Toronto-based Kingsway Financial Services Inc. has agreed to sell Zephyr Insurance Co., Inc. to Zephyr Acquisition Co., an acquisition vehicle of Ocean Harbor Holding Inc. and MP Holdings LLC, a Hawaiian based investor group.
The transaction is expected to be completed during the fourth quarter of 2009 subject to the receipt of regulatory approvals.
Zephyr is a specialty property insurance company that insures Hawaii homeowners against catastrophic loss due to hurricanes.
For the first six months of 2009, Zephyr had gross premiums written of approximately $36 million, or 7 percent of the premiums of the Kingsway group of companies, and produced an underwriting profit.
Kingsway anticipates receiving initial gross proceeds from the transaction of $31.5 million U.S., plus a contingent, deferred earn-out amount.
Kingsway focuses on non-standard automobile insurance in North America. The company operates through wholly-owned insurance subsidiaries in Canada and the U.S. It has been consolidating, laying off workers, and selling off some non-core assets to recover from larger-than-expected losses and to restore the company’s financial condition.
Topics Catastrophe Mergers & Acquisitions Natural Disasters Carriers Hurricane Hawaii
Was this article valuable?
Here are more articles you may enjoy.
Coverage Needed: Hundreds of Thousands in SE Now in Flood Zones With New Maps 
BlackSuit Cybercrime Gang Blamed in CDK Hack That Roiled Car Dealers 
US Judge Skeptical of Biden Overtime Pay Rule 
‘Great Resignation’ Enters Third Year as Workers Embrace AI, Upskilling, PwC Says 
