(February 22 – 15:10 ET) – Kingsway Financial Services Inc. is reporting greatly improved results for the fourth quarter and year ended December 31.

Net income for the fourth quarter was $7.4 million, compared with a loss of $12.6 million in the same quarter last year. Net income for the year was $27.5 million, more than double the $13.6 million for fiscal 1999.

Basic and fully diluted earnings per share were a fourth quarter record of 22¢, compared with the 35¢ loss reported in the same quarter last year. Basic earnings per share for the year were 81¢ an increase of 113% from the 38¢ last year.

“I am very pleased with the improvement in earnings as well as the significant internal growth during the year”, said Bill Star, president and CEO.

During the fourth quarter, gross premiums written increased by 47% to a record quarterly level of $173.7 million. Net premiums written grew by 51% to $162.1 million. For the year, gross premiums written grew 26% to $643.0 million, and net premiums written increased 29% to $604.7 million, again reaching record levels.

Gross premiums written for Kingsway’s Canadian operations grew 24% to $289.4 million and gross premiums written for the U.S. operations grew 29% to $353.6 million compared to last year. Net premiums earned for the quarter increased 36% to a record $149.4 million (21% year-to-date to a record $540 million).

The combined ratio improved to 101% for the year compared to 102.6% in 1999. The combined ratio for the Canadian operations was 101.8% and the combined ratio for U.S. operations was 100.9% for the year.

Investment income for the quarter increased 48% to $12 million (18% to $44.6 million for the year) from $8.1 million in the fourth quarter of 1999, reflecting the strong performance of the company’s value oriented equity portfolio.
-IE Staff