Shareholders Hit Kingstone Insurance With Stock-Drop Suit

Law360 (June 13, 2019, 9:22 PM EDT) -- A proposed class of recent investors in Kingstone Insurance Co. filed suit in New York federal court Wednesday claiming careless internal financial controls and accounting methods led to some $5 million in unanticipated charges to the company's claims reserve.

Stockholders say Kingstone executives sent stock prices plummeting when announcing how these claims charges would negatively affect two key insurance industry profit indicators for the year.

Those indicators are the "combined ratio," which measures dividends, expenses and losses flowing out of an insurance company, and "catastrophe losses," an index quantifying the magnitude of insurance claims expected from major disasters.

Company executives announced...

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