Specialty insurers amalgamate

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.”