Mergers and Acquisitions

AON CORPORATION TO ACQUIRE BENFIELD GROUP LIMITED

Aon is acquiring reinsurance intermediary Benfield for 3.50 (Cdn$6.79) per share in cash and will assume 91 million (Cdn$176.43 million) of Benfield’s net debt, representing an enterprise value of approximately 935 million (Cdn$1.81 billion) on a fully diluted basis, the company notes in a release.

Assuming regulatory approval of the deal, Aon would integrate Benfield’s business with its existing reinsurance operations and operate the division globally under the newly created Aon Benfield brand.

KINGSWAY SELLS YORK FIRE & CASUALTY FOR CDN$95 MILLION

Kingsway Financial Services Inc. is selling York Fire & Casualty Insurance Company to La Capitale General Insurance Inc., a member company of the mutual company La Capitale Financial Group Inc., which is owned by members of Quebec’s civil service.

The transaction is expected to be completed during 2008 following the receipt of regulatory approvals.

York writes standard personal lines automobile and property insurance in Ontario and Alberta.

For the first six months of 2008, York had gross premiums written of approximately Cdn$48 million, or 5% of the premiums of the Kingsway group of companies, and produced an underwriting loss.

Kingsway said it anticipates receiving gross proceeds from the transaction of Cdn$95 million, estimated to be approximately two times York’s shareholder’s equity at the closing of the transaction. At closing, Kingsway expects to record an estimated gain before taxes on the transaction of approximately Cdn$50 million.