Kingsway Financial Services Inc. today announced a third quarter reserve adjustment and the termination of acquisition discussions with a U.S. insurance company.
Kingsway General, one of Kingsway’s Canadian insurance subsidiaries, recently completed a comprehensive review of its open claims to ensure consistent reserving practices and instigated a concerted effort to close older files.
The review has resulted in an increase of approximately $30 million in Kingsway Financial’s provision for unpaid claims occurring prior to December 31, 2002, which will reduce its net income for the third quarter of 2003 by approximately $20 million.
The adverse development of Kingsway General’s prior years’ claims for the six months ended June 30, 2003 was approximately $30 million, reducing Kingsway Financial’s net income for the six month period by $20 million. These adjustments relate primarily to Kingsway General’s Alberta non-standard automobile business, Ontario commercial automobile business, and its trucking business.
Since the completion of the claims review, Kingsway General has experienced no significant additional adverse development of its unpaid claim amounts.
U.S. Acquisition Discussions Terminated
Kingsway Financial recently terminated our discussions regarding the acquisition of a U.S. insurance company that was previously disclosed in our U.S. prospectus relating to our trust preferred offering. The company says it is not engaged in any discussions regarding any other acquisition opportunities at this time.
http://www.newswire.ca/releases/September2003/26/c5286.html
Kingsway announces third quarter reserve adjustment
Terminates discussions with potential U.S. acquisition
- By: IE Staff
- September 26, 2003 September 26, 2003
- 14:30