The deal to sell the assets of failed insurer Queensway Financial Holdings Ltd. has fallen through.

Ernst & Young Inc, the interim receiver of Queensway, says that the agreement between the Argonaut Group Inc. and Queensway for the sale of North Pointe Financial Services, Inc., Hermitage Insurance Company, Consolidated Property & Casualty Insurance Company and Universal Fire and Casualty Insurance Company has been terminated.

Ernst & Young Inc. also confirms that discussions have been advanced with several interested purchasers for certain of these companies. It notes that Queensway’s senior lenders are cooperating with Queensway and the various state regulatory agencies to ensure the sale process continues without disruption to the ongoing operation of the companies.