DAILY NEWS Nov 9, 2007 4:44 PM - 0 comments

Kingsway’s Canadian operations’ Q3 results strengthen

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Kingsway Financial Services Inc. reported a 37% decrease — to US$23.6 million — in Q3 profits over 2006.
For the first nine months of the year the company earned a profit of US$85 million, a 20% decrease over the same period of 2006.
Net written premiums in the company’s Canadian operations increased 6% to US$140.6 million for 2007 Q3, a Kingsway statement says.
Underwriting profit for the entire organization decreased 159% to a loss of US$7.5 million, and the company’s combined ratio increased 4.4% to 101.6% compared to 2006 Q3.
“We are very pleased with the profitability of each of our Canadian subsidiaries for the quarter and year-to-date,” Bill Star, president and CEO, Kingsway Financial Services Inc., said in a statement.
While Kingsway’s Canadian operations reported improved levels of underwriting profit and investment income over last yea’s Q3, the company’s U.S. operations took a hit.
“The results of our U.S. operations were heavily influenced by Lincoln General, where estimated unfavourable reserve development led to the company reporting an underwriting loss for the quarter and the year to date,” Star added.
The company statement also contained a prediction that industry combined ratios will deteriorate for the remainder of 2007 and into 2008, but remain better than historical averages.
“We also expect that deteriorating combined ratios together with low interest rates will lead to firmer pricing in insurance markets in many jurisdictions in North America during 2008.”
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