Transaction is expected to benefit both the companies stakeholders
Kingsway Financial Services has undertaken to dispose of its majority interest in Jevco Insurance Company. The transaction is expected to benefit both the companies stakeholders by strengthening Jevco’s market presence and allowing it to continue its 20 year history of profitability.
The company said that one of the objectives of the transaction is for Jevco’s financial strength rating to be judged independently of the Kingsway group of companies, which has adversely impacted Jevco’s current standing.
Reportedly, subject to approval by the Office of the Superintendent of Financial Institutions, Kingsway is intending to relinquish control of Jevco and remain a non-influential investor.
Kingsway operates through its wholly-owned insurance subsidiaries in Canada and the US which it is currently consolidating to reduce overhead and strengthen its competitive position.