(May 3 – 17:10 ET) – Kingsway Financial Services Inc. has announced record financial results for the quarter ended March 31, 2001. Consolidated net income increased by 187% to $9,162,000, compared to $3,196,000 reported in the first quarter of last year.

Earnings per share before goodwill amortization increased 138% to 31 cents, compared to 13 cents for the first quarter of 2000. For the twelve-month trailing period, earnings per share before goodwill amortization increased to $1.15 for a fully diluted share.

During the first quarter of 2001, gross premiums written increased 61% to a quarterly record of $216,035,000, compared with $134,002,000 last year. Gross written premiums were $42,360,000 or 24% higher than the fourth quarter of 2000, which was the previous quarterly record. Written premiums from Canadian operations grew 20% to $67,387,000. Written premiums from U.S. operations increased 91% to $148,648,000 compared with $77,993,000 last year.

The continued growth in written premiums quarter-over-quarter has increased the amount of unearned premiums, the benefit of which will accrue in subsequent quarters. Unearned premiums as at March 31, 2001 grew to $321,228,000, an increase of 20% over the $268,208,000 reported at the end of 2000.

Investment income increased 39% to $13,509,000 compared with $9,691,000 for the first quarter of 2000.

Total assets as at March 31, 2001 grew to $1.27 billion. Book value per share increased by 17% to $8.47 from $7.22 a year ago. The investment portfolio increased to $833.3 million, compared to $787.5 million as at December 31, 2000. The investment portfolio represents $24.45 per common share at March 31, 2001.
-IE Staff