Canadian Underwriter
News

Kingsway Q1 success driven by U.S. operations


May 2, 2002   by Canadian Underwriter


Print this page Share

At its AGM in Toronto today, Kingsway Financial Services (TSE, NYSE: KFS) marked yet another record quarter, with net income rising 77% year-on-year for the first three months of 2002. Net income is at $16.3 million versus $9.2 million for the first quarter 2001.
The result is earnings per share of $0.33 for the quarter, compared to $0.27 last year. The jump is largely the result of the performance of U.S. operations, which now account for about 75% of Kingsway’s business, says CEO Bill Star.
Gross written premiums (GWP) increased 118% for U.S. operations, and 37% for Canadian operations. Overall GWP grew by 93% for the quarter, to $416.4 million, versus $216.0 million in Q1 2001. Non-standard auto premiums grew 57%, while trucking and commercial auto premiums grew 211%, the result of “favorable rate increases and contraction of competitive markets”.
Net premiums written also rose 93% in the quarter, to $400.3 million, from $207.0 million in 2001. Net earned premiums were up 91%, to $310.4 million, from $162.2 million last year for the same quarter. Earned premiums for U.S. operations grew 133%, while Canadian operations grew 29%. Unearned premiums were $516.7 million at the end of March, 2002, versus $424.1 million at 2001 yearend.
The company’s combined ratio improved to 99.3%, producing an underwriting profit of $2.2 million, a substantial jump over Q1 2001’s profit of $0.5 million. However, Ontario auto results dragged the Canadian operations’ combined ratio up to 107.6%, versus the U.S. ratio of 96.2%.
Kingsway’s investment income rose slightly during the quarter, to $13.7 million, from $13.5 million last year, with realized gains of $3.7 million this year versus $1.9 million in 2001.
The company’s book value per share also increased 34%, to $11.37 from $8.47 last year at this time.


Print this page Share

Have your say:

Your email address will not be published. Required fields are marked *

*