Queensway Announces Developments in Argonaut Deal, Revised Sales Process

Ernst & Young Inc., the Interim Receiver of Queensway Financial Holdings Limited (Queensway), announced that the agreement between the Argonaut Group Inc. and Queensway for the purchase and sale of North Pointe Financial Services Inc., Hermitage Insurance Company, Consolidated Property & Casualty Insurance Company and Universal Fire and Casualty Insurance Company (collectively the “Insurance Companies”) has been terminated.

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

In the interim, the Insurance Companies continue to operate profitably in the normal course.