Kingsway Financial shareholder remains critical of company following meeting

By Lisa Kerner

Charlotte, N.C., Nov. 24 - Kingsway Financial Services, Inc. representatives met with shareholder Stilwell Group as planned on Friday, after which Stilwell said the company must act to address its shareholders' lack of confidence in Kingsway's leadership.

In agreeing to meet with Kingsway, Stilwell said its demand for the removal of the company's chief executive officer, W. Shaun Jackson, was non-negotiable.

According to a Stilwell news release, the shareholder believes that Kingsway should sell and/or run off non-core lines of business and use excess capital to retire its debt at a discount and repurchase shares of common stock.

Stilwell is also unhappy with Kingsway's expense reductions to date and urged the company to "immediately reduce overhead expenses in the range of $50 million."

Stilwell Group is a New York-based money management firm that owns approximately 4.61 million shares, or 8.37%, of Kingsway's outstanding shares of common stock.

It was previously reported that Stilwell served Kingsway, a Mississauga, Ont., property and casualty insurance company, with a requisition for a special shareholders meeting for the purpose of removing Jackson and chairman F. Michael Walsh from Kingsway's board of directors. Following the meeting with Kingsway, Stilwell offered to rescind its requisition and have Walsh remain on the board if the shareholder's nominees were added to the board.

Stilwell had wanted to replace Jackson and Walsh with its nominees, Spencer L. Schneider, Esq., and Larry G. Swets Jr., CFA.

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