TORONTO, August 6, 2015 – Echelon Financial Holdings Inc. (“EFH” or “the Company”) (TSX: EFH), which operates in the property and casualty insurance industry in Canada and Europe, today reported net income attributable to shareholders of $4.8 million, or $0.40 per diluted share, for the three months ended June 30, 2015.

Second Quarter 2015 Highlights

• Net operating income of $0.42 per share compared to $0.02 in the second quarter of 2014
• Underwriting income of $1.7 million for the quarter compared to underwriting loss of $3.3 million in the second quarter of last year
• Combined operating ratio of 97.8% compared to 105.3% in the second quarter of 2014
• A 36% increase in direct written premiums over the same period in 2014 to $138 million
• Total pre-tax loss on invested assets of $2.9 million in the quarter compared to pre-tax gain of $6.6 million in the second quarter of 2014
• A decrease in book value per share of 0.6% in the quarter to $16.00 per share. Excluding the impact of a shareholder dividend of $0.11, book value per share increased by $0.02.

“It was another quarter of strong underwriting results for the Company”, commented Steve Dobronyi, Chief Executive Officer, “with all major segments making a contribution. Personal Lines, which is the core of our Company, has recovered well from the slow start to the year, especially in Ontario and the Maritimes. Personal Lines has now delivered an underwriting profit in 17 of the past 19 quarters. Commercial Lines, which supplements our core business, continues to demonstrate consistency and has been profitable for 5 consecutive quarters. And the International segment continues to build on its impressive record of both growth and profitability. It wrote $74 million of premium in the quarter and has been profitable in 7 of the past 9 quarters, including 4 in a row.”

“These underwriting results have put us back on track to meet our planned goals for the year”, he continued. “We’re very pleased with the state of our Company and our position in the specialty insurance market. We have a deep and experienced management team, a diversified and profitable base of business, a solid balance sheet and a scalable insurance platform to facilitate future growth opportunities. We’re looking forward to the remainder of the year, as we invest further in our infrastructure and, at the same time, deliver attractive returns to our shareholders.”

Dividend

The Board of Directors declared a quarterly dividend of $0.11 per outstanding common share. The dividend is payable on October 1, 2015, to shareholders of record on September 9, 2015.

Financial Summary

(1) Net operating income is defined as net income excluding the impact of the change in discount rate and foreign exchange rates on unpaid claims, realized losses or gains on sale of investments, foreign exchange gain or loss on investments, unrealized fair value changes on Fair Value Through Profit or Loss (FVTPL) investments and one time, non-recurring charges.

(2) Net operating income is adjusted to that attributable to shareholders for per share calculation.

Second Quarter Review

Net operating income of $5.1 million or $0.42 per share was recorded in the quarter, compared to $0.3 million or $0.02 per share in the second quarter of 2014. The increase was primarily due to underwriting income of $1.7 million in the quarter compared to an underwriting loss of $3.3 million for the same period in 2014.

Personal Lines generated underwriting income of $1.8 million compared to $3.3 million in the same period last year due to slightly weaker performance in Ontario auto that was partially offset by strong performance in Atlantic Canada, particularly in Auto.

Commercial Lines generated underwriting income of $0.3 million compared to a $0.3 underwriting loss in the same period last year due to strong performance in Atlantic and Western Canada

The International division produced underwriting income of $1.4 million for the quarter compared to a loss of $5.4 million in the same period last year due to improved results in U.K. Auto that were negatively impacted in the second quarter of 2014 by adverse weather conditions. Warranty, Commercial Property and Accident & Sickness programs written in Scandinavia continue to perform strongly.

Direct written premiums increased by 36%, attributable primarily to the continued growth of the International division and the inclusion of premiums written by The Insurance Company of Prince Edward Island (ICPEI). Growth in the quarter in the International division can be primarily attributed to rate increases and strong renewals on the Company’s Irish Motor program that started writing business in the second quarter of 2013.

Investment income was $4.0 million compared to $5.5 million in the second quarter of 2014. Total pre-tax loss on invested assets was $2.9 million in the quarter compared to $6.6 million pre-tax gain in the second quarter of 2014. The Canadian preferred share portfolio continued to perform poorly due to negative market sentiment. The fixed income portfolio also performed weakly due to increasing bond yields in Canada and Europe. The fair value of Echelon’s investment portfolio, including finance receivables, was $532 million, down 1% from the fourth quarter of the prior year.

Operating expenses incurred in the second quarter of 2015 increased by 15% over the prior year, below the 23% increase in net earned premiums.

On a consolidated basis, a net favourable development of prior year claims of $2.6 million was recorded in the second quarter of 2015 compared to favourable development of $1.4 million in the same period in 2014.

Operating Results

(1)  Excluding head office overhead costs and impact of change in discount and foreign exchange rate on unpaid claims

(2)  Loss ratio excludes impact of change in discount and foreign exchange rate on unpaid claims

Six-Month Review

Net operating income of $7.1 million or $0.60 per share was recorded compared to $3.9 million or $0.33 per share for the same period in 2014. The increase was primarily due to higher underwriting income, specifically in the International division.

Direct written premiums increased by 26%, attributable primarily to growth in the International division and the inclusion of premiums written by ICPEI.

Investment income was $9.9 million compared to $11.6 million in the second quarter of 2014. Total pre-tax return on invested assets was $5.9 million compared to $15.9 million in the first half of 2014 driven by lower preferred share and fixed income returns. The fair value of Echelon’s investment portfolio, including finance receivables, was $532 million, down 1% from the fourth quarter of the prior year.

Operating expenses incurred in the first six months of 2015 increased by 13% over the prior year, below the 17% increase in net earned premiums.

On a consolidated basis, a net favourable development of prior year claims of $4.9 million was recorded in the six months ended June 30, 2015, compared to favourable development of $4.7 million in the same period in 2014.

Capital Management

The Minimum Capital Test (MCT) ratio of EFH’s Canadian subsidiary, Echelon Insurance, as at June 30, 2015, was 220%, which comfortably exceeds the supervisory regulatory capital level required by the Office of the Superintendent of Financial Institutions (OSFI). ICPEI’s MCT ratio of 261% was in excess of provincial supervisory targets.

In addition, the Company has approximately $23 million of excess deployable capital invested in liquid assets in the holding company. All regulated entities remain well-capitalized. In June 2015, the Company injected $5 million of capital into its European subsidiary to support its strong premium growth and strengthen its regulatory ratios.

For the six months ended June 30, 2015, total shareholders’ equity increased by $4.1 million to $187.8 million from December 31, 2014.

Full Financial Statements and Management’s Discussion and Analysis (MD&A) are available on SEDAR and on the Company’s web site at Echelon.

Non-IFRS Financial Measures

EFH uses International Financial Reporting Standards (IFRS) and certain non-IFRS measures to assess performance. Readers are cautioned that non-IFRS measures do not have a standardized meaning under IFRS and may not be comparable to similar measures used by other companies. EFH analyzes performance based on operating income and underwriting ratios such as combined, expense and loss ratios.

Forward-looking Information

This news release contains forward-looking information based on current expectations. This information includes, but is not limited to, statements about the operations, business, financial condition, priorities, targets, ongoing objectives, strategies and outlook of EFH for 2015 and subsequent periods.

This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a projection as reflected in the forward-looking information. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific. A variety of material factors, many of which are beyond EFH’s control, affect the operations, performance and results of and its business and could cause actual results to differ materially from the expectations expressed in any of this forward-looking information.

EFH does not undertake to update any forward-looking information. Additional information about the risks and uncertainties about Echelon’s business is provided in its disclosure materials, including its Annual Information Form and Management Discussion & Analysis, filed with the securities regulatory authorities in Canada, available at www.sedar.com.

Conference Call

A conference call for analysts and interested listeners will be held on Friday, August 7, 2015, at 11:00 a.m. (ET). The call-in numbers for participants are 647-427-7450 or toll free 1-888-231-8191, Conference ID 76681768. A live audio feed of the call will be available online through the Company’s website at icpeiholdings.ca, or directly at second quarter 2015 conference call.

A replay of the call will be available until August 14, 2015. To access the replay, call 416-849-0833, or toll free 1-855-859-2056, enter password 76681768.

About Echelon Insurance

Founded in 1998, Echelon operates in the property and casualty insurance industry in Canada and Europe, primarily focused on providing non-standard automobile insurance and other niche and specialty insurance solutions. The Company operates and distributes insurance products through Echelon Insurance, The Insurance Company of Prince Edward Island and Qudos Insurance. It trades on the Toronto Stock Exchange under the symbol EFH. For more information, visit icpeiholdings.ca.

Company Contact Information

Kathy Shulman

Investor Relations Manager

Echelon Financial Holdings Inc.

Telephone: 905-214-7880

Email: ir@icpeiholdings.ca

ECHELON FINANCIAL HOLDINGS INC. – Reports

Settlement of Litigation and Special Distribution to Shareholders

Toronto, August 26, 2020– Echelon Financial Holdings Inc. (“EFH” or the “Company”) (TSX:EFH) is announcing the settlement of outstanding litigation and the declaration of a special dividend.

