Intercontinental Warranty Services Inc., a provider of after-market vehicle protection services to credit unions, said it will sell certain assets to Kingsway Financial Services Inc.
The Boca Raton, Fla.-based IWS provides vehicle service agreements, mechanical breakdown insurance and guaranteed asset protection to their members in conjunction with their auto loans.
Located in Chicago, Kingsway is a holding company functioning as a merchant bank and owns or controls stakes in several insurance industry assets, according to IWS. The company utilizes its subsidiaries, 1347 Advisors LLC and 1347 Capital LLC, to pursue opportunities acting as an adviser, investor and a financier, IWS said.
IWS President/CEO James Hawk said the change of ownership will be essentially transparent to client credit unions, but noticeable enhancements will include a broader product line and greater staff resources, along with improved technology.
Current management, led by Hawk, will remain in place, according to IWS.
Although the official acquisition will take place this month, IWS said the two companies have already been working on technology upgrades, such as new servers, database and telephone system.
Additional improvements will include a redesigned corporate website and the ability to reach clients through social networking systems. The company said it also expects to add to the headcount in areas such as sales, training and information technology.
Assurant Solutions will continue to underwrite the IWS VSA program, according to Keith Meier, senior vice president and general manager of extended protection solutions at Assurant Solutions.
Both IWS and Kingsway have been in the insurance business more than 20 years, the companies said.