Press

Press Releases 2002

Kingsway Agrees to Become Underwriter to the PetCare Pet Insurance Programs in Canada

OAKVILLE, ON, June 4, 2002 - Kingsway Financial Services Inc. ("Kingsway") (TSE: KFS, NYSE: KFS) today announced that its wholly owned subsidiary, Kingsway General Insurance Company, has entered into an agreement with PetCare Insurance Brokers Ltd ("PetCare"), a wholly owned subsidiary of Pethealth Inc. ("Pethealth") (TSX: PTZ) to underwrite PetCare´s pet insurance programs in Canada.

This agreement is the second between Kingsway and Pethealth. In January 2001 Kingsway agreed to underwrite the PetCare pet insurance programs in the United States through its wholly owned subsidiary, Lincoln General Insurance Company. That agreement provided the basis for Pethealth to begin distributing its pet insurance programs in the United States in May of last year.

"I am delighted to be able to announce this second agreement with Pethealth," said Bill Star, President and Chief Executive Officer of Kingsway. "We have been very pleased with Pethealth´s commitment to developing the pet insurance industry in the United States and have been pleased as to the profitability of the program to date. We have also followed with great interest Pethealth´s operations in Canada as PetCare has become the number one Canadian provider of pet insurance in a very short period of time. We are pleased to strengthen our relationship with Pethealth by underwriting the PetCare programs in both Canada and the United States."

PetCare has announced a number of distribution-based agreements in Canada, most recently with the Insurance Services Department of London Drugs ("London Drugs") where PetCare will market its line of pet insurance programs under the betterpethealth brand name. Additionally, PetCare has agreements with Transcontinental Media, owners of Canadian Living, as well as with Petcetera, a retail pet specialty supply chain of stores based principally in western Canada. The PetCare programs are also distributed through veterinary clinics across Canada and are available online at www.petcareinsurance.com

"We have been very pleased with the level of support we have received from Kingsway as we have set out to establish our programs in the United States over the past year and felt that it made sense for us to streamline our underwriting relationships by adding Kingsway to our Canadian base of underwriters as well," said Mark Warren, President and Chief Executive Officer of PetCare. "The Kingsway name and reputation will lend significant further credibility to our programs for pet owners across Canada."

ING Wellington, a member of the ING Group also currently underwrites the PetCare pet insurance programs in Canada. Kingsway will replace CGU Elite Insurance Company and will begin assuming underwriting risk as of July 1, 2002.

Activations of the 2-month gift increased by 184% between the months of January and March. We also are expecting to see a very significant number of those on the ShelterCare program convert into the other PetCare pet insurance programs offered and would also expect to see more and more collateral sales generated through the Petfinder partnership".

About Kingsway

Kingsway´s primary business is the insuring of automobile risks for drivers who do not meet the criteria for coverage by standard automobile insurers. The Company currently operates through nine wholly owned subsidiaries in Canada and the U.S. Canadian subsidiaries include Kingsway General Insurance Company, York Fire & Casualty Insurance Company and Jevco Insurance Company. U.S. subsidiaries include Universal Casualty Company, American Service Insurance Company, Southern United Fire Insurance Company, Lincoln General Insurance Company, U.S. Security Insurance Company, American Country Insurance Company and Avalon Risk Management, Inc. The Company also operates reinsurance subsidiaries in Barbados and Bermuda. Kingsway Financial, Kingsway General, York Fire, Jevco and Kingsway Reinsurance (Bermuda) are all rated "A" Excellent by A.M. Best. The Company´s senior debt is rated ´BBB´ (investment grade) by Standard and Poor´s and Dominion Bond Rating Service. 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".

About Pethealth

Founded in February 1998, Pethealth is the leading provider of pet insurance in Canada and one of the fastest growing providers of pet insurance in North America, currently offering its PetCare Pet Insurance Programs in 9 provinces, 42 states and Washington, D.C. In Canada, the Company´s pet insurance is offered to owners of dogs and cats through its wholly owned subsidiary, PetCare Insurance Brokers Ltd. ING Wellington, a member of the ING Group, and CGU Elite Insurance Company, a member of CGU Group Canada Ltd., underwrite PetCare products in Canada. The PetCare programs also carry the exclusive endorsements of a number of industry leaders, including veterinary medical associations representing approximately four out of five practising veterinarians in Canada. In the United States, the PetCare Pet Insurance Programs are underwritten by Lincoln General Insurance Company, York, PA, through Avalon Risk Management Inc. Pethealth is based in Oakville, Ontario. Institutional investors include Dynamic Mutual Funds, through its Dynamic Venture Opportunities Fund.

The Canadian Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Not for dissemination in the United States of America or to United States news wire services.

For further information: E. Mark Warren, President and Chief Executive Officer of Pethealth or Glen H. Tennison, Chief Financial Officer of Pethealth at (905) 842 2615 or visit the Web site at www.petcareinsurance.com.; Shaun Jackson, Executive Vice President and Chief Financial Officer of Kingsway at (905) 629 7888 or visit the Web site at www.kingsway-financial.com.

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