In May 2019, EFH sold Echelon Insurance, its major asset, to CAA Club Group for net proceeds (after adjustments and expenses) of approximately C$170 million.

In June 2019, the EFH Board of Directors declared and paid a special distribution to shareholders of $8.80 per share, or approximately $106 million in the aggregate.

As previously disclosed, in March 2017 EFH sold its European operations, QIC Holdings A/S and Qudos Insurance A/S.  Subsequently, the purchaser commenced litigation in Denmark alleging that the Company had misrepresented the condition of the European operations and claiming significant damages of about C$70 million.  The Company has denied this claim and has been defending the litigation.

The Board has concluded that it is in the best interests of EFH and the shareholders to settle the litigation for a reasonable amount.  The parties have now agreed to a settlement upon payment by EFH of C$7 million.

Accordingly, the Directors have declared a special cash dividend in the amount of C$5.60 per share, for an aggregate of approximately C$67 million. The record date for shareholders entitled to receive the dividend will be September 4, 2020, and the payment date will be September 15, 2020.

The Toronto Stock Exchange (the “TSX”) has advised EFH that “Due Bills” are to be used in connection with the trading of the common shares through the facilities of the TSX for the period from and including September  3,  until the close of trading on September 15, 2020 (the “Due Bill Period”).  A Due Bill is defined in the TSX Company Manual as an instrument used to evidence the transfer of title to any dividend, distribution, interest, security or right to a listed security contracted for, or evidencing, the obligation of a seller to deliver such dividend, distribution, interest, security or right to a subsequent purchaser.

As a result, buyers of common shares during the Due Bill Period will receive the special Dividend, provided they continue to be holders of the applicable common share on the payment date.

The common shares will commence trading on an ex-dividend basis (i.e. without an attached Due Bill entitlement to the dividend) commencing at the opening of trading on September 16, 2020. The Due Bill redemption date will be September 17, 2020 (“Due Bill Redemption Date”).

As a result of the common shares trading on a Due Bill basis during the Due Bill Period, those shareholders entitled to be paid the special dividend owing on the Due Bills should expect to receive that payment by the Due Bill Redemption Date.  Shareholders prior to the Due Bill Period who do not purchase or sell common shares during the Due Bill Period will not have their applicable special dividend impacted by the Due Bill process.

Following the payment of this special dividend, EFH will continue to focus on its 75% ownership of the Insurance Company of Prince Edward Island which has recently been licensed in Quebec for all lines of business. EFH will have sufficient resources to meet its liquidity needs with roughly $2 million in cash, an additional $1 million in working capital, no meaningful long-term debt, and  its sole  investment in ICPEI which had a proportionate book value of roughly $13 million at the end of Q2, 2020.  The pro forma book value of EFH following payment of the special dividend will be approximately $1.39 per share, or an aggregate of $16.6 million. EFH intends to seek a listing on the Toronto Venture Exchange and to seek to delist from the Toronto Stock Exchange.

The annual general meeting of the shareholders of EFH had previously been scheduled for October 5, 2020. The Company has now rescheduled the AGM for October 27, 2020.

About Echelon Financial Holdings Inc.

Founded in 1998, Echelon Financial Holdings Inc. operates in the property and casualty insurance industry in Canada, providing personal and commercial lines insurance exclusively through the broker channel.  The Company distributes insurance products through The Insurance Company of Prince Edward Island.  It trades on the Toronto Stock Exchange under the symbol EFH.  For more information, please visit icpeiholdings.ca

Forward-looking Information

This news release contains forward-looking information based on current expectations. This information includes, but is not limited to, statements about the operations, business, financial condition, priorities, targets, ongoing objectives, strategies, litigation outcomes and outlook of EFH. These statements, which appear in this press release generally can be identified by the use of forward-looking words such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “plan”, “would”, “should”, “could”, “trend”, “predict”, “likely”, “potential” or “continue” or the negative thereof and similar variations.

This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a projection as reflected in the forward-looking information. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific. A variety of material factors, many of which are beyond EFH’s control, affect the operations, performance and results of its business and could cause actual results to differ materially from the expectations expressed in any of this forward-looking information.

ICPEI Holdings Inc. Reports First Quarter 2022 Results

Toronto, May 18, 2022 – ICPEI Holdings Inc. (the “Company”) (TSXV: ICPH) which operates in the property and casualty insurance industry in Canada, today reported net income of $1.7 million for the quarter ended March 31, 2022 and $1.1 million in the same period of 2021.

Serge Lavoie, Chief Executive Officer, commented “We continue to build on our impressive growth last year with premiums increasing by 54% during the quarter compared to the same period last year and a combined ratio of 88.4% for Q1 2022.” ICPEI was granted licenses to write commercial business in Newfoundland and Labrador in January and Alberta in April 2022.

Highlights

Direct premiums written of $17.5 million in this quarter represent a 54% growth over the same period in 2021. Personal Lines increased by 47% and Commercial Lines increased by 60% in this period when compared to the same period last year. The growth is in line with our strategy to expand geographically in Quebec and Ontario and the commercial line of business.

• Underwriting income of $1.9 million in this quarter increased by 80% compared to the same period in 2021. Our growth in commercial business is contributing the majority of our underwriting income.
• Combined ratio improved from 90.4% in the first quarter of 2021 to 88.4% in this quarter.
• EPS increased by 83% to $0.11 in this quarter when compared to the same period in 2021.
• Issued 440,415 common shares of the Company through a non-brokered Private Placement for $0.85 million.
• Closing book value per share of $1.88 compared to $1.84 at the end of 2021. The EPS increased by $0.11 in the quarter, however due to unrealized losses in the investments reflected through Other Comprehensive Income resulted in the net change of $0.04 per share.

• Sum of Operating expenses and Corporate expense equal Operating Costs on Consolidated Statements of Income and Comprehensive Income.
• Underwriting income is defined as net earned premiums less net claims incurred, net acquisition costs, operating expenses, and excludes any impact of change in discount rate on claims and corporate expenses.
• Book value per share is calculated by dividing shareholder’s equity by the number of common shares outstanding.
• Return on Equity is twelve months rolling net income attributable to shareholders on continued operations divided by average shareholder’s equity.

Underwriting Results

Capital Management

The Minimum Capital Test (“MCT”) ratio of ICPH’s subsidiary, The Insurance Company of Prince Edward Island (ICPEI) as at March 31, 2022 was 332%, which comfortably exceeds the supervisory target of 150%.

COVID-19 Pandemic Update

Currently, COVID-19 did not have any significant impact on the premiums, collections, investments or other operational activities of the Company, but the impact remains uncertain as the pandemic continues to evolve.

Non-IFRS Financial Measures

The Company uses both IFRS and certain non-IFRS measures to assess performance. Securities regulators require that companies caution readers about non-IFRS measures that do not have a standardized meaning under IFRS and are unlikely to be comparable to similar measures used by other companies. The Company analyzes performance based on underwriting income and underwriting ratios such as combined, expense and loss ratios, which are non-IFRS measures. Underwriting income is defined as net earned premiums less net claims incurred, net acquisition costs, operating expenses, and excludes any impact of change in discount rate on claims and corporate expenses. Loss ratio is net claims incurred divided by net earned premiums. Expense ratio is net acquisition costs plus operating expenses divided by net earned premiums. Combined ratio is the sum of loss ratio and expense ratio. Return on Equity (“ROE”) is based on trailing twelve months net income attributable to shareholders on continued operations divided by average total equity. Book value per share (“BVPS”) is calculated by dividing total equity by the number of common shares outstanding.

Forward-looking Information

This news release contains forward-looking information based on current expectations. This information includes, but is not limited to, statements about the operations, business, financial condition, priorities, targets, ongoing objectives, strategies, litigation outcomes and outlook of the Company. These statements, which appear in this press release generally can be identified by the use of forward-looking words such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “plan”, “would”, “should”, “could”, “trend”, “predict”, “likely”, “potential” or “continue” or the negative thereof and similar variations.

This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a projection as reflected in the forward-looking information. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific. A variety of material factors, many of which are beyond the Company’s control, affect the operations, performance and results of its business and could cause actual results to differ materially from the expectations expressed in any of this forward-looking information.

About ICPEI Holdings Inc.

Founded in 1998, ICPEI Holdings Inc. operates in the Canadian property and casualty insurance industry through its wholly owned subsidiary The Insurance Company of Prince Edward Island (ICPEI). ICPEI provides commercial and personal lines of insurance products exclusively through the broker channel.

The Company’s name was changed from EFH Holdings Inc. to ICPEI Holdings Inc. after receiving approval from shareholders on July 15, 2021. It trades on the TSX Venture Exchange under the symbol ICPH effective August 20, 2021 and prior to December 23, 2020 it traded on the Toronto Stock Exchange.

 Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For more information, please visit www.icpeiholdings.ca

Investor Relations, 905-602-2150, ir@icpeiholdings.ca

TORONTO, October 6, 2015 – Echelon Financial Holdings Inc. (“EFH” or “the Company”) (TSX: EFH) announced today acceptance by the Toronto Stock Exchange (“TSX”) of the Company’s notice of intention to make a normal course issuer bid.  Pursuant to the bid, EFH proposes to purchase through the facilities of TSX and alternative trading systems, from time to time over the next 12 months, if considered advisable, up to an aggregate of 619,265 common shares of EFH, representing approximately 10% of its public float, being 6,192,655 common shares as of September 23, 2015. As of September 23, EFH had 11,740,486 issued and outstanding common shares. Purchases may commence through the TSX on October 8, 2015 and will conclude on the earlier of the date on which purchases under the bid have been completed and October 7, 2016.  Daily purchases will be limited to 2,598 common shares, other than block purchase exceptions. The previous EFH normal course issuer bid (for the period August 21, 2014 to August 20, 2015) resulted in 302,900 shares repurchased at a volume-weighted average price of $13.40 per share, for a total of approximately $0.7 million. EFH believes that, from time to time, the market price of the common shares may not reflect their underlying value and, therefore, that the bid is in the best interests of the Company and is a desirable use of corporate funds.

All common shares purchased by EFH pursuant to the bid will be cancelled.  The program does not require the Company to repurchase a minimum number of shares, and it may be modified, suspended or terminated at any time without prior notice.

About Echelon Insurance

Founded in 1998, EFH operates in the property and casualty insurance industry in Canada and Europe, primarily focused on providing non-standard automobile insurance and other niche and specialty insurance solutions.  The Company operates and distributes insurance products through Echelon Insurance, The Insurance Company of Prince Edward Island and Qudos Insurance.  It trades on the Toronto Stock Exchange under the symbol EFH.  For more information, visit icpeiholdings.ca.

Forward-looking Information

This news release contains forward-looking information based on current expectations. This information includes, but is not limited to, statements about the normal course issuer bid and EFH’s intentions for the bid.

This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a projection as reflected in the forward-looking information. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific. A variety of material factors, many of which are beyond EFH’s control, affect the operations, performance and results of the Company and its business and could cause actual results to differ materially from the expectations expressed in any of this forward-looking information, including, but not limited to, the inability of the Company to purchase and cancel common shares pursuant to the normal course issuer bid and market conditions that are not conducive to the bid.

EFH does not undertake to update any forward-looking information, except as required by law. Additional information about the risks and uncertainties about EFH’s business is provided in its disclosure materials, including its Annual Information Form and Management Discussion & Analysis, filed with the securities regulatory authorities in Canada, available at www.sedar.com.

Company Contact Information

Kathy Shulman
Investor Relations Manager
Echelon Financial Holdings Inc.
Telephone: 905-214-7880
Email: ir@icpeiholdings.ca

TORONTO, November 2, 2016 – Echelon Financial Holdings Inc. (“EFH” or “the Company”) (TSX: EFH), which operates in the property and casualty insurance industry in Canada and Europe, today reported net income attributable to shareholders on continued operations of $1.2 million, or $0.10 per diluted share, for the three months ended September 30, 2016.

All operating results below refer to continued operations.

Third Quarter 2016 Highlights

• Net operating income on continued operations of $0.13 per share compared to an income of $0.30 per share in the third quarter of 2015.
• A Canadian combined operating ratio of 97% compared to 92% in the third quarter of 2015, primarily due to strong commercial and motorcycle results, offset by weaker Ontario auto results.
• A 14% increase in net written premiums on continued operations over the same period in 2015 to $52.9 million, primarily driven by additional new products in personal lines and commercial lines premiums across Canada.
• Total pre-tax gain on invested assets of $3.7 million in the quarter compared to a pre-tax loss of $5.5 million in the third quarter of 2015, primarily due to stronger performance of the preferred share portfolio.
• Closing book value per share of $12.90.
• A change of control application has been submitted to the Danish Financial Services Authority for approval of the divestiture of the Company’s European operations.

“We continue to execute on our strategy outlined earlier in the year and have successfully launched our Surety and Commercial Auto products during the quarter. We have also made significant progress on the divestiture process of the European operations, which is now pending approval from the Danish regulatory authority” commented Serge Lavoie, Chief Executive Officer.

“I am pleased with the results for the third quarter, especially the Commercial Lines segment. Although Personal Lines was negatively impacted by an increase in claims frequency in Ontario auto, the results were offset by strong investment performance” he continued.  “We have a strong balance sheet that will provide us with a solid launching pad for 2017 and beyond”.

Financial Summary on Continued Operations

(1) Net operating income is defined as underwriting income plus interest and dividend income, net of tax, excluding catastrophe losses.

(2) Net operating income is adjusted to that attributable to shareholders for per share calculation.

Third Quarter Review

Net operating income of $1.6 million or $0.13 per share was recorded in the quarter, compared to an income of $3.6 million or $0.30 per share in the third quarter of 2015.  The decrease was due to an underwriting loss of $0.4 million compared to underwriting income of $1.4 million for the same period in 2015.

Personal Lines generated underwriting income of $0.2 million compared to an underwriting income of $1.9 million in the same period last year primarily due to weaker performance than the comparable period in Ontario Auto.

Commercial Lines generated an underwriting income of $1.3 million compared to $2.0 million underwriting income in the same period last year primarily due to expenses incurred in launching new lines of business in surety and commercial auto.  The Company continues to focus on growing the Canadian business through product expansion, technology investments and strong broker relationships.

Net written premiums increased by 14% to $52.9 million, primarily due to additional new products in personal lines and commercial lines across Canada.

Investment income was $4.5 million compared to a loss of $2.6 million in the third quarter of 2015 due to improved results on the Canadian preferred shares portfolio.  There was a total pre-tax return on invested assets of $3.7 million in the quarter compared to a pre-tax loss of $5.5 million in the third quarter of 2015, primarily due to stronger performance of the preferred share portfolio. The fair value of Echelon’s investment portfolio, including finance receivables, was $411 million.

Operating expenses increased by $0.4 million or 5%, to $7.5 million in the third quarter of 2016 compared to $7.1 million in the comparative quarter primarily due to increased hiring costs for the launches of the new surety and commercial auto lines.

On a consolidated basis, a net favourable development of prior year claims of $4.5 million was recorded in the third quarter of 2016 compared to favourable development of $6.0 million in the same period in 2015.

Operating Results

(1) Excluding head office overhead costs

Nine-Month Review

Net operating income of $5.5 million or $0.46 per share was recorded compared to $5.2 million or $0.44 per share for the same period in 2015.  The increase was due primarily to improved Personal Lines results in the year.

Personal Lines generated underwriting income of $0.4 million compared to break even underwriting income in the same period last year primarily due to better winter driving conditions experienced in Ontario and Atlantic auto in the first quarter of 2016.

Commercial Lines generated an underwriting income of $2.1 million compared to $2.7 million in the same period last year, primarily due to expenses incurred in launching new product lines in surety and commercial auto.

Net written premiums increased by 8%, attributable primarily due to growth in personal lines products written in Ontario and Quebec in addition to the strong launch of new commercial auto and surety product lines.

Investment income was $13.3 million compared to a $6.3 million in 2015, primarily due to strong performance of the preferred share portfolio compared to the prior period.  Total pre-tax return on invested assets was $8.2 million compared to $0.2 million in the same period of 2015.

Operating expenses incurred in 2016 increased by 10% over the prior year to $22.0 million primarily due to increased hiring costs for the launch of the new surety and commercial auto lines.

On a consolidated basis, a net favourable development of prior year claims of $13.8 million was recorded in the nine months ended September 30, 2016 compared to favourable development of $12.0 million in the same period in 2015.

Capital Management

The Minimum Capital Test (MCT) ratio of EFH’s Canadian subsidiary, Echelon Insurance, as at September 30, 2016, was 228%, which exceeds the supervisory regulatory capital level required by the Office of the Superintendent of Financial Institutions (OSFI). ICPEI’s MCT ratio of 331% was in excess of provincial supervisory targets. The Company’s European subsidiary, Qudos, had a Danish Financial Services Authority (DKFSA) Individual Solvency ratio of 110%, in excess of the supervisory target.

The Company has approximately $5 million of excess deployable capital invested in liquid assets in the holding company.  All regulated entities remain well-capitalized.

For the nine months ended September 30, 2016, total shareholders’ equity decreased by $33.4 million to $151.3 million from December 31, 2015 due to discontinued loss of $35.3 million, including impairment of $21.0 million.

Full Financial Statements and Management’s Discussion and Analysis (MD&A) are available on SEDAR and on the Company’s web site at Echelon.

Non-IFRS Financial Measures

EFH uses International Financial Reporting Standards (IFRS) and certain non-IFRS measures to assess performance.  Readers are cautioned that non-IFRS measures do not have a standardized meaning under IFRS and may not be comparable to similar measures used by other companies.  EFH analyzes performance based on operating income and underwriting ratios such as combined, expense and loss ratios.

Forward-looking Information

This news release contains forward-looking information based on current expectations.  This information includes, but is not limited to, statements about the operations, business, financial condition, priorities, targets, ongoing objectives, strategies and outlook of EFH for 2016 and subsequent periods.

This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a projection as reflected in the forward-looking information.  By its nature, this information is subject to inherent risks and uncertainties that may be general or specific.  A variety of material factors, many of which are beyond EFH’s control, affect the operations, performance and results of and its business and could cause actual results to differ materially from the expectations expressed in any of this forward-looking information.

