JJR to acquire two Kingsway commercial divisions
Kingsway Financial Services and JJR Capital Corp. announced they have entered into a letter of intent, whereby JJR Capital’s subsidiary JJR VI Acquisition Corp. will acquire Kingsway’s US specialty commercial auto insurance divisions in a deal valued at more than US$80 million. In association with the proposed deal, Kingsway’s US specialty commercial auto insurance divisions: American Country Insurance Company or ACIC and American Service Insurance Company or ASI, or an affiliate intends to complete a private placement of not less than US$40 million.
Founded in 1925, to sell insurance for taxi cabs, ACIC is one of the oldest insurers of U.S. taxi and livery business. For more than 75 years, ACIC expanded its expertise in this and other areas of specialty commercial automobile insurance. In 1983, ASI began as a non-standard personal and commercial auto insurer writing business in the Chicago, Illinois area. For over 25 years, ASI developed expertise in the area of specialty auto insurance. Both companies distribute their insurance products through a network of retail independent agents. Together, ACIC and ASI are currently licensed to write property and casualty insurance in 47 states in the United States.
