Specialty insurer Kingsway Financial Services Inc. today said its first-quarter profit rose 52% as the company paid out fewer claims and made gains on its investment portfolio.

The insurer earned $46.8 million, or 82¢ a share, in the first three months of the year, up from $30.8 million, or 55¢ a share, in the year-earlier period.

Revenue slipped to $554.2 million from $613.9 million in the year-before period due to a 9% fall in gross written premiums to $643.6 million.

Underwriting profit, however, rose 82% to $18.9 million as the number of claims incurred fell 17% to $349.9 million.

Investment income rose 21% to $27.1 million, while return on equity on an annualized basis was 22.6%, compared with 16.9% last year.

Shares of Kingsway closed up 4¢ at $20.20 on the Toronto Stock Exchange. The earnings results were released after markets closed.