EFH does not undertake to update any forward-looking information.  Additional information about the risks and uncertainties about Echelon’s business is provided in its disclosure materials, including its Annual Information Form and Management Discussion & Analysis, filed with the securities regulatory authorities in Canada, available at www.sedar.com.

Conference Call

A conference call for analysts and interested listeners will be held on Friday, November 4, 2016, at 11:00 a.m. (ET).  The call-in numbers for participants are 647-427-7450 or toll free 1-888-231-8191, Conference ID 95997439.  A live audio feed of the call will be available online through the Company’s website at icpeiholdings.ca, or directly at conference call.

A replay of the call will be available until November 11, 2016.  To access the replay, call 416-849-0833, or toll free 1-855-859-2056, password 95997439.  An archive will be available on our website following the event.

About Echelon Financial Holdings Inc.

Founded in 1998, Echelon operates in the property and casualty insurance industry in Canada and Europe, primarily focusing on non-standard automobile insurance and other specialty P&C insurance products. The Company operates and distributes insurance products through Echelon Insurance, The Insurance Company of Prince Edward Island and Qudos Insurance. It trades on the Toronto Stock Exchange under the symbol EFH. For more information, please visit icpeiholdings.ca.

Company contact information: Kathy Shulman, Manager, Investor Relations  905-214-7880  ir@icpeiholdings.ca

TORONTO, Feb. 15, 2018 /CNW/ – Echelon Financial Holdings Inc. (“EFH” or “the Company”) (TSX: EFH), which operates in the property and casualty insurance industry in Canada, today reported net loss attributable to shareholders on continued operations of $5.0 million, or $0.42 per diluted share, for the three months ended December 31, 2017.

TORONTO, May 14, 2019 /CNW/ – Echelon Financial Holdings Inc. (“EFH” or “the Company”) (TSX: EFH), which operates in the property and casualty insurance industry in Canada, today reported a net loss attributable to shareholders of $9.1 million, or $0.76 per diluted share, for the three months ended March 31, 2019. Excluding costs related to the sale of Echelon Insurance and the unregulated warranty business of Echelon Financial Holdings Inc., the Company reported a net loss attributable to shareholders of $6.0 million or $0.50 per diluted share.

Discontinued Operations

Agreement to sell Echelon Insurance

On November 9, 2018 the Company entered into a definitive agreement to sell Echelon Insurance and its unregulated warranty business (“Discontinued Canadian operations”). The agreement was approved by the Company’s shareholders on January 23, 2019 at a special shareholders meeting, and is now subject to regulatory approvals. The Company anticipates that these approvals will be received during the second quarter of 2019. The detailed terms and conditions of the definitive agreement, including the potential impact of the sale are disclosed in greater detail in EFH’s recent SEDAR filings.

Discontinued European Operations

On August 4, 2016, Echelon entered into a definitive stock purchase agreement to sell its European insurance subsidiary to New Nordic Odin Guernsey Limited (NNGL), subject to regulatory approval. On February 28, 2017, regulatory approval was received from the Danish Financial Supervisory Authority, which completed the necessary approvals required for the sale. The Company completed the sale on March 7, 2017, and retains no residual insurance risk or other financial risk, other than credit risk associated with the loan receivable from the sale. The loan was repaid on June 29, 2018.

First Quarter 2019 Highlights

• Net operating loss of $0.36 per share compared to an income of $0.29 per share in the first quarter of 2018.
• A combined operating ratio of 109% compared to 95% in the first quarter of 2018.
• A 25% increase in direct written premiums over the same period in 2018 to $98.9 million as a result of organic growth in Personal and Commercial Lines nationally.
• A pre-tax gain on invested assets of $7.5 million in the quarter compared to $0.9 million in the prior year quarter, positively impacted by lower short-term bond yields resulting in better performance of the Fixed Income and Preferred Share portfolio.
• Closing book value per share of $11.74, a decrease of $0.47 from the fourth quarter of 2018. Costs related to the sale of the Discontinued Canadian operations reduced the book value per share by $0.26.

“Echelon reported a combined operating ratio of 109% for the first quarter of 2019, compared to 95% for 2018,” commented Serge Lavoie, Chief Executive Officer. “These results were driven by our Personal and Commercial Automobile lines of business in Ontario and Quebec, which were negatively impacted by extended winter weather conditions.”

“We continue to work towards the close of the sale of Echelon Insurance and EFH’s unregulated warranty business to CAA Club Group, and remain confident that this transaction will close during the second quarter.” he concluded.

Financial Summary on Continued Operations

^{(1) Net operating income is defined as underwriting income plus interest and dividend income, net of tax, excluding catastrophic losses.
(2) Net operating income is adjusted to that attributable to shareholders for per share calculation.}
First Quarter Review

The Company reported a net operating loss of $4.4 million or $0.36 per share in the quarter, compared to income of $3.5 million or $0.29 per share in the first quarter of 2018, a decrease of 224%.

Direct written premiums increased by 25% to $98.9 million. The increase in premiums was driven by continued organic growth in Ontario Personal Auto, supplemented by rate increases in both Commercial and Personal Lines.

Personal Lines generated an underwriting loss of $5.1 million, compared to an underwriting income of $2.0 million in the same period last year, a result driven by poor automobile results in Ontario and Quebec.

Commercial Lines recorded an underwriting loss of $2.0 million, compared to an underwriting income of $1.2 million in the same period last year, due to weaker warranty and surety results.

The Company’s expense ratio decreased over the prior period by 3.4%, attributable to operational efficiencies realized as a result of the Passport System rollout and reduced salary expense ratio from increased scale.

Investment income was $3.7 million, compared to $2.0 million in the first quarter of 2018. The pre-tax gain on invested assets was $7.5 million in the quarter, compared to $0.9 million in the first quarter of 2018. The fair value of Echelon’s investment portfolio, including finance receivables, was $536 million.

Net adverse development on prior year claims of $6.6 million was recorded in the first quarter of 2019, compared to favourable development of $3.6 million in the same period in 2018.

Operating Results

^{(1) Excluding head office overhead costs.}

Capital Management

All related entities remain well capitalized. The Minimum Capital Test (MCT) ratio of EFH’s subsidiary, Echelon Insurance, as at March 31, 2019, was 215%, which comfortably exceeds the supervisory regulatory capital level required by the Office of the Superintendent of Financial Institutions (OSFI). ICPEI’s MCT ratio of 407% was also in excess of provincial supervisory targets.

For the period ended March 31, 2019, total shareholders’ equity decreased by $5.2 million to $140.4 million from December 31, 2018.

As of March 31, 2019, EFH has approximately $13.5 million of net liquid assets and will receive proceeds of $175 million from the sale of Echelon Insurance to CAA. Additionally, EFH holds 75% of ICPEI with proportional shareholder’s equity of $12 million.

Full Financial Statements and Management’s Discussion and Analysis (MD&A) are available on SEDAR and on the Company’s web site at echeloninsurance.ca.

Non-IFRS Financial Measures

EFH uses International Financial Reporting Standards (IFRS) and certain non-IFRS measures to assess performance.  Readers are cautioned that non-IFRS measures do not have a standardized meaning under IFRS and may not be comparable to similar measures used by other companies. EFH analyzes performance based on operating income and underwriting ratios such as combined, expense and loss ratios.

Forward-looking Information

This news release contains forward-looking information based on current expectations. This information includes, but is not limited to, statements about the operations, business, financial condition, priorities, targets, ongoing objectives, strategies, litigation outcomes and outlook of EFH for 2019 and subsequent periods.

This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a projection as reflected in the forward-looking information. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific. A variety of material factors, many of which are beyond EFH’s control, affect the operations, performance and results of its business and could cause actual results to differ materially from the expectations expressed in any of this forward-looking information.

EFH does not undertake to update any forward-looking information. Additional information about the risks and uncertainties about Echelon’s business is provided in its disclosure materials, including its Annual Information Form and Management Discussion & Analysis, filed with the securities regulatory authorities in Canada, available at www.sedar.com.

About Echelon Financial Holdings Inc.

Founded in 1998, Echelon Financial Holdings Inc. operates in the property and casualty insurance industry in Canada, providing personal and commercial lines insurance exclusively through the broker channel. The Company distributes insurance products through Echelon Insurance and The Insurance Company of Prince Edward Island. It trades on the Toronto Stock Exchange under the symbol EFH. For more information, please visit echeloninsurance.ca.

Company contact information: Jennifer Kew, Investor Relations, 905-214-7880, ir@echeloninsurance.ca

Toronto, October 23, 2020 – Echelon Financial Holdings Inc. (TSX: EFH) (“EFH” or the “Company”) announces that due to a variety of circumstances including COVID-19, it intends to delay its annual and special meeting of shareholders (the “Meeting”) from October 27, 2020 to December 11, 2020. The Meeting will be held in a virtual only meeting format.

