A Toronto-based financial services company reported a significant drop in its gross written premiums and revenue last week.
Kingsway Financial Services, which writes non-standard auto insurance through US subsidiaries, lost 11.3% in gross written premiums, falling from $128.6 million in 2013 to $114 million in 2014.
Overall, the company lost $11.2 million last year, with revenues falling to $188 million. The 2014 loss was down 69% from the previous year’s loss of $36 million, with revenues at $172 million.
Book value also decreased to $2.12 per share at the end of the year, down from $2.25 per share at the same period in 2013.
Other financial results for the company include a fourth quarter net income of $1.35 million, up from a net loss of $10.65 million in the same period the year previous. Overall investment income fell 26% in 2014, from $2.186 million in 2013 to $1.616 million in the past year.
Kingsway last year repaid roughly $14 million on 7.5% senior unsecured debentures issued 10 years previously.
The company also completed an initial public offering of one of its old subsidiaries, 1347 Property insurance Holdings Inc., which was formerly known as Maison Insurance Holdings.
Kingsway writes its non-standard auto policies in 15 US states through its subsidiaries, which include Mendakota Insurance Company, Kingsway Amigo Insurance Company, Universal Casualty Company, Mendota Insurance Company and Kingsway Reinsurance Corp.
Kingsway attributed the loss primarily to “decreased premium volumes at Amigo, reflecting the actions begun by the Company during the fourth quarter of 2012 to place Amigo into voluntary run-off,” according to a statement released by the company.
Larry G. Swets, president and CEO of Kingsway, remained positive, highlighting several of the firm’s accomplishments last year.
“During 2014, we have repaid our senior debt, raised capital, completed the IPO of our former subsidiary and completed the redemption of our Series A Warrants,” Swets said. “This result indicates momentum in our progress towards building long-term value.”
