TORONTO, Sept. 17 /CNW/ - EGI Financial Holdings Inc. ("EGI") today
announced that its wholly owned subsidiary, Echelon General Insurance Company,
is entering the Canadian emergency travel health insurance market through
agreements with key distributors, which are expected to generate $16 million
in annual premiums. Revenues in the emergency travel health line of business
are recorded on an exposure basis with premiums predominantly earned over the
September to March travel period.
Until earlier this year, EGI was prevented by a now-expired
non-competition agreement from participating in the emergency travel health
insurance business. EGI's Niche Products division staff has extensive
experience in this line of business. The travel health insurance market
continues to grow steadily due to the increased affluence and aging of the
Canadian population. These new programs will contribute to the continuing
growth of the Niche Products division, with most of the written premiums from
these new programs being generated prior to the end of 2007.
Echelon has developed these new programs with a group of highly respected
specialist distributors of travel health insurance. Destination: Travel Health
Plans of Toronto, Ontario; Travel Insurance Specialists Ltd. of Newmarket,
Ontario; Snowbird Medi-Quote Inc. of Calgary, Alberta and Securiglobe, Cabinet
de Services Financier of Brossard, Quebec are four of the top distributors of
travel health insurance in Canada.
"Establishing agreements with these new distributors marks Echelon's
first move into the Emergency Travel Health insurance business since the
expiry of EGI's non-competition agreement." said Douglas McIntyre, Chief
Executive Officer of Echelon. "Our entry into this niche marketplace is
consistent with our ongoing strategy to profitably expand our Niche Products
division and broaden market awareness of our capabilities."
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