
  15.1 
 pts
  11.8%
  0.2%
  11.6 
 pts
Effect of catastrophe losses and prior year development on net loss and loss adjustment expenses
  16.0%
  1.0%
  15.0 
 pts
  19.1%
  8.4%
  10.7 
 pts
Net underwriting expense ratio
  0.0%
  0.0%
  - 
 pts
  0.0%
  0.6%
  (0.6)
 pts
Total effect of catastrophe losses and prior year development
  16.0%
  1.0%
  15.0 
 pts
  19.1%
  9.0%
  10.1 
 pts
 
    
    
    
 
    
    
    
 
Net combined ratio
  109.9%
  86.0%
  23.9 
 pts
  113.1%
  94.1%
  19.0 
 pts
 
 
 
 
The following table reconciles net operating income (loss) and diluted operating earnings (loss) per share exclusive of catastrophe and prior year loss development financial impact to net operating income (loss) and diluted operating earnings (loss) per share for the periods indicated:
 
 
 
 For the Three Months Ended
 
 
 For the Nine Months Ended
 
 
 
 September 30,
 
 
 September 30,
 
 
 
2019
 
 
2018
 
 
2019
 
 
2018
 
 
 
 Amount
 
 
Diluted earnings per common share
 
 
 Amount
 
 
Diluted earnings per common share
 
 
 Amount
 
 
Diluted earnings per common share
 
 
 Amount
 
 
Diluted earnings per common share
 
(000’s except per common share amounts)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Operating Income and
Diluted Operating Earnings
per Share Exclusive of
Catastrophe and Prior
Year Loss Development
Financial Impact:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net operating income (loss)
 $(2,513)
 $(0.23)
 $3,656 
 $0.34 
 $(10,353)
 $(0.96)
 $4,193 
 $0.39 
 
    
    
    
    
    
    
    
    
Catastrophe and prior year loss development financial impact
 
    
    
    
    
    
    
Ceding commission revenue
  - 
    
  - 
    
  - 
    
  459 
    
Total expenses
  5,515 
    
  289 
    
  18,133 
    
  6,247 
    
Income from operations before taxes
  5,515 
    
  289 
    
  18,133 
    
  6,706 
    
Income tax expense
  302 
    
  25 
    
  1,365 
    
  1,119 
    
Total catastrophe and prior year loss development financial impact
  5,213 
 $0.48 
  264 
 $0.02 
  16,768 
 $1.56 
  5,587 
 $0.52 
 
    
    
    
    
    
    
    
    
Net operating income (loss) exclusive of catastrophe and prior year loss development financial impact
 $2,700 
 $0.25 
 $3,920 
 $0.36 
 $6,415 
 $0.60 
 $9,780 
 $0.91 
 
    
    
    
    
    
    
    
    
Weighted average diluted shares outstanding
  10,779,641 
    
  10,791,123 
    
  10,769,817 
    
  10,780,590 
    
 
 
 
 
The following table summarizes gross and net written premiums, net premiums earned, net loss and loss adjustment expenses and net loss ratio by major product type, which were determined based primarily on similar economic characteristics and risks of loss.
 
 
 
 For the Three Months Ended
 
 
 For the Nine Months Ended
 
 
 
 September 30,
 
 
 September 30,
 
 
 
 2019
 
 
 2018
 
 
 2019
 
 
 2018
 
 Gross premiums written:
 
 
 
 
 
 
 
 
 
 
 
 
 Personal lines
 $40,996,459 
 $32,544,609 
 $109,143,415 
 $87,022,189 
 Livery physical damage
  2,590,434 
  2,363,844 
  8,199,269 
  7,142,413 
 Other(1)
  401,073 
  69,486 
  535,950 
  186,285 
 Total without commercial lines
  43,987,966 
  34,977,939 
  117,878,634 
  94,350,887 
 Commercial lines (in run-off effective July 2019)(2)
  2,036,185 
  3,807,533 
  10,455,421 
  12,825,369 
 Total gross premiums written
 $46,024,151 
 $38,785,472 
 $128,334,055 
 $107,176,256 
 
    
    
    
    
 Net premiums written:
    
    
    
    
 Personal lines(3)
 $35,442,970 
 $30,352,772 
 $89,287,063 
 $69,016,575 
 Livery physical damage
  2,590,434 
  2,363,844 
  8,199,269 
  7,142,413 
 Other(1)
 400,317
 73,449 
 522,596
  169,709 
 Total without commercial lines
  38,433,721
  32,790,065 
  98,008,928
  76,328,697 
 Commercial lines (in run-off effective July 2019)(2)
  2,004,152 
  3,311,707 
  9,411,053 
  11,438,135 
 Total net premiums written
 $40,437,873
 $36,101,772 
 $107,419,981
 $87,766,832 
 
    
    
    
    
 Net premiums earned:
    
    
    
