(November 16 – 10:10 ET) – Queensway Financial Holdings Ltd. is exiting the commercial auto liability insurance market in southern Florida and winding up the affairs of Queensway Casualty Insurance Co.

As a result of Queensway exiting these lines of business, it has written off the approximately $11.7 million in goodwill attributable to all of the business in the Sun States Insurance Group.

Both Queensway Casualty and International Indemnity Co. have filed financial statements with the Florida and Georgia Departments of Insurance showing shareholder equity sliding from approximately $18 million to a negative $3 million when prepared according to statutory accounting principles.

Increased claims reserves and the writedown of certain agent balances and other assets in the Sun States Insurance Group has resulted in the loss of equity. Queensway says it is working with the Florida and Georgia Departments of Insurance to assure the orderly wind-up of business of International Indemnity and Queensway Casualty.

Commercial insurance will continue to be underwritten by Sun States Insurance Group out of its Jacksonville office. James Petcoff, CEO and chairman of Queensway Financial, says, “These actions reflect management’s continuing efforts to identify the core, profitable lines of business to which Queensway should devote its resources in the future.”

Queensway Financial also announced the appointment of two new directors to its board: Kevin Charlebois and David Ogilvie. Charlebois was president of JRF Financial consultants. Ogilvie was senior vice president and CFO of GAN Canada.
-IE Staff