Kingsway Financial Services Inc. today announced the completion of the previously announced acquisition of Mendota Insurance Company, a wholly owned subsidiary of The Travelers Companies, Inc.

The transaction includes Mendota’s wholly owned subsidiaries, Mendakota Insurance Company and Mendota Insurance Agency, Inc. Terms of the transaction were not disclosed. The purchase price has been funded through a combination of internal sources and Kingsway’s existing credit facilities.

Mendota is licensed in 43 states and currently writes non-standard automobile insurance business in 20 states through a network of about 6,000 independent agency locations. Mendota is headquartered in St. Paul, Minnesota and in calendar year 2006 wrote approximately US$175 million of non-standard automobile premiums.

“We are very excited to announce the completion of the acquisition of Mendota”, said Bill Star, president and CEO of Kingsway. “This acquisition is consistent with our growth strategy of specialty insurance products, particularly non-standard automobile in the United States. Mendota is a well run and profitable organization and we look forward to this continued success as part of the Kingsway Group of Companies.”

Kingsway is one of the largest truck insurers and non-standard automobile insurers in North America.