The record date for the purposes of determining those shareholders entitled to receive notice of and to vote at, the Meeting has been set as November 10, 2020.  Detailed information on how to participate in the virtual Meeting will be included in the Company’s Management Information Circular and notice of meeting (the “Meeting Materials”) expected to be mailed to shareholders and filed following mailing thereof in November 2020.

In addition, the Company announces that it has received the resignations of Andrew Pastor and Lee Matheson as members of the board of directors, which resignations have been accepted by the board of directors of the Company.  The board of directors of the Company thanks Messrs. Pastor and Matheson for their services as directors of the Company and wishes them prosperity in their future endeavors.

Forward-looking Information

This news release contains forward-looking information based on current expectations. This information

includes, but is not limited to, statements about the timing of the Company’s annual and special general meeting of shareholders and the preparation of the accompanying information circular. These statements, which appear in this press release generally can be identified by the use of forward-looking words such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “plan”, “would”, “should”, “could”, “trend”, “predict”, “likely”, “potential” or “continue” or the negative thereof and similar variations, and include the proposed date of the Meeting, the proposed record date, the format of the Meeting and the date of filing and content of the Meeting Materials.

This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a projection as reflected in the forward-looking information. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific. A variety of material factors, many of which are beyond EFH’s control, affect the operations, performance and results of its business and could cause actual results to differ materially from the expectations expressed in any of this forward-looking information.

About Echelon Financial Holdings Inc.

Founded in 1998, Echelon Financial Holdings Inc. operates in the property and casualty insurance industry in Canada, providing personal and commercial lines insurance exclusively through the broker channel. The Company distributes insurance products through The Insurance Company of Prince Edward Island. It trades on the Toronto Stock Exchange under the symbol EFH.

For more information, please visit www.icpeiholdings.ca

Investor Relations, 905-602-2150, ir@icpeiholdings.ca

ICPEI Holdings Inc. Reports Second Quarter 2022 Results

Toronto, August 17, 2022 – ICPEI Holdings Inc. (the “Company”) (TSXV: ICPH) which operates in the property and casualty insurance industry in Canada, today reported net income of $0.9 million for the quarter ended June 30, 2022.

Serge Lavoie, Chief Executive Officer, commented “We are executing on our growth strategy and continue our impressive growth this quarter with premiums increasing by 72% during the quarter compared to the same period last year and a combined ratio of 93.8% for Q2 2022.”

Highlights

• Premiums written of $31.2 million in this quarter represent a 72% growth over the same period in 2021. Personal Lines increased by 45% and Commercial Lines increased by 106% in this period when compared to the same period last year.
• ICPEI was granted a license to write commercial business in Alberta in April 2022.
• The business mix at the end of the second quarter of 2022 is Commercial Lines of 53% and Personal Lines 47% compared to Commercial Lines of 46% and Personal Lines 54% in the same period last year. The growth is in line with our strategy to expand geographically in Quebec and Ontario and the commercial line of business.
• A Combined ratio of 93.8% resulting in an underwriting income of $1.2 million. The higher combined ratio compared to 81.2% in the same period last year was the result of higher claim frequency in the personal line.
• Investment income recorded a loss of $0.2 million in the quarter compared to an income of $0.6 million in the same period last year. Majority of our investment is in fixed income and is marked to market. With rapidly rising interest rate, valuation dropped. On the positive side, the expected yield in our investment portfolio has increased from 3.15% to 4.04% in the quarter.
• The book value per share was increased by $0.06 to $1.94 from EPS in the quarter. Due to rapidly increasing interest rate environment, market value of our investment decreased and we recorded unrealized losses in Other Comprehensive Income that decreased the book value per share by $0.06. As a result, closing book value per share of $1.88 remained the same at end of last quarter.

• Sum of Operating expenses and Corporate expense equal Operating Costs on Consolidated Statements of Income and Comprehensive Income.
• Underwriting income is defined as net earned premiums less net claims incurred, net acquisition costs, operating expenses, and excludes any impact of change in discount rate on claims and corporate expenses.
• Book value per share is calculated by dividing shareholder’s equity by the number of common shares outstanding.
• Return on Equity is twelve months rolling net income attributable to shareholders on continued operations divided by average shareholder’s equity.

Underwriting Results:

Capital Management

The Minimum Capital Test (“MCT”) ratio of ICPH’s subsidiary, The Insurance Company of Prince Edward Island (ICPEI) as at June 30, 2022 was 296%, which comfortably exceeds the supervisory target of 150%.

COVID-19 Pandemic Update

Currently, COVID-19 did not have any significant impact on the premiums, collections, investments or other operational activities of the Company, but the impact remains uncertain as the pandemic continues to evolve.

Non-IFRS Financial Measures

The Company uses both IFRS and certain non-IFRS measures to assess performance. Securities regulators require that companies caution readers about non-IFRS measures that do not have a standardized meaning under IFRS and are unlikely to be comparable to similar measures used by other companies. The Company analyzes performance based on underwriting income and underwriting ratios such as combined, expense and loss ratios, which are non-IFRS measures. Underwriting income is defined as net earned premiums less net claims incurred, net acquisition costs, operating expenses, and excludes any impact of change in discount rate on claims and corporate expenses. Loss ratio is net claims incurred divided by net earned premiums. Expense ratio is net acquisition costs plus operating expenses divided by net earned premiums. Combined ratio is the sum of loss ratio and expense ratio. Return on Equity (“ROE”) is based on trailing twelve months net income attributable to shareholders on continued operations divided by average total equity. Book value per share (“BVPS”) is calculated by dividing total equity by the number of common shares outstanding

Forward-looking Information

This news release contains forward-looking information based on current expectations. This information includes, but is not limited to, statements about the operations, business, financial condition, priorities, targets, ongoing objectives, strategies, litigation outcomes and outlook of the Company. These statements, which appear in this press release generally can be identified by the use of forward-looking words such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “plan”, “would”, “should”, “could”, “trend”, “predict”, “likely”, “potential” or “continue” or the negative thereof and similar variations.

This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a projection as reflected in the forward-looking information. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific. A variety of material factors, many of which are beyond the Company’s control, affect the operations, performance and results of its business and could cause actual results to differ materially from the expectations expressed in any of this forward-looking information.

About ICPEI Holdings Inc.

Founded in 1998, ICPEI Holdings Inc. operates in the Canadian property and casualty insurance industry through its wholly owned subsidiary The Insurance Company of Prince Edward Island (ICPEI). ICPEI provides commercial and personal lines of insurance products exclusively through the broker channel.

The Company’s name was changed from EFH Holdings Inc. to ICPEI Holdings Inc. after receiving approval from shareholders on July 15, 2021. It trades on the TSX Venture Exchange under the symbol ICPH effective August 20, 2021 and prior to December 23, 2020 it traded on the Toronto Stock Exchange.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in

policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this

release.

For more information, please visit www.icpeiholdings.ca

Investor Relations, 905-602-2150, ir@icpeiholdings.ca

TORONTO, November 5, 2015 – Echelon Financial Holdings Inc. (“Echelon Insurance” or the “Company”) (TSX: EFH) today provided an update on its continued activity to maintain its best-of-class governance policies.  Echelon places considerable emphasis on governance and, in recent years, has implemented numerous best practices in the areas of compensation, independent assessments, performance evaluations, board renewal and diversity.

Most recently, an independent external review of practices has led to several enhancements, including a more thorough director recruitment process.  To that end, Echelon is looking to deepen the collective skills and experiences of its Board of Directors through the addition of new directors.  The Company expects two or more appointments to be made on an interim basis prior to its next annual meeting in May 2016.

Echelon’s policy is to recruit and retain the most qualified persons to serve on the Board and within the Company, ensuring a diverse balance of skills, experience and personal attributes.  Gender diversity is an important criterion to be considered in the selection process.  Information on Echelon’s policy on diversity and representation of women on its Board and in its executive officer positions is included in its third quarter, 2015, management discussion and analysis, which has been filed on SEDAR.  The Diversity Policy commits the Company to actively recruiting and advancing women into Board and executive management positions.  Echelon has not adopted specific targets for the level of representation of women.  Currently 25% of directors and 17% of executive officers of the Company and its subsidiaries are women.

About Echelon Insurance:
Founded in 1998, Echelon operates in the property and casualty insurance industry in Canada and Europe, primarily focused on providing non-standard automobile insurance and other niche and specialty insurance solutions. The Company operates and distributes insurance products through Echelon Insurance, The Insurance Company of Prince Edward Island and Qudos Insurance.  It trades on the Toronto Stock Exchange under the symbol EFH.  For more information, visit icpeiholdings.ca.

Contact information:  Kathy Shulman, Manager, Investor Relations; 905-214-7880; ir@icpeiholdings.ca; www.icpeiholdings.ca

Toronto – January 25, 2017 – Echelon Financial Holdings Inc. (TSX: EFH) today announced that it will release its fourth quarter and year end financial results after market close on Thursday, February 16, 2017.
A conference call for analysts and interested listeners will be held on Friday, February 17, 2017, at 11:00 a.m. (ET). The call-in numbers for participants are 647-427-7450 or toll free 1-888-231-8191, Conference ID 56995968. A live audio feed of the call will be available online through the Company’s website at icpeiholdings.ca, or directly at Conference Call.

