Kingsway Sells General Insurance Unit to Stone Point Capital

TL;DR

Kingsway selling its insurance company to Stone Point Capital - focus on brokerage biz going forward.

AI Summary

Kingsway Financial Services Inc. announced on March 22, 2024, that it has entered into a definitive agreement to sell its subsidiary, Kingsway General Insurance Company, to an entity controlled by certain investment funds managed by Stone Point Capital LLC. The transaction is expected to close in the second quarter of 2024, subject to regulatory approvals. This sale is part of Kingsway's strategic initiative to focus on its remaining insurance brokerage operations.

Why It Matters

This divestiture signals a strategic shift for Kingsway Financial Services, allowing it to concentrate on its core insurance brokerage business and potentially unlock shareholder value.

Risk Assessment

Risk Level: medium — The sale is subject to regulatory approvals and closing conditions, introducing uncertainty until the transaction is finalized.

Key Players & Entities

• Kingsway Financial Services Inc. (company) — Seller
• Kingsway General Insurance Company (company) — Subsidiary being sold
• Stone Point Capital LLC (company) — Buyer
• March 22, 2024 (date) — Announcement date
• second quarter of 2024 (date) — Expected closing period

FAQ

Key Financial Figures

• $0.01 — ch registered Common Stock , par value $0.01 per share KFS New York Stock Exchang
• $10 million — on March 21, 2025. Under the original $10 million authorization, there currently remains
• $2.7 million — n, there currently remains a balance of $2.7 million available to repurchase shares of the C

Filing Documents

• kfs20240322_8k.htm (8-K) — 25KB
• 0001437749-24-009040.txt ( ) — 153KB
• kfs-20240322.xsd (EX-101.SCH) — 3KB
• kfs-20240322_def.xml (EX-101.DEF) — 11KB
• kfs-20240322_lab.xml (EX-101.LAB) — 15KB
• kfs-20240322_pre.xml (EX-101.PRE) — 11KB
• kfs20240322_8k_htm.xml (XML) — 3KB

01 Other Events

Item 8.01 Other Events. On March 22, 2024, Kingsway Financial Services Inc. (the "Company") entered into a one year extension of its existing share repurchase program. As amended, the share repurchase program will now expire on March 21, 2025. Under the original $10 million authorization, there currently remains a balance of $2.7 million available to repurchase shares of the Company's common stock.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits Exhibit Description 104 Cover Page Interactive Data File (embedded within the Inline XBRL Document)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Kingsway Financial Services Inc. Date: March 22, 2024 By: /s/ Kent A. Hansen Name: Kent A. Hansen Title: Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR