Executives at the holding company that bought Kanawha Insurance Company in 2004 are engaged in “advanced negotiations” with parties that might want to acquire the holding company.
Kenneth Kuk, chief executive officer of KMG America Corp., Minneapolis, discussed KMG’s “review of strategic alternatives in a statement included with the company’s second-quarter earnings release.
KMG is reporting $559,000 in net income for the second quarter on $55 million in revenue, compared with $1 million in net income on $43 million in revenue for the second quarter of 2006.
Earned premiums were down at the old Kanawha business and for worksite policies at the company’s “legacy worksite” business.
KMG earlier reported increasing reserves because of concerns about claims at its medical stop-loss program.