Kingsway Makes Cuts

Article Excerpt

KINGSWAY FINANCIAL SERVICES $6.60 (Toronto symbol KFS; SI Rating: Speculative) (905-629-7888; www.kingswayfinancial. com; Shares outstanding: 55.1 million; Market cap: $363.5 million) plans to make a number of changes that it hopes will reduce annual its costs by $20 million U.S. The measures include job cuts, salary freezes and corporate overhead reductions. To further cut costs Kingsway will merge four of its U.S. subsidiaries. It will also eliminate unprofitable businesses and increase insurance rates in an effort to restore profitability. Kingsway’s initiatives are in large part a response to pressure from New York-based money manager The Stilwell Group, which owns 8.4% of Kingsway. Stilwell wants Kingsway to quickly reduce costs and focus on its core businesses in order to increase long-term shareholder value. Kingsway is a buy. buy…

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