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Kingstone Companies (NASDAQ:KINS) said Thursday it’s no longer considering proposals from Griffin Highline Capital, an existing shareholder of KINS, to buy the property and casualty insurer, according to a letter written by the company’s board Thursday.
The primary reason behind halting further takeover discussions with Griffin was Kingstone’s (KINS) focus on refinancing its debt. The insurer started exploring a potential sale, engaging TigerRisk Capital Markets & Advisory as a financial advisor, following its Q3 2021 operational review.
“There was added complexity in concluding a debt refinancing at the same time that we were engaged in a potential sale process,” the board explained.
The board noted the company remains “open to engagement on any transaction that will enhance stockholder value, and continue to work with TigerRisk in this regard.”
In its goal to return to profitability, Kingstone (KINS) highlighted a number of actions that have taken effect during 2022, including implementing “advanced rate segmentation with Kingstone Select, updated replacement costs to address inflation and executed several expense reduction initiatives including a planned reduction in agent commissions for 2023.”
Also, “in light of the ‘hard’ catastrophe reinsurance market, we have planned for potential future pricing increases ahead of this year’s renewal period to help us manage any further rise in costs.”
Previously, (Nov. 15) Kingstone stock slipped as inflationary pressure weighed on Q3 results; suspends dividend.