Kingsway third quarter swings to profit

Kingsway Financial Services, a provider of automobile insurance services, has reported a net income

Kingsway Financial Services, a provider of automobile insurance services, has reported a net income of $2.5m, or $0.05 per diluted share, for the third quarter of 2010, compared to net loss of $118.1m, or loss of $2.19 per diluted share for the same quarter of 2009.

Gross premiums written for the third quarter of 2010 were $62.8m, compared to $82.8m in the same quarter last year.

Kingsway has said that the significant reduction in premium volume is a reflection of the its strategy of discontinuing certain lines of business, primarily within its commercial lines.

An underwriting loss of $20.5m was recorded in the US segment for the third quarter ($63.6m year to date).

Net loss of $5.7m was recorded in the corporate segment for the third quarter (net loss of $8.3m for year to date).

Investment income increased to $0.3m compared to the same quarter last year.