Kingsway to Sell York Fire & Casualty to La Capitale General

TORONTO, Aug 26, 2008 (A. M. Best via COMTEX) -- KFS | Quote | Chart | News | PowerRating -- Kingsway Financial Services Inc. is selling York Fire & Casualty Insurance Co. to La Capitale General Insurance Inc.

Kingsway (NYSE: KFS | Quote | Chart | News | PowerRating) expects to record an estimated gain before taxes of C$50 million (US$47.7 million) on the transaction, the company said in a statement.

The sale is expected to be completed before the end of the year.

La Capitale is a member company of the mutual company La Capitale Financial Group Inc., which is owned by the members of Quebec's civil service.

York writes standard personal lines automobile and property insurance in Ontario and Alberta, Canada.

Kingsway, headquartered in Mississauga, Ontario, produces nonstandard and standard automobile insurance and truck insurance and commercial and personal property insurance in North America.

Kingsway General Insurance Co. currently has a Best's Financial Strength Rating of B+ (Good).

York Fire & Casualty Insurance Co. currently has a Best's Financial Strength Rating of B (Fair).

Shares of Kingsway Financial were selling at $8.30 in afternoon trading on Aug. 26, up 2.98% from the previous close.

(By Alyn Ackermann, senior associate editor, BestWeek: Alyn.Ackermann@ambest.com)

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