Kingsway reports profit

Kingsway Financial Services Inc. (TSX:KFS) saw a third-quarter profit increase of 22.5% due to a decrease in expenses, which resulted in offsetting a drop in revenues.The insurer of high-risk drivers also reported a net income of $37.5 million ($0.66 per share) for the 3Q of 2005, which represents an increase from $30.6 million ($0.54 per share) in the same period of 2004.However, the Company saw a 12% decrease in gross written premiums, which raised a profit of $543.9 million for the 3Q of 2005 as compared to $618.7 million in the same period last year. This decrease did not greatly affect Kingsway as a decrease in expenses of 5.4%f 5.4% to $550.9 million compensated for the decline.In addition, Kingsway’s underwriting profit decreased by 32% to $12.1 million whereas its investment income sat at $26.9 million an increase of 8%.Remaining relatively stable was the Company’s return on equity, which rose only 1.4% to 16.8% on an annualized basis, compared to 15.4% from the 3Q of 2004.