Kingsway Financial Services has cancelled the special meeting of shareholders called for Feb. 10, as a result of the settlement with dissident shareholder Joseph Stilwell and his associates, the Stilwell Group.

The settlement announced Wednesday involves the appointment to the Kingsway board of directors of Larry Swets, Jr. and Spencer Schneider, two nominees of the Stilwell Group, effective immediately.

Shaun Jackson will step down from the board to make room for the Stilwell Group nominees but will retain all of his duties and responsibilities as president and CEO of Kingsway. Michael Walsh will remain a director and the non-executive chairman of Kingsway.

The settlement agreement also provides that for a period of three years, the Stilwell Group will not seek to have its nominees elected to a majority of the board seats and will not seek to obtain control of Kingsway.

Joseph Stilwell, the principal of the Stilwell Group, commented, “We are pleased to have reached a settlement and will fully support Shaun Jackson and the rest of the management team in their efforts to restore Kingsway to profitability and to increase shareholder value over the long term.”

Jackson stated, “Kingsway has taken and will continue to take decisive action to return Kingsway to profitability.”

“I look forward to the support of the representatives of the Stilwell Group in achieving our common goals for the benefit of all shareholders,” Jackson added.

IE