Kingsway Financial Services Inc. says it is suing PricewaterhouseCoopers LLP, Miller, Herbers, Lehman & Associates Inc. and the former directors of American Country Holdings Inc.
Kingsway says the action relates to the understatement of the reserves of American Country’s insurance subsidiary for the years 1998 through 2001 and associated costs and damages. “These reserve deficiencies occurred prior to Kingsway’s acquisition of American Country in April, 2002,” the company says.
The reserve deficiencies have all been recorded in Kingsway’s 2002 audited financial statements. The company says it has not experienced any material adverse development from American Country’s reserves in 2003.
Kingsway’s main business is the insuring of automobile risks for drivers who do not meet the criteria for coverage by standard automobile insurers and trucking insurance. It operates through nine wholly owned insurance subsidiaries in Canada and the U.S. Canadian subsidiaries.
Kingsway suing over alleged understatement of unit’s reserves
PricewaterhouseCoopers, Herbers, Lehman & Associates and American Country Holdings named
- By: IE Staff
- July 29, 2003 July 29, 2003
- 13:10
IE Staff