Kingsway gains FSCO approval for auto changes

Kingsway Financial Services Inc. (TSE: KFS) has gained approval from the Financial Services Commission of Ontario (FSCO) to eliminate certain classes of personal auto business and implement an across-the-board 8.5% increase in rates. The rate adjustments take effect from the beginning of September this year on new business, while renewal business will be subject to a price hike as from October. Kingsway will eliminate certain classes of auto business as from July, a company statement says.
Kingsway currently wrote about $12.6 million in personal auto premiums in Ontario for the first quarter of this year. Company CEO Bill Star praised FSCO for the timely manner in which Kingsway’s rate filing application had been dealt with. "I am pleased to report that we have obtained approval for an overall rate increase as well as the elimination of certain classes of business. The implementation of these changes should enable us to return this product to underwriting profitability and to continue to provide availability of this much needed product in the Ontario market."