TORONTO, Jan 6 2006 – EGI Financial Holdings Inc. (TSX: EFH) today announced that its wholly-owned subsidiary, Echelon General Insurance Company, is entering the Ontario motorcycle insurance market with a $5 million brokerage agreement with Riders Plus Insurance.
Riders Plus, Ontario’s largest motorcycle insurance brokerage, has agreed to place $5 million of motorcycle insurance premiums with Echelon in the first twelve months following the start of sales under the agreement, scheduled to begin on January 15, 2006. The brokerage commission terms under the agreement are comparable to Echelon’s existing private passenger automobile insurance agreements, except that Riders Plus will be paid an expense allowance on new policies, as compensation for their expanded internal underwriting processes.
“Our agreement with Riders Plus marks Echelon’s first major move in Ontario into a broader range of vehicle types, while staying within our specialty auto niche,” said Douglas McIntyre, Chief Executive Officer of Echelon. “Riders Plus brings significant underwriting expertise and distribution capability. They are by far the recognized leader in this market.”
“We have been impressed with Echelon’s understanding and responsiveness to our requirements, to provide appropriate coverage and premiums to the growing market of mature motorcyclists,” said Mike Babineau, President of Riders Plus.
The Financial Services Commission of Ontario (FSCO) approved Echelon’s Ontario motorcycle insurance rules and rates on January 6, 2006.
About EGI Financial Holdings Inc.
Founded in 1997, EGI Financial operates in the property and casualty insurance industry in Canada, primarily focusing on non-standard automobile insurance and other niche and specialty general insurance products.
This news release contains forward-looking statements based on current expectations. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. EGI Financial assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements. Risks and uncertainties about EGI Financial’s business are more fully discussed in its disclosure materials, including its prospectus, filed with the securities regulatory authorities in Canada, available at www.sedar.com.