Home Capital Group began in 1986, when a new management group acquired control of Sonor Resources Corporations, a virtually inactive energy company. The energy operations were disposed of and management embarked on the development of a specialized financial services company.
In October 1986, the company went public and 2.5 million Class ‘B’ subordinated voting shares were issued for proceeds of $4.7 million. Of this, $3.1 million was used as capital in the start-up of Kingsway General Insurance Company.
In December, 1986, the company acquired 100% of Home Savings in exchange for $3.4 million Class ‘B’ subordinated voting shares. At this time, the company changed its name to Home Capital Group Inc. to reflect the acquisition.
Home Capital Group decided to focus its resources
on the growth of Home Savings and in 1989 sold Kingsway to a management and investment group
for $3.9 million.