A replay of the call will be available until February 24, 2017. To access the replay, call 416-849-0833, or toll free 1-855-859-2056, password 56995968. An archive will be available on our website following the event.

About Echelon Insurance
Founded in 1998, Echelon operates in the property and casualty insurance industry in Canada and Europe, primarily focusing on non-standard automobile insurance and other niche and specialty insurance products. The Company operates and distributes insurance products through Echelon Insurance, The Insurance Company of Prince Edward Island and Qudos Insurance. It trades on the Toronto Stock Exchange under the symbol EFH. For more information, visit icpeiholdings.ca.

Company contact information: Kathy Shulman, Manager, Investor Relations
905-214-7880 ir@icpeiholdings.ca

Toronto – April 4, 2018 – Echelon Financial Holdings Inc. (TSX: EFH) today announced that it will release its first quarter financial results after market close on Thursday, May 3, 2018.

A conference call for analysts and interested listeners will be held on Friday, May 4, 2018, at 11:00 a.m. (ET). The call-in numbers for participants are 647-427-7450 or toll free 1-888-231-8191, Conference ID 5193545. A live audio feed of the call will be available online through the Company’s website at icpeiholdings.ca, or directly at the following link.

A replay of the call will be available until May 11, 2018. To access the replay, call 416-849-0833, or toll free 1-855-859-2056, password 5193545. An archive will be available on our website following the event.

About Echelon Financial Holdings Inc.

Founded in 1998, Echelon Financial Holdings Inc. operates in the property and casualty insurance industry in Canada, providing personal and commercial lines insurance exclusively through the broker channel. The Company distributes insurance products through Echelon Insurance and The Insurance Company of Prince Edward Island. It trades on the Toronto Stock Exchange under the symbol EFH. For more information, please visit icpeiholdings.ca.

COMPANY CONTACT INFORMATION:

Jennifer Kew
Investor Relations
905-214-7880
ir@icpeiholdings.ca

TORONTO, May 30, 2019 /CNW/ – Echelon Financial Holdings Inc. (“EFH” or “the Company”) (TSX: EFH), which has historically operated in the property and casualty insurance industry in Canada, is pleased to confirm that final regulatory approval has been granted for the sale of its wholly-owned subsidiary, Echelon Insurance, to a subsidiary of CAA Club Group (“CCG”)  (the “Transaction”). “We are pleased to take this important step towards completing the sale of Echelon Insurance to a buyer that will support the continued growth of Echelon Insurance, and the employees behind its success,” commented Murray Wallace, Chairman of EFH.

“We are excited to welcome Echelon Insurance to the CAA Club Group of Companies,” said Jay Woo, President and CEO of CAA Club Group. “We look forward to the continued growth of Echelon Insurance, leveraging its expertise and market leadership in specialty and commercial insurance.  We will expand and deepen our relationships with Brokers across Canada to continually enhance insurance products and services to protect Canadians from coast-to-coast.”

The Transaction is scheduled to be completed on or about May 31, 2019. The net proceeds to EFH (after adjustments and expenses) is expected to be approximately C$166 million, which includes C$12 million that will be placed in escrow while EFH and CAA Club Group review and confirm the calculation of regulatory MCT at closing (which EFH has committed will be at least 220%) (the “Escrowed Proceeds”).

Conditional upon the closing of the Transaction as scheduled, the board of EFH has declared a special distribution in the amount of $8.80 (the “Special Distribution Payment”) per outstanding common share of EFH (the “Common Shares”). The record date for shareholders entitled to receive the Special Distribution Payment will be June 11, 2019 and the payment date will be June 17, 2019 (the “Payment Date”). Approximately $5.80 of the Special Distribution Payment will be paid to shareholders as a return of capital, with the balance of $3.00 paid to shareholders as an eligible dividend.

The Toronto Stock Exchange (the “TSX”) has advised EFH that “Due Bills” are to be used in connection with the trading of the Common Shares through the facilities of the TSX for the period from and including June 10, 2019 until the close of trading on June 17, 2019 (the “Due Bill Period”). A Due Bill is defined in the TSX Company Manual as an instrument used to evidence the transfer of title to any dividend, distribution, interest, security or right to a listed security contracted for, or evidencing, the obligation of a seller to deliver such dividend, distribution, interest, security or right to a subsequent purchaser.

As a result, buyers of Common Shares during the Due Bill Period will receive the Special Distribution Payment, provided they continue to be holders of the applicable Common Share on the Payment Date.

The Common Shares will commence trading on an ex-distribution basis (i.e., without an attached Due Bill entitlement to the Special Distribution Payment) commencing at the opening of trading on June 18, 2019. The Due Bill redemption date will be June 19, 2019 (“Due Bill Redemption Date”).

As a result of the Common Shares trading on a Due Bill basis during the Due Bill Period, those shareholders entitled to be paid the Special Distribution Payment owing on the Due Bills should expect to receive that payment by the Due Bill Redemption Date. Shareholders prior to the Due Bill Period who do not purchase or sell Common Shares during the Due Bill Period will not have their applicable Special Distribution Payment impacted by the Due Bill process.

Following the closing of the Transaction and the Special Distribution Payment, the only material assets remaining in EFH will be its 75% shareholding in The Insurance Company of Prince Edward Island, and a cash reserve of approximately $80 million (including EFH’s entitlement to receive the remaining Escrowed Proceeds). For more information see EFH’s management information circular dated December 21, 2018 available at www.sedar.com.

Forward-looking Information

This news release contains forward-looking information based on current expectations. This information includes, but is not limited to, statements about the Transaction, the Special Distribution Payment and the financial position of EFH following the closing of the Transaction and the Special Distribution Payment.

This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a projection as reflected in the forward-looking information. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific. A variety of material factors, many of which are beyond EFH’s control, affect the operations, performance and results of its business and could cause actual results to differ materially from the expectations expressed in any of this forward-looking information.

EFH does not undertake to update any forward-looking information. Additional information about the risks and uncertainties about EFH’s business is provided in its disclosure materials, including its Annual Information Form and Management Discussion & Analysis, filed with the securities regulatory authorities in Canada, available at www.sedar.com.

About EFH

Founded in 1998, EFH has operated in the property and casualty insurance industry in Canada, providing personal and commercial lines insurance exclusively through the broker channel. It trades on the TSX under the symbol EFH. For more information, please visit echeloninsurance.ca.

SOURCE Echelon Financial Holdings Inc.

For further information: Company contact information: Jennifer Kew, Investor Relations, 905-214-7880, ir@echeloninsurance.ca

Echelon Financial Holdings Inc. Reports Third Quarter 2020 Results

Toronto, November 12, 2020 – Echelon Financial Holdings Inc. (“EFH” or the “Company”) (TSX: EFH) which operates in the property and casualty insurance industry in Canada, today reported net income attributable to shareholders on continued operations of $2.9 million, or $0.24 per share, for the three months ended September 30, 2020.

Third Quarter Highlights

• Net income per share on continued operations of $0.24 per share compared to a net loss of $0.04 per share in the third quarter of 2019.
• A combined ratio of 95.4% compared to 115.4% in the third quarter of 2019.
• A 14% increase in Direct Written Premiums over the same period in 2019 to $11.7 million as a result of growth in both the Personal and Commercial Lines. The COVID-19 pandemic did not have a significant impact on direct premiums written for the third quarter of 2020 when compared to the same period in prior year.
• Investment income was $2.2 million higher in the third quarter compared to same period in 2019, largely due to the sale of the majority of Common Shares portfolio.
• The Company settled the claim from New Nordic Odin Denmark arising from the sale of its European operations for $7 million, the result is included in discontinued operations. The Board concluded that it is in the best interests of EFH and the shareholders to settle the claim for a reasonable amount in order to avoid the expenses and risks of a lengthy litigation. “This will allow management and the Company to move on with its next phase of growth and expansion and focus on the Insurance Company of Prince Edward Island” said Serge Lavoie, the Company’s CEO.
• Closing book value per share of $1.55 after the Company paid a dividend of $5.60 per share and results of discontinued operations of $0.49 per share during the quarter. The Company’s book value per share increased by 8% over that at the end of second quarter on a comparable basis after adjusting for the dividend paid and the results of discontinued operations.

The financial information below compares three and nine months ended September 30, 2020 results with the same periods in 2019.

• Underwriting income excludes impact of change in claims discount rates and corporate expenses.
• Investment income consists of interest income, dividend income, realized gains less investment expense.

Underwriting Results:

Capital Management

The Minimum Capital Test (“MCT”) ratio of EFH’s subsidiary, Insurance Company of Prince Edward Island (ICPEI) as at September 30, 2020 was 332%, which comfortably exceeds the supervisory target.

 COVID-19 Pandemic Update

Since June 2020, ICPEI has resumed full operations in its office in Charlottetown while employees in the Mississauga office are still working from home.

ICPEI continued to provide a number of accommodations to its policyholders if they experienced hardship because of COVID-19 and adjusted their auto premiums due to reduction of use. ICPEI has only experienced a minor increase in the number of customer defaults and very few requests to lower monthly premiums based on lower usage of vehicles. These did not have a significant impact on the results of the Company.

