Kingsway Financial Services to acquire Mendota Insurance Company

Kingsway Financial Services Inc. announced it has reached an agreement to acquire Mendota Insurance Company, a wholly owned subsidiary of the St. Paul Travelers Companies Inc.
The transaction includes Mendota’s wholly owned subsidiaries, Mendakota Insurance Company and Mendota Insurance Agency Inc.
The acquisition will spike Kingsway’s participation in the non-standard automobile market south of the border, Bill Star, president and chief executive of Kingsway, said in a statement.
“This transaction is consistent with our strategy to become a dominant player in the non-standard automobile market in the United States as evidenced by this acquisition and our existing subsidiaries devoted to this line of business,” Star said.
Currently, Mendota is the dedicated non-standard automobile insurance operation of St. Paul Travelers.
With a license in 43 states and currently writing business in 20 states through a network of about 6,000 independent agency location, Mendota wrote approximately $175 million of non-stand automobile premiums in 2006.
Once regulatory approval is granted, the transaction will be completed, says a Kingsway release.
It is anticipated that the purchase price will be funded through internal sources, a portion of which may include Kingsway’s existing undrawn credit facilities.