Echelon enters motorcycle insurance market

Echelon General Insurance Company, a wholly-owned subsidiary of EGI Financial Holdings Inc. (TSX: EFH), entered the Ontario motorcycle insurance market with a $5-million brokerage agreement with Riders Plus Insurance.

Riders Plus, the Ontario-based motorcycle insurance brokerage, will place $5 million of motorcycle insurance premiums with Echelon in the first 12 months following the Jan. 15, 2006 commencement of sales. Under the terms of the agreement, Riders Plus brokerage commission will be paid with an expense allowance on new policies, in compensation for their expanded internal underwriting processes.

The Financial Services Commission of Ontario (FSCO) approved Echelon’s Ontario motorcycle insurance rules and rates in January.