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 symbol EFH.
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 forward-looking information.
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.
Email: [email protected]