Kingsway Financial Services reports net income of US$3.1 million for first three quarters of 2015, compared to loss of US$13.7 million in same period in 2014

Kingsway Financial Services Inc. has reported a net income of US$3.1 million for the nine months ending Sept. 30 compared a net loss of US$13.7 million in the same prior year period.

Kingsway, a holding company functioning as a merchant bank with a focus on long-term value-creation that owns or controls stakes in several insurance industry assets, released its operating results for the third quarter and the nine months ending Sept. 30 on Friday. [click image below to enlarge]

In the third quarter, the company reported a net loss of US$0.9 million compared to a net loss of US$7 million in the third quarter of 2014; an operating loss of US$1.8 million compared to US$1.9 million for Q3 2014; and net investment income of US$0.8 million compared to US$0.5 million in the third quarter of 2014.

For the insurance underwriting segment specifically, operating loss – reflecting the company’s core operating activities, including its reportable segments, passive investment portfolio, merchant banking activities and corporate operating expenses – was US$0.2 million for the third quarter of 2015, compared to US$0.5 million for the third quarter of 2014. The Insurance Services segment operating loss was US$0.2 million for Q3 2015 compared to income of $0.4 million for the third quarter of 2014.

Larry G. Swets, Jr., president and CEO of Kingsway, said in a statement that during the third quarter, the company continued to gradually lower its legacy holding company expenses and manage its operating businesses more effectively. “We were pleased to report higher net premiums earned from our non-standard automobile business, and continue to manage the business to report incremental gains over the long-term,” he said. “Our operating results for the period were a continuation of this strategy. In addition, we reported increases in our net investment income that have helped to both grow our book value in 2015 and present an attractive yield to shareholders.”