Specialty insurer Kingsway Financial Services Inc. is reporting improved income for the third quarter ended September 30. Net income for the third quarter increased 51% to a new quarterly record of $21.7 million compared to $14.3 million last year.

Diluted earnings per share for the third quarter was a quarterly record 44 cents, an increase of 22% over 36 cents in the same quarter of 2001, despite 24% more shares outstanding.

“We are very pleased with the record levels of net income, earnings per share and written premiums for the quarter and for the year-to-date”, said Bill Star, president and CEO.

During the quarter, gross premiums written increased 104% to a quarterly record of $605.6 million compared with $297.5 million in the third quarter last year. Gross premiums written were $102.9 million or 20% higher than the second quarter of 2002, the previous quarterly record.

The combined ratio for the third quarter 2002 was 101.2% (100.3% year-to- date) compared to 96.4% (97.9% year-to-date) last year.

The expense ratio for the quarter was 28.9% (28.6% year-to-date) compared with 26.5% (27.9% year-to-date) last year.