Queensway regains profit momentum

Listed insurer, Queensway Finan- cial Holdings Ltd. (TSE:QFH) bounced back into the black in the first quarter of the current financial year, disclosing a 3 a share profit compared with a 47 a share loss for the same period the year prior.

The company suffered severe losses last year as a result of its troubled Paradigm U.S. operation. Paradigm had minimal impact on the company’s figures for the first quarter of this year whereas in the first quarter of 1999 it accounted for a $7.2 million loss, the directors observe.

Gross written premiums for the first quarter of the 2000 financial year rose by 13.9% with net earned premiums rising by 17.1%, this growth was largely achieved on the back of internal expansion, the directors say. The combined ratio for the first quarter came in at 105% compared with 103% reported at the end of the same period a year previous.

During the reporting period the company began taking steps to reduce its debt-to-capital ratio and paid back approximately $7.1 million in senior debt — which now stands at $49.3 million compared with $56.4 million at the end of the first quarter of 1999.