Kingsway Financial Services said today it has completed the sale of Zephyr Insurance Co., Hawaii's largest hurricane insurance company.

Toronto-based Kingsway announced last month that it had reached an agreement to sell Zephyr for $31.5 million to a group consisting of East Coast insurer Ocean Harbor Holding Inc. and MP Holdings LLC, a Honolulu-based firm linked to the MacNaughton Group, a real estate development and retail company.
The sale comes about four years after Kingsway bought Zephyr, which provides hurricane coverage to more than 70,000 clients in Hawai'i. Zephyr is based in Honolulu and employs 17 staffers who will be retained in the purchase.
During the first half of the year Zephyr had gross premiums written of $36 million. Kingsway said it expects the transaction to close in the fourth quarter pending regulatory approvals.