Co-operators Receives Approval to Sell 50% Interest in Echelon

Co-operators General Insurance Company has obtained regulatory approval to sell 50% of its interest in Echelon Insurance, a wholly-owned subsidiary catering to the higher risk, “non-standard” auto insurance market.

Under the terms of the sale agreement, EGI Investments Limited of Toronto is to acquire 50% ownership of Echelon and will be responsible for day-to-day management. EGI will now share representation with Co-operators on Echelon’s Board of Directors. Included among EGI senior managers are several former executives of Pafco Insurance Company.

Echelon earned revenue of approximately $36 million in 2000, and has total assets of more than $100 million.