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Kingsway Financial Services Inc. Message Board

  • noodleproducer noodleproducer Feb 9, 2009 10:18 PM Flag

    Time to Say Goodbye

    Lincoln General will soon disappear. With an A.M. Best of "B-", and counterparty ratings in the same tank (more importantly Kingwsay Reinsurance) this company will be in either rehabilitation, conservation, or liquidation no later than the 2nd quarter of 2009 by the Pennsylvania Department of Insurance.

    Reliance Holdings went down the same way.

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    • The steps in PA are in order:
      1. Supervision
      2. Suspension
      3. Rehabilitation
      4. Liquidation

      You could look it up.

      • 1 Reply to insuranceaguy
      • Thank you for the clarification. McCarran-Ferguson tends to complicate things somewhat.

        Because of that 1945 act, there are 50 different ways to handle a troubled carrier (despite what the NAIC might say). I'm not concerned about the "steps". I'm concerned about the outcome - we do things differently in this state, which might not necessarily follow the Pennsylvania recipe.

        The fact of the matter is that Lincoln General has been placed under a microscope by the Pennsylvania Department of Insurance and that Lincoln General's parent was officially put on notice that some regulatory action is imminent. I don't particularly care where Lincoln General is in the Pennsylvania Department of Insurance's four step flow chart.

        The process isn't important. The fact that the regulators in Lincoln's state of domicile are involved IS important - particularly to policy holders. Kingsway's press release last week about their third quarter results was compelling, and I suggest you read it.

    • Lincoln lost $120 Million first quarter and $344 million last quarter.

      Their net worth before these losses was $134 Million. They're upside down hundreds of millions as of last year.

      If the PA D.O.I. waits until the second quarter they are idiots.

      I'm not sure what will happen to the other insurance companies Kingsway is holding.

    • you are correct--14yrs ins. co. exec and 30 yrs mga--this co. is toast.with classes of biz they have been taking on--very hard for them to survive--claims made will help on some classes but the auto and contr. deadly--good luck 818-591-3010

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