Kingsway Financial Services Inc. has struck a deal to sell Hawaii hurricane coverage provider Zephyr Insurance Co. Inc.

Zephyr is being acquired by Ocean Harbor Holding Inc. and MP Holdings LLC, a Hawaii-based investor group. The transaction is expected to be completed during the fourth quarter of this year subject to the receipt of regulatory approvals.
Zephyr, formed in 2000, is the leading provider of residential hurricane insurance coverage in Hawaii having generated $36 million in premiums for the first six months of this year, or 7 percent of the premiums of the Kingsway group of companies.
Toronto-based Kingsway bought Zephyr in 2005.