Sept 23 (Reuters) - Kingsway Financial Services Inc , which sells high-risk auto and truck insurance, said it will merge two of its Canadian insurance units, effective Oct. 1, to reduce expenses and return to profitability.
JEVCO Insurance Co (JEVCO) will takeover assets and liabilities of Kingsway General Insurance Co (KGIC) and Serge Lavoie will continue as chief executive of the combined company.
BMO Capital Markets raised its price target on the Mississauga, Ontario-based company's stock and said, 'The next 12 months are critical for (Kingsway) to restructure and right-size its business to its diminished capital base.'
Kingsway's results have been hampered for several quarters by underwriting losses at U.S.-based subsidiary Lincoln General Insurance Co, and it has previously announced plans to put all but the strongest of Lincoln's programs into run-off to the Pennsylvania Insurance Department.
Shares of the company were down 6 Canadian cents at C$4.89 in morning trade Wednesday on the Toronto Stock Exchange.
(Reporting by Sweta Singh in Bangalore; Editing by Vinu Pilakkott) Keywords: KINGSWAYFINANCIAL/ (sweta.singh@thomsonreuters.com ; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: sweta.singh.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
JEVCO Insurance Co (JEVCO) will takeover assets and liabilities of Kingsway General Insurance Co (KGIC) and Serge Lavoie will continue as chief executive of the combined company.
BMO Capital Markets raised its price target on the Mississauga, Ontario-based company's stock and said, 'The next 12 months are critical for (Kingsway) to restructure and right-size its business to its diminished capital base.'
Kingsway's results have been hampered for several quarters by underwriting losses at U.S.-based subsidiary Lincoln General Insurance Co, and it has previously announced plans to put all but the strongest of Lincoln's programs into run-off to the Pennsylvania Insurance Department.
Shares of the company were down 6 Canadian cents at C$4.89 in morning trade Wednesday on the Toronto Stock Exchange.
(Reporting by Sweta Singh in Bangalore; Editing by Vinu Pilakkott) Keywords: KINGSWAYFINANCIAL/ (sweta.singh@thomsonreuters.com ; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: sweta.singh.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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