TORONTO (Reuters) - Kingsway Financial Services - which has a reinsurance unit in Bermuda -warned yesterday that it expects to report a "material" fourth-quarter loss and that it would try to shore up its finances by selling off non-core assets and restructuring.

The insurer of high-risk drivers, which suffered a string of losses last year on poor underwriting income and the impact of the global financial crisis on its investment portfolio, warned that it expects a loss for the quarter of about $324 million to $344 million or $5.88 to $6.24 per share.

Analysts on average had expected a loss of one cent per share before items, according to Reuters Estimates.

It said the reasons for the loss include underwriting losses at its subsidiary Lincoln General Insurance Co., impairments to goodwill, and losses on investments.

"Kingsway will de-risk its business portfolio and focus investment by exiting non-core and unprofitable lines of business at its Lincoln and Southern United subsidiaries, subject to the necessary regulatory approvals," it said in a statement.

"The company has also commenced the execution of a transformation programme that will concentrate the organisation in its core and profitable lines of business and is targeted to improve the group's financial stability."