Specialty insurer Kingsway Financial Services Inc. is reporting reduced third-quarter profit due to an increase in its provision for unpaid claims.
as the specialty insurer took a hit from an adjustment to its reserves.
The company said net profit was $15.6 million, or 28¢ a share, down from $21.7 million, or 44¢ a share, a year ago.
Revenue rose to $630.9 million from $505.3 million in the year-before quarter. Quarterly gross premiums rose 8% to $652.8 million.
The company’s third-quarter results were affected by increases in its provision for unpaid claims occurring prior to Dec. 31 of about $61.5 million, or $41 million after tax.
Kingsway said last month it would take a hit from an adjustment to its reserves, but that it expected an after-tax benefit from realized investment gains.
“During the first eight months of this year we have made a concerted effort to review and strengthen our claim reserves”, said Bill Star, president and CEO.
Kingsway shares closed down 12¢ at $12.88.