 Non-IFRS Financial Measures

 EFH uses both IFRS and certain non-IFRS measures to assess performance. Securities regulators require that companies caution readers about non-IFRS measures that do not have a standardized meaning under IFRS and are unlikely to be comparable to similar measures used by other companies. EFH analyzes performance based on underwriting income and underwriting ratios such as combined, expense and loss ratios, which are non-IFRS measures. Underwriting income is defined as net earned premiums less net claims incurred, net acquisition costs, operating expenses, and excludes any impact of change in discount rate on claims and corporate expenses. Loss ratio is net claims incurred divided by net earned premiums. Expense ratio is net acquisition costs plus operating expenses divided by net earned premiums. Combined ratio is the sum of loss ratio and expense ratio.

 Forward-looking Information

 This news release contains forward-looking information based on current expectations. This information includes, but is not limited to, statements about the operations, business, financial condition, priorities, targets, ongoing objectives, strategies, litigation outcomes and outlook of EFH. These statements, which appear in this press release generally can be identified by the use of forward-looking words such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “plan”, “would”, “should”, “could”, “trend”, “predict”, “likely”, “potential” or “continue” or the negative thereof and similar variations.

This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a projection as reflected in the forward-looking information. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific. A variety of material factors, many of which are beyond EFH’s control, affect the operations, performance and results of its business and could cause actual results to differ materially from the expectations expressed in any of this forward-looking information.

About Echelon Financial Holdings Inc.

Founded in 1998, Echelon Financial Holdings Inc. operates in the property and casualty insurance industry in Canada, providing personal and commercial lines insurance exclusively through the broker channel. The Company distributes insurance products through The Insurance Company of Prince Edward Island. It trades on the Toronto Stock Exchange under the symbol EFH.

For more information, please visit www.icpeiholdings.ca

Investor Relations, 905-602-2150, ir@icpeiholdings.ca

ICPEI Holdings Inc. Reports Third Quarter 2022 Results

Toronto, November 16, 2022 – ICPEI Holdings Inc. (the “Company”) (TSXV: ICPH) which operates in the property and casualty insurance industry in Canada, today reported net income of $0.8 million for the quarter ended September 30, 2022.

Serge Lavoie, Chief Executive Officer, commented “Despite the significant impact of Hurricane Fiona in the Maritimes provinces, we managed to generate an underwriting income of $1 million in the third quarter”.

Highlights

• Premiums written of $24.3 million in this quarter represent a 32% growth over the same period in 2021. Personal Lines increased by 25% and Commercial Lines increased by 43% in this period when compared to the same period last year.
• The business mix at the end of the third quarter of 2022 is Commercial Lines of 49% and Personal Lines 51% compared to Commercial Lines of 43% and Personal Lines 57% in the same period last year. The growth is in line with our strategy to expand our business in commercial line.
• A Combined ratio of 95.2% resulting in an underwriting income of $1.0 million. Hurricane Fiona had a significant impact on the results in the quarter. Loss before reinsurance was estimated at $6.4 million and $1.2 million after recovery from reinsurance. Without Fiona, combined ratio would be 89.5% compared to 89.7% in the same period last year.
• Investment income of $0.3 million in the quarter compared $0.5 million in the same period last year. The higher interest environment increased our interest income in this quarter compared to the same period last year but also caused losses in our fixed income investments and preferred shares. Changes in preferred share fair value are charged to income. On the positive side, the expected yield in our investment portfolio has increased from 4.04% at the end of the last quarter to 4.62% in the quarter.
• The book value per share was increased by $0.05 to $1.92 from EPS in the quarter. Due to rapidly increasing interest rate environment, market value of our fixed income investment decreased and we recorded unrealized losses in Other Comprehensive Income that decreased the book value per share by $0.01. As a result, closing book value per share increased by $0.04 from end of last quarter.

• Sum of Operating expenses and Corporate expense equal Operating Costs on Consolidated Statements of Income and Comprehensive Income.
• Underwriting income is defined as net earned premiums less net claims incurred, net acquisition costs, operating expenses, and excludes any impact of change in discount rate on claims and corporate expenses.
• Book value per share is calculated by dividing shareholder’s equity by the number of common shares outstanding.
• Return on Equity is twelve months rolling net income attributable to shareholders on continued operations divided by average shareholder’s equity.

Underwriting Results:

Capital Management

The Minimum Capital Test (“MCT”) ratio of ICPH’s subsidiary, The Insurance Company of Prince Edward Island (ICPEI) as at September 30, 2022 was 284%, which comfortably exceeds the supervisory target of 150%.

COVID-19 Pandemic Update

Currently, COVID-19 did not have any significant impact on the premiums, collections, investments or other operational activities of the Company, but the impact remains uncertain as the pandemic continues to evolve.

Non-IFRS Financial Measures

The Company uses both IFRS and certain non-IFRS measures to assess performance. Securities regulators require that companies caution readers about non-IFRS measures that do not have a standardized meaning under IFRS and are unlikely to be comparable to similar measures used by other companies. The Company analyzes performance based on underwriting income and underwriting ratios such as combined, expense and loss ratios, which are non-IFRS measures. Underwriting income is defined as net earned premiums less net claims incurred, net acquisition costs, operating expenses, and excludes any impact of change in discount rate on claims and corporate expenses. Loss ratio is net claims incurred divided by net earned premiums. Expense ratio is net acquisition costs plus operating expenses divided by net earned premiums. Combined ratio is the sum of loss ratio and expense ratio. Return on Equity (“ROE”) is based on trailing twelve months net income attributable to shareholders on continued operations divided by average total equity. Book value per share (“BVPS”) is calculated by dividing total equity by the number of common shares outstanding

Forward-looking Information

This news release contains forward-looking information based on current expectations. This information includes, but is not limited to, statements about the operations, business, financial condition, priorities, targets, ongoing objectives, strategies, litigation outcomes and outlook of the Company. These statements, which appear in this press release generally can be identified by the use of forward-looking words such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “plan”, “would”, “should”, “could”, “trend”, “predict”, “likely”, “potential” or “continue” or the negative thereof and similar variations.

This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a projection as reflected in the forward-looking information. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific. A variety of material factors, many of which are beyond the Company’s control, affect the operations, performance and results of its business and could cause actual results to differ materially from the expectations expressed in any of this forward-looking information.

About ICPEI Holdings Inc.

Founded in 1998, ICPEI Holdings Inc. operates in the Canadian property and casualty insurance industry through its wholly owned subsidiary The Insurance Company of Prince Edward Island (ICPEI). ICPEI provides commercial and personal lines of insurance products exclusively through the broker channel.

The Company’s name was changed from EFH Holdings Inc. to ICPEI Holdings Inc. after receiving approval from shareholders on July 15, 2021. It trades on the TSX Venture Exchange under the symbol ICPH effective August 20, 2021 and prior to December 23, 2020 it traded on the Toronto Stock Exchange.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in

policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this

release.

For more information, please visit www.icpeiholdings.ca

Investor Relations, 905-602-2150, ir@icpeiholdings.ca

TORONTO, November 5, 2015 – Echelon Financial Holdings Inc. (“EFH” or “the Company”) (TSX: EFH), which operates in the property and casualty insurance industry in Canada and Europe, today reported a net loss attributable to shareholders of $3.6 million, or $0.31 per diluted share, for the three months ended September 30, 2015.

The Company also announced a 9% increase in its quarterly dividend to 12 cents per share.

Third Quarter 2015 Highlights

• Net operating income of $0.15 per share compared to $0.33 in the third quarter of 2014.
• An underwriting loss of $0.7 million for the quarter compared to underwriting income of $0.1 million in the third quarter of 2014.
• Combined operating ratio of 100.8% compared to 99.8% in the third quarter of 2014.
• A 25% increase in direct written premiums over the same period in 2014 to $131.2 million, mostly driven by growth in the International division.
• Total pre-tax loss on invested assets of $1.2 million in the quarter compared to pre-tax return of $4.3 million in the third quarter of 2014, primarily due to mark-to-market losses on Canadian preferred shares.
• A decrease in book value per share of 2.8% in the quarter to $15.55 per share, primarily due to weak investment results.

“Overall, it was a mixed quarter for the company,” said Steve Dobronyi, Chief Executive Officer.  “Strong underwriting results in Canada were more than offset by volatility in capital markets and disappointing results in Europe.”

“Ontario, Quebec and the Maritimes all made strong contributions to underwriting profits,” he commented. “In Europe, results were impacted by a spike in claims frequency on young drivers and as a result we continue to build prudent reserves to support the business.  We have already taken immediate action on the affected areas and have de-risked the underwriting profile through program cancellations, underwriting restrictions and other management initiatives.”

“We’re proud of the business that we’ve built in Europe over the past several years,” he continued.  “We are well positioned to selectively underwrite only the risks with the highest profit margins and are excited by the opportunity to now realize the value that’s been built.  Coupled with the consistent profitability of our Canadian business and an increase in our shareholder dividend, Echelon continues to offer an attractive mix of value, growth and income to our shareholders.”

