Kingsway growth continues in second quarter (August 09, 2001)

Specialty auto insurer Kingsway Financial Services (TSE: KFS; NYSE: KFS) continues to see growth in premiums and earnings mid-way through 2001. In a press release, Kingsway CEO Bill Star notes that the company is reporting record profits, earnings per share and premium levels for the second quarter of the year, and in year-to-date totals.Net income increased 59% for the second quarter of 2001, up to $11.4 million, from $7.2 million for the same period last year. This brings net income for the half-year to $20.6 million, an increase of 98% over the first half of 2000.Earnings per share also rose, to a new quarterly record of $0.33, an increase of 57% over the $0.21 reported for second-quarter 2000. Annualized return on equity comes in at 15.6% and the company’s combined ratio dropped to 98.4% overall, compared with 100.6% in 2000.The company’s U.S. operations were particularly busy, with gross written premiums growing 88% in the first half of the year, to $303.4 million from $161.3 million last year. But the news was good for Canadian operations as well, which saw an increase in gross written premiums of 19% for the half, to $172.8 million from $144.8 million last year.Star says he is pleased with the results as they lay the groundwork for future growth. “For the third consecutive quarter we have reported record written premiums which will translate into higher levels of earned premiums in future quarters.”