TORONTO, Dec. 3, 2013 /CNW/ - EGI Financial Holdings Inc. ("EGI") (TSX:
EFH), announced today that it has completed the sale of its U.S.
non-standard automobile insurance operations to White Pine Insurance
Company, a Michigan-based specialty insurance company. The closing is
effective November 30, 2013.
As previously announced, the transaction has resulted in a pre-tax $5.7
million reduction in EGI's book value, which has been reflected in its
third quarter financial statements. EGI will remain responsible for
the run-off of its discontinued Texas operations.
"The completion of this transaction is an important milestone in the
transformation of our company," commented Steve Dobronyi, Chief
Executive Officer of EGI. "It will add an estimated $0.30 per share to
our annual earnings in 2014 and will allow us to focus our management
time and resources on our profitable Canadian and European businesses."
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 general insurance products.
EGI's common shares are traded on the Toronto Stock Exchange under the
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 2013 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
EGI and its business and could cause actual results to differ
materially from the expectations expressed in any of this
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
EGI Financial Holdings Inc.