A.M. Best has affirmed the financial strength ratings of eight subsidiaries of Kingsway Financial Services Inc. as well as downgraded the financial strength ratings of four other subsidiaries, the insurance company said Thursday.
Kingsway also announced that its board and management will focus their efforts to cut costs and exit non-core lines of business.
The that end, the Kingsway board has appointed of Colin Simpson as senior vp and chief operating officer. Simpson is currently senior vp and chief strategy officer. In his new role, Simpson will lead a company-wide effort to simplify the organization, eliminate operational inefficiencies, and identify and implement cost cuts, Kingsway said.
A.M. Best has affirmed the financial strength ratings of eight insurance and reinsurance subsidiaries, including Universal Casualty Company, American Service Insurance Company, U.S. Security Insurance Company, Mendota Insurance Company, Mendakota Insurance Company, Southern United Fire Insurance Company, Jevco Insurance Company and Kingsway Reinsurance (Bermuda) Ltd.
The rating agency has downgraded the financial strength ratings of Lincoln General Insurance Company to “B-” (Fair), Kingsway General Insurance Company to “B” (Fair), American Country Insurance Company to “B-” (Fair), and Kingsway Reinsurance Corporation to “C++” (Marginal).
A.M. Best has also downgraded the issuer credit rating of Kingsway Financial Services Inc. and Kingsway America Inc. to “b”.
“We are disappointed with this A.M. Best decision,” said Shaun Jackson, president & CEO of Kingsway. “However, we anticipate that there will be little impact to the majority of our operating companies, particularly for those companies in the non-standard automobile business. The Board and Management are working to reduce costs over and above any expected impact due to the A.M. Best downgrade. In addition, the company has been and will continue to exit non-core lines and focus its resources on its profitable lines of business.”
IE
Kingsway names Simpson chief operating officer
A.M. best downgrades ratings on four Kingsway subsidiaries
- By: IE Staff
- January 22, 2009 January 22, 2009
- 15:20