Kingsway growth continues in second quarter (September 01, 2001)

Specialty auto insurer Kingsway Financial Services (TSE: 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 rose to a quarterly record of 33 a share, an increase of 57% over the 21 reported for second-quarter 2000. The annualized return on equity (ROE) for the period amounted to 15.6%, while the insurer’s combined ratio dropped to 98.4% compared with 100.6% recorded for the 2000 financial year.

The company’s U.S. operations were particularly busy, with gross written premiums up 88% for the first half of this year to $303.4 million from $161.3 million for the same period last year. The Canadian operations also performed well with a 19% rise in gross written premiums of $172.8 million for the six months to end June.

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.”