Kroll Bond Rating Agency Assigns A- Insurance Financial Strength Rating to Kingstone Insurance Company

NEW YORK–(BUSINESS WIRE)– Kroll Bond Rating Agency (KBRA) has assigned an insurance financial strength rating (IFSR) of A- with a stable outlook to Kingstone Insurance Company (KICO). Additionally, KBRA has assigned an issuer rating of BBB- with a stable outlook to KICO’s publicly-traded parent, Kingstone Companies, Inc. (KINS) (NASDAQ:KINS). KICO is a New York-domiciled multi-line regional property/casualty insurer headquartered in Kingston, New York.

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The assigned ratings reflect the organization’s favorable underwriting results, experienced management team, sound capitalization, and comprehensive reinsurance program. KICO continues to report strong operating trends, with no adverse development the last few years and combined ratios that consistently outperform the property/casualty industry. The company’s favorable performance has been achieved through prudent underwriting practices, detailed claim reviews and proactive risk management. KICO’s seasoned management team brings extensive knowledge of the downstate New York market – New York City, Long Island and Westchester County – as well as niche product lines, pricing and underwriting. Moreover, the organization has successfully grown surplus organically and has a proven track record of accessing the capital markets, most recently in early 2017.

Balancing these strengths are KICO’s moderate premium leverage, geographic risk concentration, reliance on reinsurance and moderate premium growth. A substantial portion of KICO’s property exposure is concentrated on Long Island and New York City. However, this risk is significantly mitigated by its high-quality and comprehensive reinsurance program. This was evident in 2012 when Superstorm Sandy losses were reduced to a level that allowed KICO to generate an underwriting profit. KICO’s moderate premium leverage and top-line growth are also substantially offset by KINS’ recent capital contribution into KICO as well as KICO’s reasonable growth and geographic expansion plans.

The ratings are based on KBRA’s Global Insurer & Insurance Holding Company Rating Methodology published on April 21, 2016.

A full report is available on www.kbra.com.

About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

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Analytical Contacts:

Kroll Bond Rating Agency

Fred DeLeon, Director, 646-731-2352

fdeleon@kbra.com

or

Andrew Edelsberg, Managing Director, 646-731-2371

aedelsberg@kbra.com

or

Patrick Curboy, Senior Analyst, 646-731-2320

pcurboy@kbra.com

Source: Kroll Bond Rating Agency