Kingsway’s Q3 profits increase 19%

Kingsway Financial Services Inc. (TSE:KFS, NYSE:KFS) announced that its third-quarter net income has increased 19% over the past year — from US$31.3 million in 2005 Q3 to US$37.4 million in 2006 Q3.
In addition, the company’s combined ratio improved to 97.2%, compared to 97.8% in 2005 Q3.
The company’s underwriting profit improved to US$12.7 million in 2006 Q3, compared to US$10 million last year. Its investment income increased 40%, to US$31.5 million, and annualized ROE was 16.8%
“Revenues and earnings continue to grow in line with our expectations,” Kingsway president and CEO Bill Star said in a press release. “Strong operating results, in particular from our Canadian operations, and increased investment income have resulted in a solid third quarter and first nine months of 2006.
“Our growth in earnings and excellent return on equity have also increased our capital strength, while reducing Kingsway’s operating leverage. Market conditions continue to be competitive, but we are starting to see indications of improvements, particularly in the U.S.
“Consistent with our operating strategy, we expect to continue to seize opportunities for profitable growth as they arise.”
In addition to releasing its third-quarter results, Kingsway announced the appointment of Robert T. E. Gillespie to the company’s board of directors.
Gillespie is a graduate of the Heriot-Watt University in Edinburgh and the Harvard Business School. During his career, Mr. Gillespie was formerly the chairman and CEO of General Electric Canada Inc. from
1992 to 2005.
“I am pleased to welcome Bob to the board of Kingsway Financial”, Star said. “I am confident that his experience and business knowledge will bring additional strength and an extra dimension to our board.”