Insurance: Kingsway completes sale of Zephyr
Kingsway Financial Services Inc. ("Kingsway" and "Company") has completed the previously announced sale of Zephyr Insurance Company, Inc.
Under the deal, Zephyr is sold to Zephyr Acquisition Company ("ZAC"), an acquisition vehicle owned by Ocean Harbor Holding Inc. and MP Holdings LLC, a Hawaiian-based investor group, for initial gross proceeds of USD31.5 million U.S., plus a contingent, deferred earn-out amount.
Zephyr is a speciality property insurance company founded specifically to protect Hawaii home-owners and residents from catastrophic loss due to hurricanes. For the first six months of 2009, Zephyr had gross premiums written of approximately USD36 million, or 7% of the premiums of the Kingsway group of companies, and produced an underwriting profit.
Kingsway focuses on non-standard automobile insurance in North America. Kingsway's primary businesses are the insuring of automobile risks for drivers who do not meet the criteria for coverage by standard automobile insurers, and commercial automobile insurance.
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