    
 Personal lines(3)
 $27,487,526 
 $21,537,581 
 $75,737,374 
 $56,809,219 
 Livery physical damage
  2,712,283 
  2,398,005 
  7,850,822 
  7,320,065 
 Other(1)
  275,324 
  56,091 
  392,745 
  150,942 
 Total without commercial lines
  30,475,133 
  23,991,677 
  83,980,941 
  64,280,226 
 Commercial lines (in run-off effective July 2019)(2)
  3,744,877 
  3,542,230 
  11,036,237 
  10,195,912 
 Total net premiums earned
 $34,220,010 
 $27,533,907 
 $95,017,178 
 $74,476,138 
 
    
    
    
    
 Net loss and loss adjustment expenses(4):
    
    
    
    
 Personal lines
 $14,389,168 
 $9,652,796 
 $46,666,275 
 $31,096,528 
 Livery physical damage
  1,395,630 
  894,874 
  3,816,390 
  3,160,670 
 Other(1)
  246,811 
  (63,570)
  573,376 
  313,408 
 Unallocated loss adjustment expenses
  726,778 
  548,819 
  2,072,570 
  1,654,466 
 Total without commercial lines
  16,758,387 
  11,032,919 
  53,128,611 
  36,225,072 
 Commercial lines (in run-off effective July 2019)(2)
  8,022,931 
  2,263,789 
  18,459,239 
  5,514,051 
 Total net loss and loss adjustment expenses
 $24,781,318 
 $13,296,708 
 $71,587,850 
 $41,739,123 
 
    
    
    
    
Net loss ratio(4):
    
    
    
    
Personal lines
  52.3%
  44.8%
  61.6%
  54.7%
Livery physical damage
  51.5%
  37.3%
  48.6%
  43.2%
Other(1)
  89.6%
  -113.3%
  146.0%
  207.6%
Total without commercial lines
  55.0%
  46.0%
  63.3%
  56.4%
 
    
    
    
    
 Commercial lines (in run-off effective July 2019)(2)
  214.2%
  63.9%
  167.3%
  54.1%
 Total
  72.4%
  48.3%
  75.3%
  56.0%
 
1.
“Other” includes, among other things, premiums and loss and loss adjustment expenses from our participation in a mandatory state joint underwriting association and loss and loss adjustment expenses from commercial auto.
2.
In July 2019, the Company decided that it will no longer underwrite Commercial Liability risks. See discussions above regarding the discontinuation of this line of business.
3.
See discussions above with regard to “Net Written Premiums and Net Premiums Earned”.
4.
See discussions above with regard to “Net Loss Ratio and Underlying Net Loss Ratio Excluding Commercial Lines”.
 
 
 
 
KINGSTONE COMPANIES, INC. AND SUBSIDIARIES
               
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited)
 
 
 
For the Three Months Ended
 
 
For the Nine Months Ended
 
 
 
September 30,
 
 
September 30,
 
 
 
2019
 
 
2018
 
 
2019
 
 
2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 Net premiums earned
 $34,220,010 
 $27,533,907 
 $95,017,178 
 $74,476,138 
 Ceding commission revenue
  1,029,582 
  1,044,529 
  2,982,960 
  4,430,855 
 Net investment income
  1,856,553 
  1,602,371 
  5,200,034 
  4,543,226 
 Net gains (losses) on investments
  998,162 
  352,025 
  3,712,180 
  (277,835)
 Other income
  495,696 
  353,077 
  1,191,569 
  961,581 
 Total revenues
  38,600,003 
  30,885,909 
  108,103,921 
  84,133,965 
 
    
    
    
    
 Expenses
    
    
    
    
 Loss and loss adjustment expenses
  24,781,318 
  13,296,708 
  71,587,850 
  41,739,123 
 Commission expense
  7,779,344 
  6,594,323 
  21,931,933 
  18,411,460 
 Other underwriting expenses
  6,430,734 
  5,193,679 
  17,983,174 
  15,301,168 
 Other operating expenses
  705,710 
  683,309 
  2,774,350 
  1,773,983 
 Depreciation and amortization
  646,201 
  440,383 
  1,876,202 
  1,273,975 
 Interest expense
  456,545 
  456,545 
  1,369,635 
  1,365,052 
 Total expenses
  40,799,852 
  26,664,947 
  117,523,144 
  79,864,761 
 
    
    
    
    
 (Loss) income before taxes
  (2,199,849)
  4,220,962 
  (9,419,223)
  4,269,204 
 Income tax (benefit) expense
  (474,687)
  287,232 
  (1,998,251)
  296,111 
 Net (loss) income
  (1,725,162)
  3,933,730 
  (7,420,972)
  3,973,093 
 
    
    
    
    
 Other comprehensive income (loss), net of tax
    
    
    
    
 Gross change in unrealized gains (losses)
    
