In a record-setting quarter, Kingsway Financial Services Inc. posted highs in earnings and underwriting profit, the company said Thursday.

The Toronto-base company, whose main business is insuring of automobile risks for drivers who do not meet the criteria for coverage by standard automobile insurers and trucking insurance, said net income for the first quarter ended March 31 jumped 50% to a $24.4 million, while earnings per share 48% to 49¢ a share (diluted). Underwriting profit also set a record, reaching $17.9 million vs $2.2 million Q1 last year.

Net premiums earned increasing 78% to $551.3 million while gross premiums written increased by 69% to $702.6 million. Both were quarterly records.

In a statement, Kingsway president and CEO Bill Star cited the “substantial improvement” in the results from the company’s Ontario private passenger automobile product as a result of remedial actions started in late 2002. “We continue to benefit from the positive pricing environment that is prevalent in all of our core lines of business and all our markets. This is a very good start to the year which we expect will be another record year for Kingsway.”

Other highlights include an improvement in the combined ratio to 96.8% vs 99.3% in Q1 last year, an annualized return on equity of 16.0% (vs 11.9%) and a book value per share of $12.35 (vs $11.37).

Total assets at March 31 were $3.08 billion, up from $2.98 billion at Dec. 31.