TORONTO, March 7, 2014 /CNW/ - (TSX: KFS) (NYSE: KFS) Kingsway Financial
Services Inc. ("Kingsway" or the "Company") announced today that it has
appointed Gordon G. Pratt, CEO of Fund Management Group ("FMG"), as
Chairman of 1347 Capital LLC ("1347 Capital"), Kingsway's wholly owned
merchant bank.
Founded in 2011, 1347 Capital identifies and targets specialty insurance
businesses and special-situation investments, which it then acquires or
finances with a goal of managing, improving, and growing in order to
create value for Kingsway shareholders.
Founders of 1347 Capital have been active in public and private markets
using financial tools appropriate for each situation. Together with
Kingsway, these efforts to date have included:
-
Formation, reverse merger and public stock offering of Atlas Financial
Holdings, Inc.
-
Founding of 1347 Property Insurance Holdings, Inc.
-
Acquisition of three specialty insurance services businesses in private
transactions
Kingsway CEO Larry G. Swets, Jr., stated, "Since the recent retirement
of Kingsway's Senior Notes, we've expanded our focus on long-term value
creation and seeking new opportunities through 1347 Capital. We are
pleased that Gordon will help direct these efforts because of his
proven track record in identifying and developing specialized
investments in the insurance industry with substantial upside. I've
worked with Gordon for many years and seen how his insight, experience,
and bias for action build value for investors, partners, and people
involved in FMG projects."
"Kingsway and 1347 Capital's approach complements FMG's view of the now
rapidly-changing insurance industry," said Mr. Pratt. "Since its
founding 10 years ago, FMG has operated with a view to 'find, buy,
improve, build.' Our projects have proved out successfully, and we look
forward to finding and building new opportunities with 1347 Capital for
Kingsway and its shareholders. "
About Fund Management Group
FMG has sponsored and served as an early investor in both
insurance-focused public company stock offerings, including FMG
Acquisition Corp., a special purpose acquisition company that merged
with United Insurance to form United Insurance Holdings Corp., and in
private placements in insurance companies filing to go public,
including Atlas Financial Holdings, Inc. and 1347 Property Insurance
Holdings. Also active in private company investments, FMG has held
controlling interests in Risk Enterprise Management Limited and Avalon
Risk Management Insurance Agency LLC while acquiring minority interests
in other insurance businesses. FMG subscribed to Kingsway's 2013 rights
offering and was a lead investor both in 1347 Property Insurance
Holdings' private placement and in Kingsway's recent preferred stock
issue.
About Gordon G. Pratt
Mr. Pratt currently serves as Chairman of the board of directors for
Atlas Financial Holdings, Inc. (NASDAQ: AFH) and for 1347 Property
Insurance Holdings, Inc. (in registration). He is past Chairman of the
board for privately-held Risk Enterprise Management Ltd. and for FMG
Acquisition Corp. (OTC: FMGQ). He previously served as Vice Chairman of
the board for United Insurance Holdings Corp. (NASDAQ: UIHC) and for
privately-held Avalon Risk Management Insurance Agency LLC.
Since March 2004, Mr. Pratt has served as Chief Executive Officer of
Fund Management Group LLC, a private investment and holding company.
From June 2004 to April 2006, he served as the Senior Vice President,
Corporate Development of the Willis Group in New York and London, prior
to which he was an equity holder and Managing Director of Hales Capital
Advisors LLC and the Managing Partner of Distribution Partners
Investment Capital L.P., a private equity fund focused on the insurance
industry. Before joining Hales, Mr. Pratt was a Senior Vice President
and a member of the management committee of Conning & Company, where he
helped to raise and invest capital for three Conning Private Equity
funds. He began his career at The Chase Manhattan Bank, N.A. in New
York. Mr. Pratt holds a bachelor's degree from Cornell University and a
Master of Management degree from Northwestern University's Kellogg
School of Management.
About the Company
Kingsway is a holding company functioning as a merchant bank with a
focus on long-term value-creation. The Company owns or controls stakes
in several insurance industry assets and utilizes its subsidiaries,
1347 Advisors LLC and 1347 Capital LLC, to pursue opportunities acting
as an advisor, an investor and a financier. The common shares of
Kingsway are listed on the Toronto Stock Exchange and the New York
Stock Exchange under the trading symbol "KFS."
Forward-Looking Statements
This press release includes "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934 that are not historical facts, and
involve risks and uncertainties that could cause actual results to
differ materially from those expected and projected. Words such as
"expects", "believes", "anticipates", "intends", "estimates", "seeks"
and variations and similar words and expressions are intended to
identify such forward-looking statements. Such forward-looking
statements relate to future events or future performance, but reflect
Kingsway management's current beliefs, based on information currently
available. A number of factors could cause actual events, performance
or results to differ materially from the events, performance and
results discussed in the forward-looking statements, including, without
limitation, our potential inability to complete the proposed private
placement. For information identifying important factors that could
cause actual results to differ materially from those anticipated in the
forward looking statements, please refer to the section entitled "Risk
Factors" in the Company's 2012 Annual Report on Form 10-K and its
Quarterly Report on Form 10-Q for the quarter ended September 30,
2013. Except as expressly required by applicable securities law, the
Company disclaims any intention or obligation to update or revise any
forward looking statements whether as a result of new information,
future events or otherwise.
SOURCE Kingsway Financial Services Inc.