PEI Travel Insurance News
Echelon Financial Holdings Inc. (EFH) and CAA Club Group (CAA) (an insurance group that provides road side assistance, travel, insurance services and many more) announced November 9, 2018, their agreement to sell EFH to CAA for $175 million. The announcement follows an extensive strategic review overseen by EFH’s Board of Directors committee. The Special Committee recommended to EFH Board of Directors that it is to the best interest of the company to sell to CAA.
The Chairman of EFH’s Board of Directors, Murray Wallace, said they are excited about the sale of EFH as it produces an attractive outcome to the shareholders and the continuation of employment for the staff. He added that CAA would enable EFH to attain the next level of service via its customers and brokers.
The president and CEO of CAA Club Group, Jay Woo, said that CAA Club Group’s Insurance product would expand due to the acquisition of EFH and would offer non-standard auto, commercial and property insurance.
The purchase does not completely include the other active subsidiaries of EFH. EFH still owns 75% interest in the Insurance Company of Prince Edward Island (“ICPEI”). ICPEI is a leader in providing personal and business insurance services. It sells these services through a network of 17 brokers in 68 offices throughout all of Canada’s three Maritime provinces.
EFH will collaborate in order to assist ICPEI to set up independent operations so as to ensure that the business continues. After closing the sale of the Business, it will support its broker partners to achieve these goals. EFH estimates that it had about $30 million in net tangible assets based on its reported balance sheet on June 30, 2018, plus the 75% interest in ICPEI which has an equity book value of about $10 million.
To learn more about Prince Edward Island travel insurance news click here.