TORONTO, March 28, 2014 /CNW/ - EGI Financial Holdings Inc. ("EGI")
(TSX: EFH) today announced that it has entered into a definitive
agreement with SGI CANADA ("SGI") to acquire SGI's share of the
Insurance Company of Prince Edward Island ("ICPEI"). ICPEI is the
largest Maritimes-based property and casualty insurance company in
Canada operating through independent brokers in Prince Edward Island,
New Brunswick and Nova Scotia.
"This is an important acquisition for our company, as it accelerates our
strategy of growing our Personal Lines auto insurance business in
Canada," said Steve Dobronyi, Chief Executive Officer of EGI. "We are
very excited to have the opportunity to join up with the ICPEI team of
professionals to grow our insurance operations in the Maritimes."
EGI will purchase SGI's 75% ownership of ICPEI. SGI is committed to
work closely with EGI to ensure a smooth transition for customers,
brokers and employees. In addition, EGI has also entered into a
perpetual software licence agreement with SGI for the use of SGI's
policy management system for all of EGI's business.
"We are very pleased to be joining the EGI family," commented Charlie
Cooke, President and Jim Revell, Chief Operating Officer of ICPEI.
"Our businesses and capabilities complement each other nicely and we're
looking forward to building a profitable and successful operation
together. This is a very positive development for all of our
stakeholders - our customers, brokers, employees and business
The acquisition is expected to provide a number of strategic benefits
Added scale of $26 million of premiums
Immediate accretion to earnings and return on equity
A Maritimes-based office location for sales, marketing, customer
service, underwriting and claims
Deeper expertise in auto insurance, which comprises approximately 70% of
Added expertise in homeowners insurance, small commercial and other
supporting product lines
Market synergies with EGI's Nova Scotia auto business, sold through
Access to ICPEI's distribution partners
A broader product offering for EGI's existing distributors
An upgrade of EGI's policy administration system to a more automated,
multi-product, customer-based system
The transaction is expected to close in early summer, subject to
satisfaction of customary closing conditions.
Founded in 1997, EGI operates in the property and casualty insurance
industry in Canada and Europe, primarily focusing on non-standard
automobile insurance and other specialty P&C insurance products. EGI
operates in Canada as Echelon Insurance. EGI's common shares are
traded on the Toronto Stock Exchange under the symbol EFH. More
information on EGI can be found at www.egi.ca.
The Insurance Company of Prince Edward Island is the largest Maritime
province based insurer in Canada which provides automobile, home and
commercial insurance through a network of independent insurance
brokers. In 2013, it wrote $26 million of premiums. With its head
office in Charlottetown, Prince Edward Island, it also operates in New
Brunswick and Nova Scotia. Cooke Holdings Inc., a minority shareholder
of ICPEI since its founding in 1987, remains a 25% owner of ICPEI. For
more information, see www.icpei.ca.
About SGI CANADA
SGI CANADA sells property and casualty insurance in four provinces. It
operates as SGI CANADA in Saskatchewan, Alberta and Manitoba, and
Coachman Insurance Company in Ontario. It sells its products
exclusively through independent insurance brokers in all
jurisdictions. Visit SGI CANADA at www.sgicanada.ca.
This news release contains forward-looking information based on current
expectations. This information includes, but is not limited to,
statements about the operations, business, financial condition,
priorities, targets, ongoing objectives, strategies and outlook of EGI
for 2014 and subsequent periods.
This information is based upon certain material factors or assumptions
that were applied in drawing a conclusion or making a projection as
reflected in the forward-looking information. By its nature, this
information is subject to inherent risks and uncertainties that may be
general or specific. A variety of material factors, many of which are
beyond EGI's control, affect the operations, performance and results of
and its business and could cause actual results to differ materially
from the expectations expressed in any of this forward-looking
EGI does not undertake to update any forward-looking information.
Additional information about the risks and uncertainties about EGI's
business is provided in its disclosure materials, including its Annual
Information Form and Management Discussion & Analysis, filed with the
securities regulatory authorities in Canada, available at www.sedar.com.
SOURCE: EGI Financial Holdings Inc.
For further information:
Investor Relations Manager