An anonymous director reports

KINGSWAY ANNOUNCES FORMATION OF NEW STRATEGIC UNIT

Kingsway Financial Services Inc. has made another action intended to position the company to rebuild shareholder value over the long term. The company announced its subsidiary, 1347 Advisors LLC, was formed to provide consulting, corporate development, corporate finance, and actuarial services to Kingsway, Kingsway affiliates and third party clients.

In its first transaction, announced earlier today, 1347 Advisors signed a management services agreement, effective Aug. 29, 2011, with United Insurance Holdings Corp., a Florida-based homeowners insurer. 1347 Advisors will provide services relating to the chief financial officer role, corporate development and consulting.

Kingsway intends to use transactions, such as the one announced earlier today with United, as well as the creation of 1347-branded companies to leverage the skills of its team and enhance its merchant-banking capabilities as a way of creating value for Kingsway's shareholders.

We seek Safe Harbor.