TORONTO, Jan. 2 /CNW/ - EGI Financial Holdings Inc. ("EGI") today
announced that it has entered into a five-year extension and amendment to its
existing distribution and services agreement with Co-operators General
Insurance Company ("Co-operators").
The Echelon Co-operators Services Agreement was originally entered into
on October 1, 2003 between EGI, its wholly owned subsidiaries Echelon General
Insurance Company ("Echelon") and EGI Insurance Managers Inc., and
Co-operators, and subsequently amended. Under the agreement, Co-operators
provides distribution for Echelon's non-standard auto policies through
Co-operators' insurance agents and also provides certain technical support
services to Echelon in connection with the run-off of insurance portfolios
that pre-date EGI's ownership of Echelon. In addition, Co-operators collects
premiums on behalf of Echelon for Echelon policies sold by insurance agents
engaged by Co-operators.
The Echelon Co-operators Services Agreement has been extended to now
expire on December 31, 2012, and may be automatically renewed thereafter for
periods of one year each. Any party may terminate the agreement upon 180 days
written notice to the other parties. Under the agreement, Echelon pays to
Co-operators a fee of 11.5% of gross written premiums received for
Co-operators' agency-originated business placed with Echelon. Co-operators has
agreed, so long as the agreement is in force (i) to use reasonable efforts to
encourage its agents to provide non-standard auto business to Echelon (subject
to legal requirements and Co-operators always acting in the best interest of
its customers), and (ii) not to establish or invest in any non-standard
automobile insurance company that competes with Echelon in Canada.
"We are pleased to announce the extension of this important distribution
agreement with Co-operators", said Douglas McIntyre, Chief Executive Officer
of EGI. "We look forward to building upon our strong relationship with
Co-operators and working in partnership with their executives in realizing on
the potential of mutually beneficial opportunities in the future."
About EGI Financial Holdings Inc.
Founded in 1997, EGI Financial operates in the property and casualty
insurance industry in Canada and the United States, primarily focusing on
non-standard automobile insurance and other niche and specialty general
insurance products. EGI Financial's common shares are traded on the Toronto
Stock Exchange under the symbol EFH.
This news release contains forward-looking statements 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 Financial for 2007 and
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 Financial's control, affect
the operations, performance and results of EGI Financial and its business, and
could cause actual results to differ materially from the expectations
expressed in any of this forward-looking information.
EGI Financial does not undertake to update any forward-looking
information. Additional information about the risks and uncertainties about
EGI Financial's business is provided in its disclosure materials, including
its annual information form, filed with the securities regulatory authorities
in Canada, available at www.sedar.com.
For further information:
For further information: Bill Steele, V.P. Business Development, EGI
Financial Holdings Inc., Telephone: (905) 565-7758, Email: email@example.com