Specialty insurer Kingsway Financial Services Inc. is reporting a 26% rise in profit for the first quarter ended March 31.

The insurer of high-risk drivers, said first-quarter profit rose despite a rising Canadian dollar. Kingsway has substantial U.S. operations and assets.

The company said net income was $30.8 million, or 55¢ a share, up from $24.4 million, or 49¢ a share, in the year-ago quarter.

Quarterly revenue climbed to $613.9 million from $566.3 million, while gross premiums rose to $710.4 million from $702.6 million.

Annualized return on equity rose to 16.9% from 16%.

“We are particularly encouraged by the strong improvement in results from our Canadian operations as a result of rate increases and claims fraud initiative we have implemented,” said Bill Star, president and CEO, in a news release.

“We are well positioned to take advantage of the prevailing insurance market conditions, and see no softening of rates in any of our business lines. The short maturity profile of our investment portfolio also means we are poised to benefit when interest rates rise,” he added.

The company also announced the appointment of John Clark to the position of president and CEO of subsidiary Lincoln General Insurance Co., replacing Gary Bhojwani who has accepted a position outside of the company.

Tom Ossmann has been appointed as resident and CEO of American Service Insurance Co., another Kingsway subsidiary.