    
    
    
 on available-for-sale-securities
  1,323,626 
  (242,453)
  9,191,817 
  (4,591,699)
 
    
    
    
    
 Reclassification adjustment for losses
    
    
    
    
 included in net income
  46,841 
  131,978 
  81,636 
  451,877 
 Net change in unrealized gains (losses)
  1,370,467 
  (110,475)
  9,273,453 
  (4,139,822)
 Income tax (expense) benefit related to items
    
    
    
    
 of other comprehensive income (loss)
  (287,798)
  12,416 
  (1,947,424)
  858,377 
 Other comprehensive income (loss), net of tax
  1,082,669 
  (98,059)
  7,326,029 
  (3,281,445)
 
    
    
    
    
 Comprehensive (loss) income
 $(642,493)
 $3,835,671 
 $(94,943)
 $691,648 
 
    
    
    
    
(Loss) Earnings per common share:
    
    
    
    
Basic
 $(0.16)
 $0.37 
 $(0.69)
 $0.37 
Diluted
 $(0.16)
 $0.36 
 $(0.69)
 $0.37 
 
    
    
    
    
Weighted average common shares outstanding
    
    
    
    
Basic
  10,779,641 
  10,681,329 
  10,769,817 
  10,672,084 
Diluted
  10,779,641 
  10,791,123 
  10,769,817 
  10,780,590 
 
    
    
    
    
Dividends declared and paid per common share
 $0.0625 
 $0.1000 
 $0.2625 
 $0.3000 
 
 
 
 
KINGSTONE COMPANIES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
 
 
 
 
 
 September 30,
 
 
 December 31,
 
 
 
2019
 
 
2018
 
 
 
 (unaudited)
 
 
 
 
 Assets
 
 
 
 
 
 
  Fixed-maturity securities, held-to-maturity, at amortized cost (fair value of
 
 
 
 
 
 
   $4,127,384 at September 30, 2019 and $4,426,416 at December 31, 2018)
 $3,825,505 
 $4,222,855 
  Fixed-maturity securities, available-for-sale, at fair value (amortized cost of
    
    
  $160,601,004 at September 30, 2019 and $155,431,261 at December 31, 2018)
  166,220,711 
  151,777,516 
 
     Equity securities, at fair value (cost of $22,070,565 at September 30, 2019 and
 
    
  $18,305,986 at December 31, 2018)
  23,499,199 
  16,572,616 
 Other investments
  2,425,904 
  1,855,225 
 Total investments
  195,971,319 
  174,428,212 
 Cash and cash equivalents
  25,639,050 
  21,138,403 
 Premiums receivable, net
  14,352,521 
  13,961,599 
 Reinsurance receivables, net
  26,580,449 
  26,367,115 
 Deferred policy acquisition costs
  20,491,568 
  17,907,737 
 Intangible assets, net
  500,000 
  670,000 
 Property and equipment, net
  7,582,210 
  6,056,929 
 Deferred income taxes, net
  540,295 
  354,233 
 Other assets
  6,762,909 
  5,867,850 
 Total assets
 $298,420,321 
 $266,752,078 
 
    
    
 Liabilities
    
    
 Loss and loss adjustment expense reserves
 $77,409,423 
 $56,197,106 
 Unearned premiums
  90,068,683 
  79,032,131 
 Advance premiums
  3,737,491 
  2,107,629 
 Reinsurance balances payable
  809,836 
  1,933,376 
 Deferred ceding commission revenue
  1,828,872 
  2,686,677 
 Accounts payable, accrued expenses and other liabilities
  8,403,012 
  6,819,231 
 Income taxes payable
  - 
  15,035 
 Long-term debt, net
  29,427,386 
  29,295,251 
 Total liabilities
  211,684,703 
  178,086,436 
 
    
    
 Commitments and Contingencies
    
    
 
    
    
 Stockholders' Equity
    
    
 Preferred stock, $.01 par value; authorized 2,500,000 shares
  - 
  - 
 
 Common stock, $.01 par value; authorized 20,000,000 shares; issued 11,811,011 shares
 
    
   at September 30, 2019 and 11,775,148 at December 31, 2018; outstanding
    
    
   10,783,572 shares at September 30, 2019 and 10,747,709 shares at December 31, 2018
  118,110 
  117,751 
  Capital in excess of par
  68,755,776 
  67,763,940 
  Accumulated other comprehensive income (loss)
  4,441,716 
  (2,884,313)
  Retained earnings
  16,132,568 
  26,380,816 
 
  89,448,170 
  91,378,194 
   Treasury stock, at cost, 1,027,439 shares at September 30, 2019
    
    
  and at December 31, 2018
  (2,712,552)
  (2,712,552)
 Total stockholders' equity
  86,735,618 
  88,665,642 
 
    
    
 Total liabilities and stockholders' equity
 $298,420,321 
 $266,752,078