EGI Financial Holdings said that it's US-based subsidiary, Echelon Insurance Company of America (EICA) has acquired all of the issued and outstanding shares of American Colonial Insurance Company (American Colonial).

According to EICA, the purchase price is equal to American Colonial’s statutory book value, net of its obligations for its remaining outstanding claims, with securities marked to market, plus $200,000 or around $4.6m in total.

In addition, Florida regulators have also approved the merging of American Colonial with EICA, with American Colonial continuing as surviving corporation. As a result, all of recently established operating infrastructure of EICA will be assumed by American Colonial.

James Cizek, CEO of EICA, said: “The acquisition of American Colonial, along with the recent approval of our Florida auto insurance rate filing are major steps in the advancement of the company’s strategies to underwrite non-standard automobile insurance in the southeastern US.

“We now have the critical platform and infrastructure to pursue organic growth, while continuing to seek acquisitions which meet the Company’s value criteria.”

American Colonial is a Florida-based property and casualty insurance company. In addition to Florida, it has licenses to transact private passenger automobile insurance in Georgia, Alabama and Louisiana.