Kingsway projects $55 million hit in 2010 Q4 results

Kingsway Financial Services Inc. (TSX: KFS) said it expects to report a $55 million hit in its 2010 Q4 results.
Kingsway will release its finalized results on March 30. It projects:
• approximately $21 million of loss reserve strengthening in its insurance companies;
• approximately $10 million of non-cash impairments and adjustments to certain operating assets and liabilities;
• the remainder of the expected decline will result from 2010 Q4 results of operations and expenses of the holding company, including interest expense.
“These results are disappointing but reflect the continued restructuring that is required to move forward,” said Larry G. Swets Jr., Kingsways’ president and CEO.
“Immediate action was taken in the fourth quarter to address the operating results, and we feel confident our business units are now focused solely on profitability. We still remain challenged by operational profitability, corporate overhead expense and interest expense. We will continue to address these challenges with further strategic actions.”