August 7, 2009 / 12:10 PM / 9 years ago

UPDATE 1-Kingsway Financial posts Q2 loss

* Q2 shr loss $0.77 vs EPS $0.11 a year ago

* Says not to pay quarterly dividend for Q2

* Total premium earned falls 32 pct

Aug 7 (Reuters) - Kingsway Financial Services Inc (KFS.TO), a Canadian property and casualty insurer, posted a second-quarter loss, its fourth sequential quarterly loss, as net premium earned fell 32 percent and it took several one-time charges.

Kingsway also said it would not pay a quarterly dividend for the second quarter.

Kingsway, which sells high-risk auto and truck insurance, reported a net loss of $38.4 million, or 70 cents a share, for the second quarter, compared with a net income of $6.3 million, or 11 cents a share, a year ago.

The results include a $10 million restructuring charge.

Net premium earned fell 32 percent to $269.6 million.

“The second quarter’s poor financial results reflect the legacy of past business strategies and practices that we are rapidly eliminating or changing through our ongoing transformation work,” Chief Executive Colin Simpson said in a statement.

The company has been struggling to right itself for months, divesting non-core businesses and shuffling management as it fights its way through the global financial crisis.

As a result of its transformation plan, Kingsway stopped writing unprofitable lines of business within its commercial lines, hurting the gross premium written for its Canadian and U.S. operations.

Kingsway said the run-off business premium volume fell by $93.8 million in the quarter from a year ago.

Analysts on average had expected the company to post a loss of 14 cents a share, on revenue of $257.4 million for the quarter.

The company said it expects to continue to gain momentum during the rest of 2009 and throughout 2010.

Shares of the company closed at C$3.81 Thursday on the Toronto Stock Exchange.

For related alerts, double-click [ID:nWNBB1683] (Reporting by Isheeta Sanghi in Bangalore; Editing by Gopakumar Warrier)

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