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EGI Financial Announces Favourable A.M. Best Rating
TORONTO, June 16, 2006 - EGI Financial Holdings Inc. (TSX: EFH) today announced that its main operating subsidiary, Echelon General Insurance Company, has received a Financial Strength Public Data Rating of B++ (Very Good) from A.M. Best Company, the leading worldwide insurance-rating agency.
This rating, which places Echelon in one of A.M. Best’s ‘Secure’ categories, replaces the company’s previous ‘Not Rated’ status. Echelon‘s Financial Size Category is Class VII, being insurers with an adjusted policyholder surplus of US$50-100 million.
“We are very pleased with this favourable rating from such a widely-respected agency,” said Doug McIntyre, Chief Executive Officer of EGI Financial Holdings. “Not only does it confirm the financial strength and profitability of Echelon, it also represents an outstanding business opportunity, by opening the door to previously unobtainable business with brokers and clients whose security committees require that their insurers have a Secure (B+ or better) Best’s rating. We intend to fully explore these new business opportunities.”
In describing its rationale for the rating, A.M. Best said that it “...reflects a quantitative analysis of the company's results based on publicly available financial information. This quantitative analysis includes a review of important tests in three categories: balance sheet strength, operating performance and business profile.” This rating is effective from June 15, 2006 and is subject to change as the company develops. For the latest rating, access www.ambest.com.
About EGI Financial
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.
Forward-looking Information
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 Financial for 2006 and subsequent periods. Forward-looking information is typically identified by the words “looking forward”, “opportunities”, “see”, “believe”, “expect”, “anticipate”, “intend”, “estimate” and other similar expressions.
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. These factors include: EGI Financial’s success in developing and introducing new products and services, expanding existing distribution channels, developing new distribution channels and realizing increased revenue from these channels; legislative or regulatory developments in the jurisdictions where EGI Financial operates, including developments in provincial laws regulating insurance rates and rating methodologies; claims developments and the resolution of legal proceedings and related matters; the effect of applying future accounting changes; changes in tax laws; weather and other acts of God, in particular those affecting potential insurance claims; competition from established competitors and new entrants in the insurance industry; technological change; global capital market activity; interest rate fluctuations; currency value fluctuations; political conditions and developments; general economic conditions in Canada; and EGI Financial’s ability to anticipate and manage the risks associated with these factors. This list is not exhaustive of the factors that may affect any of EGI Financial’s forward-looking information. These and other factors should be considered carefully and readers are cautioned not to place undue reliance on 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.
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For further information:
Douglas E. McIntyre
Chief Executive Officer
EGI Financial Holdings Inc.
(905) 565-7960
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