Kingsway intends to buy back its own shares

Kingsway Financial Services Inc. (“Kingsway”) has notified The Toronto Stock Exchange of its intention to make a Normal Course Issuer Bid.
Kingsway may, during the 12-month period between Nov. 9, 2006 and Nov. 8, 2007, purchase up to 2.8 million of its own common shares. This bid represents less than 5% of the 56.08 million common shares issued and outstanding as of Nov. 3, 2006.
“The price that Kingsway will pay for any such shares will be the market price at the time of acquisition,” the company noted in a press release. “The actual number of common shares that may be purchased pursuant to the bid and the timing of any such purchases will be determined by management of Kingsway.
“All common shares purchased pursuant to the bid will be cancelled.”
Kingsway purchased 562,800 common shares, at Cdn$22.13/share, during the twelve months preceding the date of notice of its most recent normal course issuer bid. All of these shares were purchased for cancellation.
“Kingsway believes that its common shares have been trading in a price range that does not adequately reflect the value of such shares in relation to the business of Kingsway and its future business prospects,” the company said in a press release. “As a result, depending upon future price movements and other factors, Kingsway believes that its outstanding common shares may represent an attractive investment to Kingsway.
“Furthermore, the purchases are expected to benefit all persons who continue to hold common shares by increasing their equity interest in Kingsway.
Kingsway Financial Services Inc. is one of the largest truck insurers and non-standard automobile insurers in North America.”