A.M. Best Places Ratings of Mendota and Mendakota Under Review With Negative Implications; Ratings of TNC Group Unchanged

  
    
  
  
    
      A.M. Best Co. has placed the financial strength ratings (FSR) of 
      A (Excellent) and the issuer credit ratings (ICR) of “a” 
      of Mendota Insurance Company (Mendota) and its wholly owned 
      subsidiary, Mendakota Insurance Company (Mendakota), under review 
      with negative implications. Both companies are domiciled in St. Paul, 
      MN, and currently participate in the TNC Insurance Group seven 
      member, inter-company pool, a sub-group of The St. Paul 
      Travelers Companies, Inc. (St. Paul Travelers) (St. Paul, MN) [NYSE:STA].
    
    
      These rating actions are a result of St. Paul Travelers having reached a 
      definitive agreement to sell its dedicated non-standard automobile 
      subsidiaries, Mendota and Mendakota, to Kingsway Financial Services 
      Inc. (Kingsway) (Mississauga, Ontario) [TSX/NYSE:KFS].
    
    
      The placing of the ratings under review primarily reflects that upon the 
      completion of the sale of these companies, they will no longer be part 
      of the TNC Insurance Group pool and St. Paul Travelers, and will be 
      evaluated based upon their strategic positioning within Kingsway. The 
      FSRs of A (Excellent) and the ICRs of “a” 
      of TNC Insurance Group are unchanged by this planned transaction.
    
    
      The ratings of Mendota and Mendakota will remain under review pending 
      regulatory approval and completion of the transaction, which is expected 
      in second quarter 2007.
    
    
      For Best’s Ratings, an overview of the rating 
      process and rating methodologies, please visit www.ambest.com/ratings.
    
    
      Founded in 1899, A.M. Best Company is a full-service credit rating 
      organization dedicated to serving the financial services industries, 
      including the banking and insurance sectors. For more information, visit www.ambest.com.