EGI Financial expands US operations

EGI Financial Holdings Inc. announced it has taken a US$20-million [approximately Cdn$19.54-million], non-revolving term loan with the Bank of Nova Scotia.
The loan will help EGI Financial reinsure niche and specialty line insurers underwriting business in the United States through its subsidiary CIM Reinsurance.
We anticipate this facility will provide us with the flexibility needed to support the planned expansion of our U.S. reinsurance business and to continue our profitable growth in Canada, Doug MacIntyre, president and CEO of EGI Financial, said in a statement.
If certain conditions are satisfied, the Scotiabank credit facility may be increased up to a limit of US$40 million [about Cdn$39.08 million], an EGI Financial release says.
In addition, EGI Financial announced the formation of its U.S.-based subsidiary, EGI Insurance Services Inc., and the subsequent appointment of James H. Cizek as the companys inaugural president and CEO.
EGI Insurance Services Inc. will employ a small group of experts in niche and specialty insurance lines, the release says. The company will perform initial due diligence in ongoing monitoring of potential reinsurance clients on behalf of its sister company CIM Re.
The financial results of EGI Insurance Services and CIM Re in 2008 will be combined and reported as EGI Financials international division segment.