Kingsway 2006 Q3 profits increase 19%

Kingsway Financial Services Inc. (TSE:KFS, NYSE:KFS) says its 2006 Q3 net income increased 19% over the past year — from US$31.3 million in 2005 Q3 to US$37.4 million in 2006 Q3.

In addition, the company’s combined ratio improved to 97.2%, compared to 97.8% in 2005 Q3.

The company’s underwriting profit improved to US$12.7 million in 2006 Q3, compared to US$10 million last year. Its investment income increased 40%, to US$31.5 million, and annualized ROE was 16.8%

“Revenues and earnings continue to grow in line with our expectations,” Kingsway president and CEO Bill Star said in a press release. “Strong operating results, in particular from our Canadian operations, and increased investment income have resulted in a solid third quarter and first nine months of 2006.

“Our growth in earnings and excellent return on equity have also increased our capital strength, while reducing Kingsway’s operating leverage. Market conditions continue to be competitive, but we are starting to see indications of improvements, particularly in the U.S.

“Consistent with our operating strategy, we expect to continue to seize opportunities for profitable growth as they arise.”