Kingsway Financial Services Inc. today announced the appointment of Scott Wollney to president and CEO of Lincoln General Insurance Company, following the retirement of John Clark, and the appointment of Lisa Gelsomino as president of Avalon Risk Management, Inc., succeeding Wollney.
Wollney was a co-founder of Kingsway’s Avalon subsidiary over 10 years ago and has over 18 years experience in transportation related and surety insurance. He has been president of Avalon since 2002, providing strategic direction and leadership during the company’s expansion. Avalon is an insurance agency and currently operates 10 offices across the United States representing several insurance companies, including Lincoln General. Wollney holds an MBA with a dual concentration in finance and strategy from Northwestern University’s, Kellogg School of Management. He is a sub-committee member in the U.S. Customs and Border Protection Trade Support Network and recently received the Transportation Intermediaries Associations Industry Advancement Award.
Gelsomino has been associated with the Kingsway group of companies for over 18 years and has been with Avalon since its formation in 1998 when she opened the New York regional office. In 2001, she relocated to Avalon’s corporate office in Elk Grove Village, Ill. where she oversees marketing, national account sales, and MGA operations, including programs with Lincoln General and other insurance companies. She also received her MBA from the Kellogg School of Management with concentrations in Marketing, Management, and International Business. In recognition of her industry contributions, she was previously highlighted by the Journal of Commerce as one of 25 Successful Women in International Trade.
Separately, Kingsway announced a net loss for the first quarter ended March 31.
Kingsway reported a net loss of US$34.4 million or 62¢ diluted per share on a 3.4% year-over-year increase in total revenue to US$474.5 million. Investment income increased 18% to US$37.4 million.
The net loss was primarily attributable to a further US$52.8 million reserve increase for estimated net unfavourable reserve developments for prior accident years at its Lincoln subsidiary and a US$12.2 million reserve increase at its Kingsway General subsidiary. As a result of the reserve development at Lincoln, a further US$8 million of valuation allowance was recorded against the future income tax asset for operating losses in the U.S.
“Our results for the first quarter of 2008 are unacceptable and we are working expeditiously to deal with problem areas and return to profitability as soon as possible,” says Shaun Jackson, president and CEO. “The additional reserves related primarily to Lincoln General’s trucking policies written for the 2007 accident year. The results were also negatively impacted by exceptionally bad winter weather in certain of our operating regions.”
“We continue to eliminate and reprice business at Lincoln and this has led to a change in its mix of business, in particular moving us away from the highly competitive commercial lines in the U.S. These reductions are being offset by increased premium levels from non-standard automobile through our Mendota subsidiary acquired in April 2007.”