TORONTO, Sept. 17 2007 – 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. www.egi.caTags: Capgemini, Efma, InsurTech, World Insurance Report