What’s New: In Brief (July 15, 2008)

Kingsway Financial Services Inc. says it intends to repay outstanding debts under its US$175-million, three-year revolving facility before the end of July.
The company arranged the credit facility with a syndicate of banks in June 2006. As of June 30, 2008 the amount outstanding under this credit agreement was US$89.8 million.
Kingsway also announced its intention to repay Cdn$19.9 million of the Cdn$69.8 million outstanding under the 365-day credit agreement entered into on Dec. 21, 2007, the release adds.
Both repayments will be made using the company’s existing surplus capital resources held in its reinsurance subsidiaries.

Large regional insurance brokers won’t be immune from the cyclical downturn hitting many sectors of the insurance industry, reports Standard & Poor’s (S&P’s).
S&P’s recently hosted a panel discussion, “Market Challenges Faced by Regional Brokers,” at its insurance conference in New York.
Although geographic and product-line diversification will offer some protection from the insurance soft market, and even though some brokers report success in negotiating higher commission rates, the panel agreed the current market slump will likely last into 2010.
“In August 2007, it was like somebody flipped a switch,” said panel member Martin P. Hughes, chairman and CEO of Hub International Ltd.
Although the U.S. market is particularly volatile, with some lines seeing price drops of 15%, panellists commented the Canadian market is operating under “better conditions.”