Kingsway earnings continue to soar

Specialty insurer Kingsway Financial Services (TSE: KFS) capped off a successful 2001 financial year with record earnings and revenue for the last quarter. The specialty insurer’s net income increased to $10 million from $7.4 million for the same period in 2000. Earnings rose to a record 23 a share for the last quarter of 2001, up from the 22 a share posted for the same period a year prior.

Gross premiums written rose by 68% to $291.6 million from $173.7 million, while earned premiums jumped a staggering 86% to $278.4 million for the quarter. The company’s full year numbers were similarly impressive, with net income rising 64% to $44.9 million from $27.5 million recorded in 2000. This translates to earnings of $1.19 a share compared with the 80 a share posted the year prior. This was achieved on the back of gross written premium growth from both the U.S. and Canadian operations — although this was mostly evident in the U.S. markets which doubled in premium to $709.2 million from the previous year’s $353.6 million. Earned premiums for 2001 amounted to $872.8 million, reflecting a 62% year-on-year gain.

Notably, Kingsway produced an underwriting profit of $7.6 million for 2001 compared with a loss of $5.3 million for 2000. CEO Bill Star says the results are “particularly satisfying given the deteriorating results of our industry in Canada and the U.S.”.