A.M. Best Places Ratings of York Fire & Casualty Insurance Company Under Review with Developing Implications

Business Wire, August 28, 2008

OLDWICK, N.J. -- A.M. Best Co. has placed the financial strength rating (FSR) of B (Fair) and issuer credit rating (ICR) of "bb" of York Fire & Casualty Insurance Company (York) (Mississauga, Ontario) under review with developing implications.

These rating actions are a result of the recent announcement by Kingsway Financial Services Inc. (Kingsway) (Mississauga, Ontario) (NYSE: KFS), York's parent, to sell the company to La Capitale, Compagnie d'Assurance Generale (La Capitale) (Quebec). York's ratings will remain under review pending completion of the transaction, which is subject to regulatory approval. A fourth quarter 2008 closing date is anticipated. The ratings of Kingsway and its remaining operating subsidiaries are unchanged at this time.

Kingsway is a Canadian holding company whose common shares are publicly traded on the Toronto and New York Stock Exchanges. Its insurance subsidiaries in the United States and Canada primarily specialize in non-standard automobile and commercial trucking insurance products.

La Capitale is the general insurance subsidiary of La Capitale Financial Group, Inc., which is ultimately owned by La Capitale Civil Service Mutual. The public data rating (pd) of A-pd (Excellent) of La Capitale is unchanged by this transaction as public data ratings do not incorporate the comprehensive scope and analysis afforded by an interactive rating.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.> Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.