Kingsway to Sell Jevo Insurance
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Kingsway Financial Services Inc. announced January 25 a proposed sale of its Jevco Insurance subsidiary to Westaim Corp. in a deal worth about $263 million. Jevco specializes in providing non-standard insurance for autos, recreational vehicles, commercial autos, property and liability. The company also provides surety insurance for the Canadian construction industry. Westaim’s primary asset is its 75 per cent interest in Nucryst Pharmaceuticals Corp, but the company has a mandate to invest in businesses with the potential for capital appreciation. The sale price is based on 94.5 per cent of Jevco’s book value as of Dec. 31, subject to adjustments. In addition, prior to closing the sale, Kingsway will receive a $40 million dividend from Jevco. The deal requires approval from the Minister of Finance and Westaim shareholders. Based in Mississauga, Ont., Kingsway operates through a number of subsidiaries in the United States and Canada, including Jevco. Kingsway said it has conditional agreements to repurchase about US$47 million of its outstanding debt if the Jevco deal is completed successfully.
