Kingsway Financial Services Inc. is reporting record financial results for the quarter and nine months ended September 30.

Net income for the third quarter increased 47% to a new quarterly record of $14.3 million compared to $9.7 million last year.

Net income for the nine month period was $34.9 million, an increase of 74% over the $20.1 million reported last year.

Fully diluted earnings per share for the third quarter were a record 36¢, an increase of 29% over 28¢ cents despite 17% more shares outstanding. For the nine month period, fully diluted earnings per share were 96¢ compared to 58¢ last year.

“It is very pleasing to again report record earnings and premium revenues for the quarter and for the first nine months of the year. It is particularly gratifying to see the benefit of maintaining our disciplined operating strategy during the soft market conditions in 1999 and 2000 is now starting to come through in our results”, said Bill Star, president and CEO.

“Increased pricing levels as well as a contraction of underwriting capacity in North American markets are creating unprecedented opportunities for us. We are benefiting from these market conditions as the industry refocuses on improving its underwriting results, and as a result, I continue to be very optimistic about our future results and prospects.”

During the third quarter of 2001 gross premiums written increased 82% to a quarterly record of $297.5 million compared with $163.2 million last year.. For the year-to-date, gross premiums written increased by 65% to $773.7 million compared to $469.3 million last year. Kingsway attributes the growth in written premiums to its core business lines of non-standard automobile which increased by 53%, and trucking which increased by 185%.

Total assets at September 30 grew to $1.54 billion. Book value per share increased by 23% to $9.63 from $7.83 a year ago. The investment portfolio, including cash and accrued investment income, increased to $1.03 billion (market value $1.04 billion), compared to $787.5 million (market value $787.1 million) as at December 31, 2000.