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KFS plans to sell off majority Jevco stake     © Thompson’s World Insurance News 2009. No reproduction without written consent.     Kingsway Financial Services said it is looking to sell its majority interest in Jevco Insurance, into which it had folded its former flagship company Kingsway General Insurance just last month.     If approved by regulators, the move would effectively mark the end of Kingsway’s operations in Canada, which started back in 1986.     MSA Research and National Insurance Conference of Canada president and ceo Joel Baker said Kingsway (Financial’s) ownership of Jevco has become a drag on Jevco’s rating.     “But now that Jevco is saddled with the business of the former Kingsway General, its rating (if it continues to be rated) will be under pressure anyway     Meanwhile, U.S.-based analyst A.M. Best Co. has downgraded Kingsway’s issuer credit ratings and senior debt ratings to from ‘b-’ to ‘ccc’ citing the parent company’s continued deteriorating financial condition through the first nine months of 2009.     It said also “The Commonwealth of Pennsylvania Department of Insurance has stated that they will seek to unwind these transactions while Kingsway has filed an Action for Declaratory Judgment in Pennsylvania.      Lincoln is currently rated D (Poor) by A.M. Best and is in extreme financial distress.     The unwinding of its disposition could ultimately lead to Kingsway being in breach of its public debt covenants should Lincoln go into liquidation while still part of Kingsway.     “Kingsway’s public debt is material and a breach in covenants could lead to the liquidation of the company if principal and interest payments are called before maturity,” A.M. Best said.     Much more in our November 30 edition including a detailed account of the complaint filed by the Pennsylvania Insurance Department in its application for the Lincoln transaction to be unwound. If you are not a regular reader, click on Subscribe on the left hand side of the page to get it every week.   Thompson’s World Insurance News P.O. Box 1027,  Waterloo, Ontario,  Canada  N2J 4S1 Tel: 519-579-2500 Fax: 519-745-7321 mpub@sympatico.ca THOMPSON’S WORLD INSURANCE NEWS , Canada’s only independent weekly for p&c insurance professionals, has been the industry’s most trusted news source since 1988.