Kingsway Financial Services Inc.

Kingsway Financial Services Inc.

Consolidated Statement of Income

For the periods ended December 31, 1995 and 1994

             
          ($ in Thousands, except for per share amounts)              
                         
                         
        Quarter ended:         Year ended:      
          31/12/95   31/12/94     31/12/95   31/12/94
        Forecast   Actual Actual   Forecast   Actual Actual
        (unaudited)   (unaudited) (unaudited)   (unaudited)   (audited) (audited)
                         
Gross premiums written       $17,950   $19,308 $9,576   $58,691   $60,049 $55,619
                         
Net premiums written       $15,188   $16,363 $7,599   $49,265   $50,440 $48,013
                         
Net earned premiums       $10,576   $12,757 $11,368   $43,882   $46,063 $42,414
Investment income       750   956 677   3,409   3,615 2,102
Premium finance income       275   274 284   1,299   1,298 1,234
        11,601   13,987 12,329   48,590   50,976 45,750
                         
Claims incurred       6,468   8,013 7,351   29,093   30,638 27,148
Commissions & premium taxes       1,770   2,182 1,664   7,470   7,882 7,170
General expenses       1,538   1,955 2,025   5,566   5,983 5,505
        9,776   12,150 11,040   42,129   44,503 39,823
                         
Income before income taxes       1,825   1,837 1,289   6,461   6,473 5,927
Income taxes       821   626 547   2,901   2,706 2,632
                         
Net income       $1,004   $1,211 $742   $3,560   $3,767 $3,295
                         
Earnings per share:                        
  basic:     $0.34   $0.39 $0.25   $1.19   $1.23 $1.10
  fully -diluted:     $0.34   $0.39 $0.25   $1.19   $1.23 $1.10
                         
Claims ratio       61.2%   62.8% 64.7%   66.3%   66.5% 64.0%
Expense ratio       31.2%   32.4% 32.4%   29.7%   30.1% 29.9%
Combined ratio       92.4%   95.2% 97.1%   96.0%   96.6% 93.9%
Return on equity                 19.3%   19.8% 21.9%
                         
                         
          Kingsway Financial Services Inc.              
          Consolidated Balance Sheets              
          As at December 31, 1995 and 1994              
          ($ in Thousands)              
                         
                  1995     1994
                      (audited)  
ASSETS                        
                         
  Cash & Investments               $61,870     $35,564
  Financed premiums receivable               12,914     11,211
  Deferred policy acquisition costs               3,830     2,980
  Accounts receivable               5,587     5,707
  Capital assets               2,173     1,558
  Other               1,431     1,097
                  $87,805     $58,117
                         
                         
LIABILITIES AND SHAREHOLDERS' EQUITY                        
                         
LIABILITIES                        
                         
  Unpaid claims               $24,322     $16,988
  Unearned premiums               23,920     19,543
  Accounts payable & accrued liabilities               1,350     653
  Note payable to Intercargo               -     2,500
  Other               1,536     1,776
                  51,128     41,460
                         
SHAREHOLDER'S EQUITY                        
                         
  Share capital               21,889     5,636
  Retained earnings               14,788     11,021
                  36,677     16,657
                         
                  $87,805     $58,117
                         
                         
                         
                         
          Kingsway Financial Services Inc.              
          Consolidated Statement of Changes in Financial Position              
          For the years ended December 31, 1995 and 1994              
          ($ in Thousands)              
                         
                  1995     1994
                         
                      (audited)  
Operating activities:                        
  Net income               $ 3,767     $ 3,295
  Items not involving cash:                      
    Amortization             244     233
    Deferred income taxes             (328)     (248)
    Net realized gain on sale of investments             (255)     (19)
    Amortization of bond premiums & discounts             (2,190)     (823)
                  1,238     2,438
                         
Net change in non-cash balances:                 9,751     8,866
                  10,989     11,304
                         
Financing activities                        
  Issuance of share capital, net               16,253     -
  Note payable to Intercargo               (2,500)     2,500
  Bank demand loan               -     (2,650)
                  13,753     (150)
                         
Investing activities:                        
  Purchase of investments               (144,061)     (39,936)
  Proceeds from sales of investments               117,924     33,114
  additions to capital assets               (809)     (393)
                  (26,946)     (7,215)
                         
Increase (decrease) in cash during year                 (2,204)     3,939
                         
Cash, beginning of year                 3,567     (372)
                         
Cash, end of year                 $1,363     $3,567

Last Updated on 5/1/99
By David Johnson