Kingsway/Pennsylvania Dispute

[ragnarisapirate]

http://www.ins.state.pa.us/ins/cwp/view.asp?Q=550385&A=11

http://finance.yahoo.com/news/Kingsway-update-on-cnw-4235243177.html?x=0&.v=1

http://finance.yahoo.com/news/Kingsway-asks-court-to-affirm-cnw-1711086760.html?x=0&.v=1

 

Does anyone have any insight on the issue at hand? If nothing else, it seems to be an interesting regulatory dispute.

[uncommonprofits]

http://www.ins.state.pa.us/ins/cwp/view.asp?Q=550385&A=11

http://finance.yahoo.com/news/Kingsway-update-on-cnw-4235243177.html?x=0&.v=1

http://finance.yahoo.com/news/Kingsway-asks-court-to-affirm-cnw-1711086760.html?x=0&.v=1

 

Does anyone have any insight on the issue at hand? If nothing else, it seems to be an interesting regulatory dispute.

 

I just think this creates more uncertainty for their agents in Ontario and a further catalyst for these agents to switch policies over to one of the other two NS insurers. One of these of course is Echelon (EGI Financial - EFH).  EFH's leveraged ratio (of annualized net written premiums to Shareholder Equity) keeps coming down -- it is now 1.1 times (compared to a year ago).  Management believes 2.5:1 would be a fully leverged ratio.  EFH is very discipline and have patiently waited things out --- they are in very fine shape to take on more business.  Not only from the Kingsway blow up ... but also from what seems to be the start of the cycle of Standard insurers exiting NS.  Meanwhile, there have been some pretty hefty premium hikes taking place and some regulations implemented in Ontario that should help on the claims side.  Echelon's MCT margin is currently 314%.  The company is also growing a niche products division and moving in to the Florida market at a time when competitors are highly leveraged.  Still trades for <0.9x Book.

 

UCP / DD

[NormR]

Kingsway Announces Dismissal of All Claims Against Kingsway in Pennsylvania Action

[StubbleJumper]

The stock is up 30% today, or about 50 cents per share.  Does that mean that the market views Lincoln General to be worth negative 50 cents?  Pretty pathetic.

 

SJ

[alertmeipp]

actually the stock has tanked from $4 because of this lawsuit...this news is very positive for KFS as if they had to take Lincoln back, they may breach some of their debt covenants.