KINGSWAY FINANCIAL SERVICES INC.
CONSOLIDATED STATEMENT OF INCOME
For the periods ended June 30, 1996 and 1995
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($ in Thousands, except for per share amounts) |
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Quarter ended June 30: |
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Six months ended June 30: |
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1996 |
1996 |
1995 |
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1996 |
1996 |
1995 |
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Actual |
Forecast |
Actual |
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Actual |
Forecast |
Actual |
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(Unaudited) |
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(Unaudited) |
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Gross premiums written |
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$39,097 |
$24,575 |
$16,000 |
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$60,953 |
$45,000 |
$26,569 |
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Net premiums written |
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$35,760 |
$20,007 |
$13,469 |
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$62,096 |
$37,201 |
$21,970 |
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Net earned premiums |
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$27,377 |
$18,020 |
$11,117 |
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$43,032 |
$34,898 |
$21,731 |
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Investment income |
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1,602 |
1,042 |
1,106 |
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2,882 |
1,875 |
1,818 |
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Premium finance income |
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402 |
463 |
204 |
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730 |
833 |
404 |
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29,381 |
19,525 |
12,427 |
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46,644 |
37,606 |
23,953 |
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Claims incurred |
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16,734 |
11,700 |
6,897 |
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26,862 |
23,000 |
14,181 |
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Commissions & premium taxes |
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4,833 |
3,093 |
1,881 |
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7,351 |
5,991 |
3,604 |
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General expenses |
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3,425 |
1,787 |
1,375 |
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5,488 |
3,575 |
2,894 |
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24,992 |
16,580 |
10,153 |
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39,701 |
32,566 |
20,679 |
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Income before income taxes |
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4,389 |
2,945 |
2,274 |
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6,943 |
5,040 |
3,274 |
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Income taxes |
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1,171 |
1,208 |
1,016 |
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2,133 |
2,068 |
1,467 |
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Net income |
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$3,218 |
$1,737 |
$1,258 |
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$4,810 |
$2,972 |
$1,807 |
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Earnings per share: |
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basic: |
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$0.64 |
$0.36 |
$0.42 |
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$0.96 |
$0.62 |
$0.60 |
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fully -diluted: |
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$0.59 |
$0.36 |
$0.42 |
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$0.90 |
$0.61 |
$0.60 |
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Claims ratio |
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61.1% |
64.9% |
62.0% |
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62.4% |
65.9% |
65.3% |
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Expense ratio |
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30.2% |
27.1% |
29.3% |
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29.8% |
27.4% |
29.9% |
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Combined ratio |
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91.3% |
92.0% |
91.3% |
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92.3% |
93.3% |
95.2% |
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Underwriting profit |
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$2,385 |
$1,440 |
$964 |
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$3,331 |
$2,332 |
$1,052 |
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KINGSWAY FINANCIAL SERVICES INC. |
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CONSOLIDATED BALANCE SHEET |
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As at June 30, 1996 and 1995 |
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($ in Thousands) |
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1996 |
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1995 |
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(Unaudited) |
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ASSETS |
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Cash & Investments |
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$99,207 |
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$40,680 |
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Financed premiums receivable |
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26,129 |
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11,241 |
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Deferred policy acquisition costs |
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11,366 |
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4,214 |
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Amounts due from reinsurers |
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26,779 |
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5,569 |
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Accounts receivable |
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10,207 |
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4,906 |
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Capital assets |
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5,258 |
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1,486 |
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Other |
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1,460 |
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606 |
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$180,406 |
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$68,702 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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LIABILITIES |
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Unpaid claims |
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$68,863 |
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$21,433 |
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Unearned premiums |
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55,827 |
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22,883 |
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Accounts payable & accrued liabilities |
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6,963 |
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2,552 |
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Note payable to Intercargo |
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- |
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2,437 |
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Other |
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1,002 |
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933 |
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132,655 |
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50,238 |
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SHAREHOLDER'S EQUITY |
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Share capital |
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24,218 |
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5,636 |
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Share warrant |
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3,935 |
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- |
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Retained earnings |
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19,598 |
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12,828 |
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47,751 |
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18,464 |
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$180,406 |
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$68,702 |
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KINGSWAY FINANCIAL SERVICES INC. |
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CONSOLIDATED STATEMENT OF CHANGES IN FINANCIAL POSITION |
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For the periods ended June 30, 1996 and 1995 |
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($ in Thousands) |
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1996 |
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1995 |
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(Unaudited) |
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Operating activities: |
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Net income |
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$4,810 |
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$1,807 |
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Items not involving cash: |
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Amortization |
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160 |
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112 |
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Deferred income taxes |
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(433) |
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- |
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Net realized gain on sale of investments |
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(52) |
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(188) |
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Amortization of bond premiums & discounts |
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(666) |
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(1,050) |
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3,819 |
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681 |
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Net change in non-cash balances: |
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18,739 |
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3,731 |
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22,558 |
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4,412 |
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Financing activities |
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Issuance of share capital, net |
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2,329 |
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- |
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Share warrant |
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3,935 |
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- |
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Note payable to Intercargo |
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- |
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(62) |
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Bank indebtedness |
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(1,480) |
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- |
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4,784 |
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(62) |
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Investing activities: |
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Purchase of investments |
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(95,657) |
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(36,925) |
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Proceeds from sales of investments |
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78,209 |
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31,176 |
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Purchase of subsidiary |
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(5,209) |
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- |
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Additions to capital assets |
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(3,048) |
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(16) |
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(25,705) |
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(5,765) |
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Increase (decrease) in cash during period |
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1,637 |
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(1,415) |
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Cash, beginning of period |
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1,363 |
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3,567 |
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Cash, end of period |
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$3,000 |
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$2,152 |
