Crosswinds Announces Completion of Sale of Interests in Monarch

TORONTO, Feb. 22, 2018 (GLOBE NEWSWIRE) -- Crosswinds Holdings Inc. ("Crosswinds" or the "Company" (TSX:CWI) is pleased to announce that following the satisfaction of all closing conditions, including receipt of regulatory approval from the Florida Office of Insurance Regulation, it has completed the previously announced sale of all of its interests in Monarch Delaware Holdings LLC ("Monarch") to an affiliate of its joint venture partner, Federated National Holding Company ("Federated National" or the "Purchaser") (the "Transaction"). 

The interests in Monarch were sold by Crosswinds' majority owned subsidiary, Crosswinds Investor Monarch LP ("CIML"), for an aggregate purchase price of USD$12,282,000 paid to CIML. Crosswinds, in its capacity as a majority limited partner of CIML, received approximately USD$10,500,000 of those proceeds.

Upon closing of the Transaction, the Company's wholly-owned subsidiary, Crosswinds Re, entered into a right of first refusal ("ROFR") agreement permitting it to write up to USD$10,000,000 of limit on reinsurance business with Federated National, at market terms and rates, during 2018. The agreement terminates on December 31, 2018 and its economic benefit to Crosswinds Re will depend upon market conditions.

In addition, Crosswinds AUM LLC ("Crosswinds AUM"), another of the Company's wholly-owned subsidiaries, entered into an agreement with Federated National for Crosswinds AUM to consult on insurance market and general operational matters (the "Consulting Agreement").  The Consulting Agreement will be in effect until it terminates on December 31, 2018.  Crosswinds AUM is entitled under the terms thereof to earn USD$300,000 in fees (less any fees already earned by it during 2018 under the existing investment advisory agreement in place between Crosswinds AUM LLC, Monarch and certain affiliates of Monarch, which agreement was terminated effective on Closing).  

Copies of the ROFR agreement, the Consulting Agreement and the purchase agreement for the Transaction will all be available under the Company's profile at www.sedar.com and any summary herein is qualified in its entirety by reference to the applicable agreements.

Crosswinds Holdings Inc.  

Crosswinds is a publicly traded private equity firm and asset manager targeting strategic and opportunistic investments in the financial services sector with a particular focus on the insurance industry.

More information

Colin King
Tel:  1-800-439-5136  [email protected]   www.crosswindsinc.com 

Caution Regarding Forward-Looking Information
This release includes certain forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plans" or "continue" or the negative thereof or variations thereon or similar terminology. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct.  These forward-looking statements are subject to a number of risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements. Reference should be made to the risk factors in the Company's 2016 Annual Information Form, in the Management's Discussion and Analysis for the year ended December 31, 2016 and in our other filings with Canadian securities regulators.