Canadian Market (March 01, 2009)

ING INSURANCE COMPANY OF CANADA TO BECOME INTACT INSURANCE COMPANY

ING Insurance Company of Canada has become Intact Insurance Company.

Institutional and retail investors acquired ING Groep’s ownership interest in ING Canada in a Cdn$2.2-billion private placement and secondary offering. The deal transformed the subsidiary into an independent, Canadianlisted and widely-held company.

ING Canada Inc., the holding company, will be renamed Intact Financial Corporation later in May, following the approval of the name change by its shareholders. Its TSX ticker will also be changed from IIC to IFC.

ING Canada’s operations in 2008 generated Cdn$620 million in cash. At the end of the year, the company had Cdn$427.5 million in excess capital, a minimum capital test of 205% and no debt.

LINCOLN GENERAL CONTRIBUTES TO KINGSWAY’S 2008 LOSSES

Kingsway Financial Services Inc. (TSX: KFS, NYSE: KFS) reported a 2008 Q4 loss of US$360.4 million and a loss of US$405.9 million for the entire year.

“The disappointing results in 2008 reflect the impact of legacy operational problems,” said Shaun Jackson, president and CEO. “The main factors contributing to the loss were the protracted problems at our largest subsidiary Lincoln General, losses on our securities portfolio and resulting valuation allowance on future tax assets and impairments to goodwill.

Kingsway was also beset by the kind of investment declines reported generally throughout the industry.

Kingsway said its 2008 Q4 investment income decreased by 24% in the quarter primarily due to lower short-term yields in Canada and the United States, as well as a reduction in the size of the company’s investment portfolio as a result of the repayment of bank debt and the sale of York Fire.

Canadian operations, excluding York Fire, had a combined ratio of 108.4% compared with 95.4% a year ago.

FAIRFAX 2008 RESULTS SHOW RECORD INVESTMENT GAINS

Fairfax Financial Holdings Limited (TSX and NYSE: FFH) reported profits of US$346.8 million in 2008 Q4 and US$1.5 billion for 2008, reflecting record investment gains of US$2.72 billion in 2008.

Northbridge Financial Corporation, Fairfax’s Canadian commercial lines subsidiary, reported a profit of Cdn$46.7 million for 2008, marking a drop from a profit of Cdn$295 million in 2007.

Northbridge’s combined ratio climbed to 107.3% in 2008 from 92.3% in 2007.

For the year, Northbridge reported an underwriting loss of Cdn$83.3 million, a decrease from the underwriting profit of Cdn$84.3 million reported in 2007.

OdysseyRe, a reinsurance subsidiary of Fairfax, reported a net loss of US$450 million in 2008, compared to a net loss of US$350 million in 2007.