Kingsway provides details on selected exposures



    TORONTO, Sept. 17 /CNW/ - (TSX:KFS, NYSE:  KFS) Kingsway Financial Services
Inc. has a conservatively invested securities portfolio valued in excess of
$3.3 billion as at June 30, 2008 (all amounts are stated in U.S. dollars). As
part of this portfolio, Kingsway holds $17 million of par value fixed income
investments in Lehman Brothers which includes $3 million of subordinated debt
and $14 million of senior notes. Kingsway also holds $20.75 million,
$6.5 million and $3 million of par value fixed income investments in
International Lease Finance Corporation, AIG SunAmerica Life Insurance Company
and American General Finance Corporation, respectively, subsidiaries of
American International Group ("AIG"). Kingsway does not have any investment
exposure to AIG or any of its other subsidiaries. Kingsway has no investment
in Washington Mutual nor does it have any derivatives exposure to any of the
above discussed companies.
    "Our well diversified securities portfolio has proven to be a prudent
business model during these turbulent market conditions", said Shaun Jackson,
President and CEO. "We will continue to work with our securities portfolio
managers to determine the impairment charges that could arise during the third
quarter."
    Despite the magnitude of the storm damage and disruption from Hurricane
Ike, Kingsway has received very little actual claim notification to date.
Kingsway anticipates that gross losses from the storm will fall well within
the limits of its catastrophe reinsurance protection which limits the net loss
(before taxes) to $2 million.

    About the Company

    Kingsway Financial Services Inc. is one of the largest non-standard
automobile insurers and truck insurers in North America based on A.M. Best
data that we have compiled. The Company also provides commercial and personal
property insurance, standard automobile insurance, motorcycle insurance and
other specialty insurance where limited competition and an emphasis on
underwriting profit provide an opportunity for consistent and above-average
returns. Kingsway Financial operates through 11 wholly-owned insurance
subsidiaries in Canada and two insurance agencies in Canada and the United
States. The Company employs approximately 2,900 people in Canada and the
United States and is headquartered in Mississauga, Ontario, Canada. The common
shares of Kingsway Financial Services Inc. are listed on the Toronto Stock
Exchange and the New York Stock Exchange, under the trading symbol "KFS".

    %SEDAR: 00003152E          %CIK: 0001072627




For further information:

For further information: Shelly Gobin, Senior Vice President and Chief
Financial Officer, Tel: (905) 677-8889, Fax: (905) 677-5008, Web Site:
www.kingsway-financial.com


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