Kingsway Financial Services has completed the sale of its non-standard automobile insurance companies Mendota Insurance Company, Mendakota Insurance Company and Mendakota Casualty Company (Mendota) to Premier Holdings.
Image: Kingsway sells auto insurance businesses. Photo: Courtesy of alexisdc/FreeDigitalPhotos.net.
The final aggregate purchase price of $28.6m has been redeployed primarily to acquire limited liability investments, equity investments and other investments, which were owned by Mendota at the time of the closing, having a carrying value of $22.9m and to fund $5m into an escrow account to be used to satisfy potential indemnity obligations under the definitive stock purchase agreement.
Kingsway Financial Services president and CEO John Fitzgerald said: “We are pleased to announce the closing of the sale of our non-standard auto insurance business. The sale of Mendota represents the disposition of the last legacy operating business from the original Kingsway group of companies.
“The sale is bittersweet, as we have begun to see the emerging results of the turnaround efforts we have expended over the last 24 months. That said, we plan to redeploy the assets we have received as compensation for the sale towards higher returning, less volatile businesses like extended warranty. We wish Steve Harrison and the entire Mendota team best wishes for a bright future under new ownership.”
Kingsway is a holding company that owns or controls subsidiaries primarily in the extended warranty, asset management and real estate industries. The common shares of Kingsway are listed on the Toronto Stock Exchange and the New York Stock Exchange under the trading symbol “KFS.”
Source: Company Press Release