Kingsway Financial Services sells non-standard auto insurance biz

Kingsway Financial Services Inc. has entered into a definitive agreement with Premier Holdings, LLC, to sell its non-standard automobile insurance companies.

Under the agreement, the firm will sell Mendota Insurance Company, Mendakota Insurance Company and Mendakota Casualty Company for an aggregate purchase price equal to Mendota’s statutory surplus at June 30, 2018.

In a release, the firm says it will redeploy sale proceeds to acquire limited liability investments and other investments owned by Mendota at the time of closing.

The firm also says it will record an estimated loss on the transaction during the second quarter of 2018, primarily driven by the write-down of a $7.6-million indefinite lived intangible asset related to Mendota.

The transaction is expected to close during the third quarter of 2018 subject to regulatory approvals.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.