Queensway tumbles in second quarter

Queensway Financial Holdings Ltd. (TSE: QFH), recently the subject of a management purge by new U.S.-based majority stakeholders, has released its second quarter figures posting a significant loss over last year’s figures. For the first six months of 1999, the company reports a net earnings loss of $27.1 million in contrast to a net earnings gain of $9.6 million at the six month mark of 1998. The net loss figure includes a $31.5 million bill from discontinuing the operations of Queensway’s wholly owned subsidiary Paradigm Insurance Company. Net earnings from continuing operations were a dramatically better $4.4 million, still a marked decline from last year’s figures. Net earnings per share consequently declined, with earnings reaching a loss of $2.27 at six months 1999 compared to a gain of 71c a year ago.

On a positive note, gross written premiums increased over 60% due to the inclusion of figures from North Pointe Financial Services, Universal Fire, Pembridge Insurance Services and 50% of Consolidated Property & Casualty, all acquired in 1998, as well as strong premium growth from subsidiaries Sun States and Atlantic Alliance. Despite crumbling earnings, company revenues — due to the acquisitional growth — have doubled in 1999, from last year’s $62.3 million to $117.2 million at the 1999 six month mark.