Kingsway Financial Services Inc. Kingsway Financial Services Inc.
For the periods ended December 31, 1996 and 1995
| ($ in Thousands, except for per share amounts) | ||||||||||
| Quarter ended December 31: > | Year ended December 31: | |||||||||
| 1996 | 1996 | 1995 | 1996 | 1995 | ||||||
| Actual | Forecast | Actual | Actual | Forecast | Actual | |||||
| (Unaudited) | ||||||||||
| Gross premiums written | $37,776 | $23,675 | $19,308 | $140,610 | $93,400 | $60,049 | ||||
| Net premiums written | $34,009 | $19,968 | $16,363 | $134,121 | $78,750 | $50,440 | ||||
| Net earned premiums | $33,642 | $14,408 | $12,757 | $107,679 | $66,964 | $46,063 | ||||
| Investment income | 4,538 | 1,428 | 956 | 9,181 | 4,543 | 3,615 | ||||
| Premium finance income | 621 | 606 | 274 | 1,868 | 1,990 | 1,298 | ||||
| 38,801 | 16,442 | 13,987 | 118,728 | 73,497 | 50,976 | |||||
| Claims incurred | 23,769 | 9,623 | 8,013 | 69,889 | 44,123 | 30,638 | ||||
| Commissions & premium taxes | 7,461 | 2,524 | 2,182 | 21,523 | 11,546 | 7,882 | ||||
| General expenses | 3,178 | 1,623 | 1,955 | 11,560 | 6,986 | 5,983 | ||||
| 34,408 | 13,770 | 12,150 | 102,972 | 62,655 | 44,503 | |||||
| Income before income taxes | 4,393 | 2,672 | 1,837 | 15,756 | 10,842 | 6,473 | ||||
| Income taxes | 500 | 1,099 | 626 | 4,594 | 4,451 | 2,706 | ||||
| Net income | $3,893 | $1,573 | $1,211 | $11,162 | $6,391 | $3,767 | ||||
| Earnings per share: | ||||||||||
| basic: | $0.32 | $0.16 | $0.18 | $1.04 | $0.66 | $0.61 | ||||
| fully -diluted: | $0.31 | $0.16 | $0.18 | $0.99 | $0.65 | $0.61 | ||||
| Claims ratio | 70.7% | 66.8% | 62.8% | 64.9% | 65.9% | 66.5% | ||||
| Expense ratio | 31.6% | 28.8% | 32.4% | 30.7% | 27.7% | 30.1% | ||||
| Combined ratio | 102.3% | 95.6% | 95.2% | 95.6% | 93.6% | 96.6% | ||||
| Underwriting profit (loss) | ($766) | $638 | $607 | $4,707 | $4,309 | $1,560 | ||||
| Return on Equity | 19.6% | 14.9% | 21.9% | 21.2% | 16.1% | 19.8% | ||||
| Forecast amounts are from the Company's IPO Prospectus dated December 1995. | ||||||||||
| Per share amounts are after giving effect to the 2 for 1 subdivision of shares in October 1996. | ||||||||||
| KINGSWAY FINANCIAL SERVICES INC. | ||||||||||
| CONSOLIDATED BALANCE SHEET | ||||||||||
| As at December 31, 1996 and 1995 | ||||||||||
| ($ in Thousands) | ||||||||||
| 1996 | 1995 | |||||||||
| ASSETS | ||||||||||
| Cash & Investments | $157,827 | $61,870 | ||||||||
| Financed premiums receivable | 30,182 | 12,914 | ||||||||
| Deferred policy acquisition costs | 13,060 | 5,210 | ||||||||
| Amounts due from reinsurers | 27,637 | 6,967 | ||||||||
| Accounts receivable | 12,580 | 5,587 | ||||||||
| Capital assets | 5,622 | 2,173 | ||||||||
| Other | 1,880 | 880 | ||||||||
| $248,788 | $95,601 | |||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
| LIABILITIES | ||||||||||
| Unpaid claims | $90,656 | $29,486 | ||||||||
| Unearned premiums | 64,064 | 27,463 | ||||||||
| Accounts payable & accrued liabilities | 4,096 | 1,350 | ||||||||
| Other | 2,783 | 625 | ||||||||
| 161,599 | 58,924 | |||||||||
| SHAREHOLDERS' EQUITY | ||||||||||
| Share capital | 59,037 | 21,889 | ||||||||
| Share warrant | 2,202 | - | ||||||||
| Retained earnings | 25,950 | 14,788 | ||||||||
| 87,189 | 36,677 | |||||||||
| $248,788 | $95,601 | |||||||||
| KINGSWAY FINANCIAL SERVICES INC. | ||||||||||
| CONSOLIDATED STATEMENT OF CHANGES IN FINANCIAL POSITION | ||||||||||
| For the years ended December 31, 1996 and 1995 | ||||||||||
| ($ in Thousands) | ||||||||||
| 1996 | 1995 | |||||||||
| Operating activities: | ||||||||||
| Net income | $11,162 | $3,767 | ||||||||
| Items not involving cash: | ||||||||||
| Amortization | 465 | 244 | ||||||||
| Deferred income taxes | (1,049) | (328) | ||||||||
| Net realized gain on sale of investments | (2,778) | (255) | ||||||||
| Amortization of bond premiums & discounts | (1,029) | (2,190) | ||||||||
| 6,771 | 1,238 | |||||||||
| Net change in non-cash balances: | 37,766 | 9,751 | ||||||||
| 44,537 | 10,989 | |||||||||
| Financing activities | ||||||||||
| Issuance of share capital, net | 37,148 | 16,253 | ||||||||
| Share warrant | 2,202 | - | ||||||||
| Bank demand loan | (1,480) | - | ||||||||
| Note payable to Intercargo | - | (2,500) | ||||||||
| 37,870 | 13,753 | |||||||||
| Investing activities: | ||||||||||
| Purchase of investments | (241,406) | (144,061) | ||||||||
| Proceeds from sales of investments | 169,675 | 117,924 | ||||||||
| Purchase of subsidiary | (4,343) | - | ||||||||
| Additions to capital assets | (3,531) | (809) | ||||||||
| (79,605) | (26,946) | |||||||||
| Increase (decrease) in cash during period | 2,802 | (2,204) | ||||||||
| Cash, beginning of period | 1,363 | 3,567 | ||||||||
| Cash, end of period | $4,165 | $1,363 |
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