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Kingsway Financial Services Inc. Message Board

  • bailshopper bailshopper Jan 4, 2010 11:41 PM Flag

    KPMG Dumping Kingsway?

    Hey Everyone:

    A little birdie told me that Kingsway's outside auditor is going to call it a day. The controversy surrounding the divestiture of Walshire stock to charity along with the protracted battle with the Pennsylvania Department of Insurance is giving KPMG a giant headache. Rumor has it that they don't want to certify Kingsway's annual report and would prefer to distance themselves from Kingway's management. The Walshire "thing", and the scheme that was devised by Kingway's management is becoming a public relations nightmare that KPMG does not want.

    The Pennsylvania DOI would like to get rid of the Lincoln General problem once and for all by the end of this month. Further to this, we have heard that the disposition of the claims inventory has been called to question, due in large part to a lack of adequate funding of claims payments by Kingsway. The Pennsylvania DOI doesn't want a melt down like Reliance Holdings and needs to do something quickly.

    Watch for California, Illinois and Arizona to come down hard on Kingsway and Lincoln General if Pennsylvania doesn't get things done. Most of the adverse development is the result of California and Arizona business - particularly business booked by a San Diego program administrator.

    Any information would be appreciated.

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    • I'd be grateful if someone can let me know: is Kingsway Financial (insurance) part of the same group which sends out the many email scams I've read about on the consumer sites?

      Thanks
      C

    • Hilarious. Rats deserting a sinking ship. Why so nervous anyway? ....rubber stamping just like AM Best. By the way, what is AIG's AM best rating ?

      • 2 Replies to rufusfirefly72
      • Nervous? Who'd be nervous about certifying the annual statement of a company that could soon be indicted in New York Federal Court for racketeering, mail fraud, and a host of other niceties - so the rumor mongers tell us. Only the local U.S. knows for sure! KMPG is used to this kind of nonsense - I'd hate to be a partner in that firm.

        Incidentally, as of today's date, the Chartis (formerly AIG) pooled rating is "A - XV", which was affirmed on 12/16/09 with a "negative" outlook".

      • They should spun off that sh*t (LG) to shareholders. Even end of the day, Kingsway would have to pay for it, in Chapter 11, they would get precisious time at this way.

        Like Autonation spun off, the ANC Rental to shareholders at 2000, and there is other examples too.

    • It's pretty simple; Kingsway management grossly under reserved the claims (for years), Underwriters used the low ball claims amounts to base their future years Renewals, thereby creating a vicious cycle of multi years of losses.

      The agents just shopped the market for their clients. IMO

    • That would certainly explain today's large percentage loss. It is a critical time but the failure of current management and the Board of Directors to adequately discharge their fiduciary duties to the shareholders is stunning. They should all be forced to resign.

      sop

 
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