Kingsway grows in Q2 (August 04, 2005)

Kingsway Financial Services Inc. financial results for the second quarter and six months ended June 30, 2005 indicate that the Company’s net income increased 10% to $36.7 million compared to $33.3 million in the second quarter of 2004.
The Company set a record net income for the six months ended June 30, 2005 of $83.5 million, an increase of 30% above last years recorded $64.1 million.
Annualized return on equity (ROE) was 16.8% in the quarter compared to 17.2% in the same quarter of 2004 and 19.7% for the year-to-date compared to 17% for the same period last year. Diluted earnings per share increased 10% to $0.65 compared to $0.59 for the same period last year.
Diluted earnings per share for the six-month period jumped 29% to $1.47 compared to last year’s $1.14.
“Our determination to not sacrifice underwriting profitability has led to a decline in premiums written from our U.S. non-standard automobile business in 2005 however, it has helped protect our overall profitability," Bill Star, president & CEO, says. "As we face more competitive conditions in certain markets we believe that Kingsway will benefit from its geographic and product diversification, and we remain committed to maintaining adequate pricing levels for our specialty products.”
Previously, Kingsway saw unfavourable conditions regarding unpaid claims. This was in the period before Jan. 1, 2005. this was related to a ceased truck program, Alberta auto and Canada’s trucking.
During the first six months of 2005
A net unfavourable reserve development of $8.2 million 0.4% unpaid claims was recorded for the first half of 2050 but unpaid claims provisions grew 4% to $2,120.6 million compared to $2,030.4 million 2004 year end results.