Kingsway said that “one of the objectives of the transaction is for Jevco's financial strength rating to be judged independently of the Kingsway group of companies, which has adversely impacted Jevco's current standing.

Jevco provides a range of person and commercial insurance including automobile, motorcycle, snowmobile and all-terrain vehicles.

The company was acquired by Kingsway in 1997.

Kingsway said, subject to regulatory approval, it plans to relinquish control of Jevco and remain a non-influential investor.

Kingsway's main business is insuring drivers who do not meet the criteria for coverage by standard automobile insurers, and commercial automobile insurance.