A cease and desist order is immanent and will be issued by Pennsylvania Department of Insurance no later than March 6, 2009 for Lincoln General.
According to sources close to the Pennsylvania Department of Insurance, a deal needs to be made between Kingsway’s management regarding either rehabilitation or conservation/liquidation before any announcement can be made. The amount of capital required from Kingsway to place Lincoln into rehabilitation is not known.
Lincoln lost $80 million U.S. in 2008 Q4. Lincoln’s parent, Kingsway General, may report losses as high $350 million U.S and may also be on the auction block.