Kingsway Financial Services (KFS) Announces Settlement with Pennsylvania Insurance Dept
Tweet
Share
E-mail
Kingsway Financial Services Inc. (NYSE: KFS) announced a settlement and release ending all legal disputes between the Company and the Pennsylvania Insurance Department (the "Department").
As previously disclosed, the Department sued the Company and twenty different charities on November 20, 2009, after Kingsway disposed of its interest in Walshire Assurance Company ("Walshire") and Lincoln General Insurance Company ("Lincoln General") in October 2009 by donating its Walshire shares to the charities. On April 1, 2010, the Department's claims that the disposition was improper were dismissed, but the Department appealed to the Pennsylvania Supreme Court. The settlement between the parties was reached after nearly a year of negotiations and includes a mutual release of claims arising out of Kingsway's prior 100% ownership and renewed minority ownership, as described below, of Walshire and Lincoln General, as well as claims relating to the original disposition in October 2009.
Kingsway also announced that LGIC Holdings, LLC ("LGIC Holdings") has completed its previously announced acquisition of Walshire. Regulatory approval for the change in control of Walshire was obtained October 6, 2011. LGIC Holdings is a joint endeavor between Kingsway, the 49% owner member, and Tawa plc, the 51% owner member.
As previously disclosed, the Department sued the Company and twenty different charities on November 20, 2009, after Kingsway disposed of its interest in Walshire Assurance Company ("Walshire") and Lincoln General Insurance Company ("Lincoln General") in October 2009 by donating its Walshire shares to the charities. On April 1, 2010, the Department's claims that the disposition was improper were dismissed, but the Department appealed to the Pennsylvania Supreme Court. The settlement between the parties was reached after nearly a year of negotiations and includes a mutual release of claims arising out of Kingsway's prior 100% ownership and renewed minority ownership, as described below, of Walshire and Lincoln General, as well as claims relating to the original disposition in October 2009.
Kingsway also announced that LGIC Holdings, LLC ("LGIC Holdings") has completed its previously announced acquisition of Walshire. Regulatory approval for the change in control of Walshire was obtained October 6, 2011. LGIC Holdings is a joint endeavor between Kingsway, the 49% owner member, and Tawa plc, the 51% owner member.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Boeing names Ryan Shedd as new SVP and controller
- Alzamend Neuro (ALZN) files for 98.4M share offering by selling stockholders
- Curvature Securities terminates ATM sales pact with Planet Green
Create E-mail Alert Related Categories
Corporate NewsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
