EGI Financial Holdings has divested its US non-standard automobile insurance operations to White Pine Insurance Company, a Michigan-based specialty insurance company.
The closing of the transaction is effective from 30 November 2013.
Under the terms of the agreement, which was originally signed in August, the transaction has resulted in a pre-tax $5.7m reduction in EGI’s book value, which has been reflected in its third quarter financial statements.
Based on the original contract, White Pine purchased EGI Insurance Services (EGI US) and all its subsidiary companies, including American Colonial Insurance Company, a Florida domiciled insurance company and EGI Insurance Services, a managing general agency.
Commenting on the transaction, EGI CEO Steve Dobronyi said, "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."
Philo Smith & Co served as exclusive advisor and agent to EGI, while McKenna Long & Aldridge (MLA) offered legal counseling.
EGI said that it will remain accountable for the run-off of its discontinued operations in Texas.
Founded in 1997, EGI operates in the property and casualty insurance industry in Canada, the US and Europe, with specific focus on non-standard automobile insurance and other specialty general insurance products.