Kingsway Financial Completes Purchase Of Florida Insurance Units

Toronto-based Kingsway Financial Services Inc. says it has received all required approvals and completed the acquisition of Hamilton Investments, Inc. Hamilton is a privately owned holding company that owns all of the shares of U.S. Security Insurance Company (USSI), Appco Finance Corp. (Appco), Insurance Management Services, Inc. (IMS), Corporate Claims Services, Inc. (CCS) and Auto Body Tech, Inc. (ABT).

USSI is a non-standard automobile insurance company, incorporated and licensed to carry on business in Florida. Appco is one of the largest independent premium finance companies in Florida, providing premium financing to a number of insurance companies. IMS, a managing general agent, CCS, a claim service provider, and ABT, an auto body repair facility, provide services for a number of insurance companies.

"Through this acquisition, we have gained entry to the large and growing Florida market, where we will introduce other products through the company's agents over time," says Bill Star, president and chief executive officer of Kingsway. "This acquisition further strengthens our distribution capabilities in the United States, where we are now licensed in 40 states and expect to generate approximately two-thirds of our gross premiums in 1999."

During the first nine months of 1998, USSI wrote $24 million (CND$36 million) in gross premiums and IMS wrote $7 million (CND$11 million) of premiums under a companion facility with another insurance company. In 1997, USSI wrote $34 million (CND$51 million) in gross premiums and IMS generated $11 million (CND$17 million) of written premiums under the companion facility.

Kingsway will operate Hamilton as an independent subsidiary under Kingsway America, Inc. Kingsway intends to keep Hamilton's management team and retain all existing employees at Hamilton's head office in Miami.