Two companies half-owned by The Co-operators are joining forces. Through the deal, EGI Investments Inc. (EGI) will become a wholly-owned subsidiary of Canadian Insurance Marketing Inc. (CIMI) to form one niche underwriter. Under the terms, former EGI shareholders now own about 35% of CIMI.EGI and The Co-operators each own half of non-standard auto insurer Echelon General Insurance Company. As well, The Co-operators shares equal parts ownership with CIMI in Trent Health Services Corp. and Ingle Life & Health Assurance Company (soon to be renamed Trent Health Insurance Company). These companies specialize in travel insurance and reinsurance underwriting.”The combined operations will pursue a coordinated strategy to exploit all possible synergies and economies of scale,” states a press release from Douglas E. McIntyre, chairman and CEO of CIMI. “The plan includes an expansion into selected new products in specialty property and casualty lines of business.”
Specialty insurers amalgamate