Kingsway Financial Services Inc. has closed on the sale of York Fire & Casualty Insurance Co. for C$95 million to La Capitale General Insurance Inc., a member company of the mutual Group, La Capitale, owned by members of Quebec’s civil service.
Kingsway said it expects to record, in the third quarter financial results, a pre-tax gain of approximately C$44 million, before expenses, subject to completion of a post closing external audit. The gain is somewhat lower than originally anticipated due to the recapitalization requirement under the terms of the purchase agreement, resulting from the valuation of York’s investment portfolio and the underwriting results for the third quarter.
Shaun Jackson, Kingsway president and CEO, said the closing will allow his firm to focus resources and capital on its core lines of business and repay its remaining short-term bank debt of approximately U$48 million.
Source:
Kingsway Financial Services Inc.
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