Kingsway’s acquisition HI Holdings finalized

Kingsway Financial Services Inc. (TSE:KFS) recently closed its acquisition of HI Holdings, Inc. (HI) for approximately US$25 million.
The transaction includes HI’s wholly owned Zephyr Insurance Company Inc. (Zephyr). HI and Zephyr were formed in 2000 by its current shareholders that include Everest Reinsurance Company, Guy Carpenter & Company, Inc., Hannover Ruckversicherung AG, and Island Holdings, Inc.
Philo Smith & Co. acted as financial advisor to HI.
Zephyr is a provider of residential hurricane insurance coverage in the State of Hawaii. Kingsway currently operates in the State of Hawaii through Lincoln General Insurance Company, and American Service Insurance Company is also licensed to transact business in the State.
For the first nine months of 2005, Zephyr generated Gross Premiums Written of US$40 million and is projected to write approximately US$50 million in Gross Premiums Written for 2005.