Kingsway inks U.S. deals, announces share offering

Specialty risk insurer Kingsway Financial Services Inc. (TSE: KFS) has entered into an “alliance” with Texas-based auto insurer Reliant American Group Inc. to market the company’s underwriting products. “We see a lot of potential for the distribution of Reliant American’s commercial auto, garage liability and general liability products through our licensing and underwriting capabilities, with Reliant American assuming some of the underwriting risk. We continue to look at forming strategic alliances with strong partners like Reliant American, to strengthen our U.S. presence and add new lines to our product offerings,” says Kingsway president Bill Star.

Furthermore, the Canadian insurer says it has received licensing approval to write non-standard auto insurance in California through its U.S. – registered operating subsidiary, Lincoln General Insurance Co. “Obtaining the California license enables us to immediately commence writing business in California using our previously filed rates.”

Kingsway has also filed a preliminary prospectus with the Canadian and U.S. securities authorities with the intent of making a public offering of 10 million common shares of the company’s stock. A further 1.5 million common shares have been allocated through the proposed offering plan to accommodate “over allotments” of shares. The insurer has applied for a listing on the New York Stock Exchange. Banc of America Securities LLC and HSBC Securities have been appointed the underwriting managers for the proposed offering.