Kingsway Financial Services Inc. reported a first quarter 2012 net loss of $12.5 million, or a loss of $0.24 per diluted share. The book value has decreased from $2.22 per share at December 31, 2011 to $2.01 per share at March 31, 2012.
The insurer said a net operating loss of $3.2 million was recorded in the insurance underwriting segment for the first quarter of 2012. Net operating income in the insurance services segment amounted to $1.7 million. Net loss of $12.1 million not allocated to any segment was recorded in the first quarter. This includes loss on change in fair value of debt of $4.3 million; equity in net loss of investees of $2.3 million; and interest expense of $1.1 million related to the Company’s subordinated debt and currently being deferred. None of these three items impacted the Company’s cash flows during the first quarter.