Kingsway Financial Services Inc. has closed the sale of its nonstandard automobile insurance companies, Mendota Insurance Co., Mendakota Insurance Co. and Mendakota Casualty Co., to Premier Holdings LLC.

Canada-based Kingsway said it used the final aggregate purchase price of $28.6 million to acquire limited liability investments, equity investments and other investments, which were owned by Mendota at the time of the closing, that have a carrying value of $22.9 million.

Approximately $5 million was placed into an escrow account to be used to satisfy potential indemnity obligations under the definitive stock purchase agreement.