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

OLDWICK, N.J. -- 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.