EGI Financial Holdings has entered into a five-year extension and amendment to its existing distribution and services agreement with Co-operators General Insurance Company.
The Echelon Co-operators services agreement was originally entered between EGI, its wholly owned subsidiaries Echelon General Insurance Company and EGI Insurance Managers, and Co-operators, and subsequently amended.
Under the agreement, Co-operators provides distribution for Echelon’s non-standard auto policies through Co-operators’ insurance agents and also provides certain technical support services to Echelon in connection with the run-off of insurance portfolios that pre-date EGI’s ownership of Echelon. In addition, Co-operators collects premiums on behalf of Echelon for Echelon policies sold by insurance agents engaged by Co-operators.
The Echelon Co-operators services agreement has been extended to now expire on December 31, 2012, and may be automatically renewed thereafter for periods of one year each. Any party may terminate the agreement upon 180 days written notice to the other parties. Under the agreement, Echelon pays to Co-operators a fee of 11.5% of gross written premiums received for Co-operators’ agency-originated business placed with Echelon.
Douglas McIntyre, CEO of EGI, said: We are pleased to announce the extension of this important distribution agreement with Co-operators. We are pleased to announce the extension of this important distribution agreement with Co-operators.