CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK, N.J. - OCTOBER 22, 2004 12:00 AM (EDT)
A.M. Best Co. has affirmed the financial strength ratings of the U.S. and Canadian subsidiaries of Kingsway Financial Services Inc.'s (KFSI) [TSE, NYSE: KFS]. (See listing below.) A.M. Best has also affirmed the financial strength rating of A- (Excellent) of KFSI's captive reinsurer, Kingsway Reinsurance (Bermuda) Ltd. (KRL) (Bermuda). Concurrently, A.M. Best has affirmed the debt rating of "bbb-" of KFSI's CAD78 million 8.25% senior debentures, due 2007. The outlook on all ratings remains negative.
The affirmation of the ratings is due to KFSI's continued financial support and the subsidiaries' improved capital positions. The overall premium growth rate has shown a marked reduction. Additionally, KFSI has entered into two new quota share treaties providing its Canadian subsidiaries and Lincoln General Insurance Company (Pennsylvania) with much needed surplus relief and protection. However, A.M. Best remains concerned about the continued strong growth in some of the individual companies within the Kingsway group and the potential for inadequate loss reserves.
A.M. Best will continue to monitor the progress of each of the KFSI insurance companies as they continue to improve upon capital adequacy and operating performance through controlled growth, disciplined and conservative reserving and underwriting, efficient expense management and prudent investing practices.
The financial strength ratings of A- (Excellent) have been affirmed with a negative outlook for the following subsidiaries of Kingsway Financial Services Inc.:
- Lincoln General Insurance Company
- Universal Casualty Company
- JEVCO Insurance Company
- Kingsway Reinsurance (Bermuda) Ltd.
The financial strength ratings of B++ (Very Good) have been affirmed with a negative outlook for the following U.S. and Canadian property/casualty subsidiaries of Kingsway Financial Services Inc.:
- American Service Insurance Company, Inc.
- Kingsway General Insurance Company
- York Fire & Casualty Insurance Company
The financial strength ratings of B+ (Very Good) have been affirmed with a negative outlook for the following U.S. property/casualty subsidiaries of Kingsway Financial Services Inc.:
- American Country Insurance Company
- Southern United Fire Insurance Company
The financial strength rating of B (Fair) has been affirmed with a negative outlook for Kingsway Financial Services Inc.'s, U.S. property/casualty subsidiary, U.S. Security Insurance Company Inc.
The following debt rating has been affirmed with a negative outlook:
Kingsway Financial Services Inc. -
- "bbb-" on CAD78 million 8.25% senior debentures, due 2007
For current Best's Ratings and independent data on the captive and alternative insurance market, please visit Best's Captive Center.
For current Best's Ratings, independent data and analysis on more than 470 reinsurance companies, please visit Best's Reinsurance Center.
For a list of A.M. Best's Debt Ratings, please visit Best's Debt Rating Center.
A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source.