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Kingsway reports net income of US$1.4 million in Q3 2016, compared to net loss of US$0.9 million in Q3 2015


October 21, 2016   by Canadian Underwriter


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Toronto-based Kingsway Financial Services Inc. has reported a net income attributable to common shareholders of US$1.4 million in the third quarter of 2016 ending Sept. 30, compared to a net loss attributable to common shareholders of US$0.9 million in the third quarter of 2015.

Financial results“We were pleased to report a solid and profitable quarter, highlighted by a gain on our business combination between 1347 Capital Corp. and Limbach Holdings, LLC,” Larry G. Swets, Jr., Kingsway president and chief executive officer said in a statement. “We were also pleased to close our previously announced acquisition of CMC Industries, Inc., which enables us to deploy capital while utilizing our deferred tax asset in a way that will build long-term economic value for our shareholders,” he added.

Kingsway released its financial results for Q3 and the nine months ending Sept. 30 on Friday. Despite the net income in the third quarter, for the first nine months of the year, Kingsway reported net loss attributable to common shareholders of US$0.7 million compared to net income attributable to common shareholders of US$3.1 million in the prior-year period.

For Q3, operating income was US$1 million for the third quarter of 2016 compared to operating loss of US$1.8 million for the third quarter of 2015.

The company’s Insurance Underwriting segment operating loss was US$0.1 million for the third quarter of 2016 compared to US$0.2 million for the third quarter of 2015. The Insurance Services segment operating income was US$0.6 million for the third quarter of 2016 compared to a segment operating loss of US$0.2 million for Q3 2015.

Net investment income of US$1 million was reported for the third quarter of 2016 compared to US$0.8 million for the third quarter of 2015, Kingsway said in the statement. Other operating income and expense was a net expense of US$2.6 million for the third quarter of 2016 compared to US$2.3 million for Q3 2015. Adjusted operating income was US$2 million for the third quarter of 2016 compared to US$0.1 million for the third quarter of 2015.

Kingsway is a holding company functioning as a merchant bank, the company said in the statement. It owns or controls stakes in several insurance industry assets and utilizes its subsidiaries, 1347 Advisors LLC and 1347 Capital LLC, to pursue opportunities acting as an advisor, an investor and a financier.