TORONTO, June 14, 2011 /PRNewswire/ - (TSX: KFS) (NYSE: KFS) Kingsway Financial Services Inc. ("Kingsway" or the "Company") today announced its financial results for the first quarter ended March 31, 2011. All amounts are in U.S. dollars unless indicated otherwise.
The Company reported a first quarter net loss of
$18.4 million or loss of
$0.35 per share diluted. The book value has decreased from
$2.78 per share at
December 31, 2010 to
$2.47 per share at
March 31, 2011. The Company also carries a valuation allowance, in the amount of
$4.67 per share at
March 31, 2011, against the deferred tax asset primarily related to its loss carryforwards.
The following are the highlights of the first quarter of 2011:
- Kingsway adopted International Financial Reporting Standards ("IFRS") commencing with the presentation of its unaudited consolidated financial statements as at and for the three months ended March 31, 2011. Comparative results for 2010 have been restated to comply with IFRS. - On March 30, 2011, the Company closed the sale of its wholly owned subsidiary Hamilton Risk Management Company and its subsidiaries, including Kingsway Amigo Insurance Company, to Acadia Acquisition Partners, L.P. Kingsway will act as the general partner and hold a limited partnership investment.
- Net loss of $8.4 million was recorded in the Underwriting segment for the first quarter. - Net income of $1.0 million was recorded in the Agency and Non- underwriting segment for the first quarter. - Net loss of $9.7 million was recorded in the Corporate and Other segment for the first quarter. - An after-tax loss of $1.9 million (pre-tax loss of $2.3 million) was recorded on early settlement of a C$20.0 million receivable pertaining to the sale of wholly owned subsidiary Jevco Insurance Company ("Jevco") in March 2010. - A gain of $0.6 million was recorded upon finalizing the accounting for the sale of American Service Insurance Company, Inc. ("American Service") and American Country Insurance Company ("American Country"), which closed on December 31, 2010.