October 19, 2009 by Canadian Underwriter
Kingsway America Inc. (KAI), an indirect, wholly-owned subsidiary of Kingsway Financial Services Inc., has disposed of its entire interest in Walshire General Assurance Company.
Walshire is the sole shareholder of Lincoln General Insurance Company, now in run-off.
“All of the stock of Walshire has been donated to charity, and with this disposition Lincoln General ceases being a member of Kingsway’s consolidated group of companies,” Kingsway announced in a press release.
In addition, Kingsway has also sold substantially all of the assets of Avalon Risk Management Inc.
“Kingsway’s recent financial performance has been adversely impacted by historic business strategies and practices that proved to be unprofitable,” the company announced. “These dispositions are an important step in Kingsway’s previously announced transformation plan to address and bring an end to this legacy.”
GMAC Inc. intends to sell its U.S. consumer property and casualty insurance business to American Capital Acquisition Corporation.
Terms of the deal, subject to regulatory approval, were not disclosed.
“This agreement follows a comprehensive strategic review of GMAC’s broader insurance business, which includes GMAC’s U.S. automobile, commercial vehicle, motorcycle and recreational vehicle insurance offerings,” GMAC said in a document filed with the U.S. Securities Exchange Commission (SEC).
“The dealer-related insurance business, which includes extended service contracts and insurance for auto dealer inventories, is not affected by this transaction and remains a strategic component of GMAC’s insurance platform.”
GMAC offers financing to General Motors (GM) and Chrysler dealerships and their customers.
American Capital is an equity partner in management and employee buyouts, provides financing for buyouts led by private equity firms and provides capital directly to private and public companies.