DCAP Announces Major Changes: Acquisition of Insurance Company Completed, Change of Company Name and Sale of Remaining Stores
02 July 2009 - 11:15PM
Business Wire
DCAP Group, Inc. (NASDAQ: DCAP) today announced that the
Commercial Mutual Insurance Company (�CMIC�) Plan of Conversion
(the �Plan�), providing for the conversion of CMIC from an advance
premium cooperative to a stock property and casualty insurance
company has become effective as of July 1, 2009. Pursuant to the
Plan, DCAP has acquired a 100% equity interest in CMIC in
consideration of the conversion of its $3,750,000 principal amount
of surplus notes of CMIC. In addition, DCAP forgave all accrued and
unpaid interest on the surplus notes as of the date of
conversion.
The name of the new insurance company is �Kingstone Insurance
Company.� DCAP�s name has been changed to �Kingstone Companies,
Inc.�, as previously approved by its shareholders. DCAP�s new
NASDAQ trading symbol is �KINS�.
The following summarizes the changes:
Item � Was � Is Now Company�s Name � DCAP Group, Inc. � Kingstone
Companies, Inc. Subsidiary Insurance Company Name � Commercial
Mutual Insurance Company � Kingstone Insurance Company NASDAQ
Symbol � DCAP � KINS Business Sector � Insurance Brokerage �
Property and Casualty Insurance Company
The Company also announced that it has sold its three
Pennsylvania stores. This transaction is the final stage of the
Company�s stated goal of exiting the retail insurance business and
entering the insurance company business. On April 17, 2009, DCAP
sold its store locations in New York State. Effective May 1, 2009,
DCAP sold its franchise business.
Barry Goldstein, Chairman and CEO, said, �During Q2, through a
series of three transactions, we sold all of our retail offices as
well as our franchise business. We exited the insurance
distribution sector entirely. The exiting from the insurance
brokerage sector was part of our strategic plan to change our
company into an insurance carrier.�
Mr. Goldstein continued, �At this time I am pleased to report
that the conversion of CMIC to a stock insurance company is
complete.. We began the process in February 2007 and, after an
extraordinary amount of work by all concerned, the conversion is
final. CMIC is now Kingstone Insurance Company. DCAP�s new name is
Kingstone Companies, Inc. to reflect the importance of this new,
wholly-owned subsidiary to our company. All the activity of
Kingstone Insurance Company will be included in our consolidated
financial statements beginning July 1. We will be preparing and
filing with the Securities and Exchange Commission certain
pro-forma financial statements with regard to Kingstone Insurance,
but, in advance of such filing, it is important to note that the
following financial information was included in the Annual
Statement for the year ended December 31, 2008 by Kingstone
Insurance Company (formerly CMIC), as filed with the New York State
Insurance Department:
Total Assets: � $21.58 million Policyholder Surplus: $ 7.75 million
Gross Premiums Written: $24.74 million
We look forward to providing additional information in the
future about Kingstone Insurance.�
Forward Looking Statements
Statements in this press release may contain �forward-looking
statements� within the meaning of the Private Securities Litigation
Reform Act of 1995. All statements, other than statements of
historical facts, may be forward-looking statements. These
statements are based on management�s current expectations and are
subject to uncertainty and changes in circumstances. These
statements involve risks and uncertainties that could cause actual
results to differ materially from those included in forward-looking
statements due to a variety of factors. More information about
these factors can be found in the Company�s filings with the
Securities and Exchange Commission, including its latest Annual
Report filed with the Securities and Exchange Commission on Form
10-K. The company undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
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