December 1, 2003 by Canadian Underwriter
Kingsway Financial Services (TSX: KFS) has sold its approximate 25% equity stake in USA Insurance Group to BISYS Group Inc. (NYSE: BSG) for a net proceed (consisting of both cash and stock in BSG) of about US$19.6 million. USA Insurance Group is a Florida-based managing general agent (MGA) specializing in commercial automobile lines.
Kingsway says the net proceed made from the disposal will amount to a realized gain for the company of about US$14.3 million. The taxed gain from this of around US$9.4 million will be included in Kingsway’s financial results for the fourth quarter of this year, the statement notes.