Dividend

The Board of Directors increased the quarterly dividend by 9% to 12 cents per outstanding common share.  The dividend is payable on January 4, 2016, to shareholders of record on December 8, 2015.

Financial Summary

 (1) Net operating income is defined as net income excluding the impact of the change in discount rate and foreign exchange rates on unpaid claims and investments, realized losses or gains on sale of investments, discontinued operations, unrealized fair value changes on Fair Value Through Profit or Loss (FVTPL) investments and one-time, non-recurring charges.

(2) Net operating income is adjusted to that attributable to shareholders for per share calculation.

Third Quarter Review

Net operating income of $1.8 million or $0.15 per share was recorded in the quarter, compared to $3.9 million or $0.33 per share in the third quarter of 2014.  The decrease was primarily due to lower underwriting income in the International segment, in addition to higher corporate expenses. Corporate expenses include a $1.0 million one-time payment to SGI Canada for favourable development on prior year claims reserves at The Insurance Company of Prince Edward Island (“ICPEI”).

Personal Lines generated underwriting income of $1.9 million compared to $0.5 million in the same period last year, due to strong performance in Atlantic Canada, Quebec and Western Canada.

Commercial Lines generated underwriting income of $2.0 million compared to $0.8 million in the same period last year, due to strong results in Quebec Commercial lines and Western Canada commercial property.

The International division generated an underwriting loss of $2.1 million compared to underwriting income of $0.6 million in the same period last year primarily due to higher claims frequency than expected from the UK-based telematics learner driver‎ program. Details of de-risking initiatives in the European operations are provided below.

Direct written premiums increased by 25%, attributable primarily to a $23.1 million, or 40%, growth in the International division.

Investment losses were $2.8 million compared to investment gains of $6.3 million in the third quarter of 2014.  The total pre-tax loss on invested assets was $1.2 million in the quarter compared to $4.3 million pre-tax gain in the third quarter of 2014.  The preferred share portfolio was adversely impacted by decreasing interest rates in Canada.  Fixed income was adversely impacted by increasing interest rates in Europe and widening corporate spreads globally.  These losses were partially offset by currency gains due to the strengthening of the Euro to the Canadian dollar.  The fair value of Echelon’s investment portfolio, including finance receivables, was $545 million, up 3% from the third quarter of 2014.

Total operating and corporate expenses, including a $1.0 million ICPEI purchase adjustment, incurred in the third quarter of 2015 were in line with the prior year. Excluding the ICPEI purchase price adjustment of $1 million, total operating expenses decreased by 11% compared to the comparative quarter, primarily due to lower technology-related amortization.

On a consolidated basis, a net favourable development of prior year claims of $4.8 million was recorded in the third quarter of 2015 compared to favourable development of $5.6 million in the same period in 2014.

De-Risking of the International Segment

After a full review, the following management actions have been undertaken to limit the risk of the International segment:

• A telematics learner driver‎ program has now been provided with provisional notice of cancellation.
• A marginally profitable Accident and Sickness program has been cancelled, effective January 1, 2016.
• A new program moratorium has been implemented with immediate effect.
• An increase in external reinsurance and coinsurance has been implemented, in addition to premium volume caps on all UK and Irish motor insurance programs. Over 85% of the UK and Irish motor business will be ceded externally in 2016, an increase from approximately 50% in 2015.  As a result, the net premiums for UK and Irish motor, as a percentage of our overall European business, will decrease from approximately 50% in 2015 to about 20% in 2016.

We believe the actions above will result in a smaller International segment, but one that is more profitable, more proven, less volatile and less capital intensive.  It will have a more balanced risk profile and greater diversification by both product and geography, and it will allow management to focus more of its time and efforts on the highly profitable and successful Scandinavian business.

Nine-Month Review

Net operating income of $8.9 million or $0.74 per share was recorded compared to $8.3 million or $0.68 per share for the same period in 2014 primarily due to higher underwriting, interest and dividend income. Direct written premiums increased by 26%, attributable primarily to a $60.0 million, or 42%, growth in the International division and the inclusion of a full year of ICPEI premiums.

Investment income was $7.1 million compared to $18.0 million in the third quarter of 2014 primarily due to mark-to-market losses on Canadian preferred shares.  The total pre-tax return on invested assets was $5.3 million compared to $20.1 million in the same period of 2014.

Total operating and corporate expenses, including the $1.0 million ICPEI purchase adjustment incurred in the first nine months 2015, increased by 8% over the prior year, lower than the 14% increase in net earned premiums.

On a consolidated basis, a net favourable development of prior year claims of $9.7 million was recorded in the nine months ended September 30, 2015, compared to favourable development of $10.2 million in the same period in 2014.

Operating Results

(1)  Excluding head office overhead costs and impact of change in discount and foreign exchange rate on unpaid claims

(2)  Loss ratio excludes impact of change in discount and foreign exchange rate on unpaid claims

Capital Management

The Minimum Capital Test (MCT) ratio of EFH’s Canadian subsidiary, Echelon Insurance, as at September 30, 2015, was 216%, which comfortably exceeds the supervisory regulatory capital level required by the Office of the Superintendent of Financial Institutions (OSFI). ICPEI’s MCT ratio of 267% was in excess of provincial supervisory targets. The Company’s European subsidiary, Qudos, had a Danish Financial Services Authority (DKFSA) Individual Solvency ratio of 120%, in excess of the DKFSA target. In September 2015, the Company injected $5 million of capital into its European subsidiary to support its premium growth and strengthen its regulatory ratios. The Company’s ownership stake has increased to 95.5% from 93% as at June 30, 2015.

The Company repurchased 27,700 common shares at an average price of $14.21 for a total consideration of $0.4 million under an automatic share repurchase plan as at November 5, 2015. Year-to-date, the Company re-purchased and cancelled 74,600 common shares under the NCIB program at an average price of $13.41 per share for a total consideration of $1.0 million.

In addition to excess capital at Echelon Insurance, the Company has approximately $17 million of excess deployable capital invested in liquid assets in the holding company.

For the nine months ended September 30, 2015, total shareholders’ equity decreased by $1.1 million to $182.5 million from December 31, 2014.

Full Financial Statements and Management’s Discussion and Analysis (MD&A) are available on SEDAR and on the Company’s web site at icpeiholdings.ca.

Non-IFRS Financial Measures

EFH uses International Financial Reporting Standards (IFRS) and certain non-IFRS measures to assess performance.  Readers are cautioned that non-IFRS measures do not have a standardized meaning under IFRS and may not be comparable to similar measures used by other companies.  EFH analyzes performance based on operating income and underwriting ratios such as combined, expense and loss ratios.

Forward-looking Information

This news release contains forward-looking information based on current expectations.  This information includes, but is not limited to, statements about the operations, business, financial condition, priorities, targets, ongoing objectives, strategies and outlook of EFH for 2015 and subsequent periods.

This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a projection as reflected in the forward-looking information.  By its nature, this information is subject to inherent risks and uncertainties that may be general or specific.  A variety of material factors, many of which are beyond EFH’s control, affect the operations, performance and results of and its business and could cause actual results to differ materially from the expectations expressed in any of this forward-looking information.

EFH does not undertake to update any forward-looking information.  Additional information about the risks and uncertainties about Echelon’s business is provided in its disclosure materials, including its Annual Information Form and Management Discussion & Analysis, filed with the securities regulatory authorities in Canada, available at www.sedar.com.

Conference Call

A conference call for analysts and interested listeners will be held on Friday, November 6, 2015, at 11:00 a.m. (ET).  The call-in numbers for participants are 647-427-7450 or toll free 1-888-231-8191, Conference ID 62642570.  A live audio feed of the call will be available online through the Company’s website at icpeiholdings.ca, or directly at third quarter 2015 conference call.

A replay of the call will be available until November 13, 2015.  To access the replay, call 416-849-0833, or toll free 1-855-859-2056, enter password 62642570.  An archive will be available on our website following the event.

About Echelon Insurance:
Founded in 1998, Echelon operates in the property and casualty insurance industry in Canada and Europe, primarily focusing on non-standard automobile insurance and other niche and specialty insurance solutions.  The Company operates and distributes insurance products through Echelon Insurance, The Insurance Company of Prince Edward Island and Qudos Insurance.  It trades on the Toronto Stock Exchange under the symbol EFH.  For more information, visit icpeiholdings.ca.

For further information:  Kathy Shulman, Manager, Investor Relations; 905-214-7880; ir@icpeiholdings.ca

TORONTO, February 16, 2017 – Echelon Financial Holdings Inc. (“EFH” or “the Company”) (TSX: EFH), which operates in the property and casualty insurance industry in Canada, today reported net income attributable to shareholders on continued operations of $2.6 million, or $0.22 per diluted share, for the three months ended December 31, 2016.

All operating results below refer to continued operations.

Fourth Quarter 2016 Highlights

• Net operating income on continued operations of $0.40 per share compared to an income of $0.39 per share in the fourth quarter of 2015.
• A Canadian combined operating ratio of 90% compared to 88% in the fourth quarter of 2015 driven by exceptionally strong commercial lines results in the quarter, offset by weak performance in Ontario auto.
• A 15% increase in direct written premiums over the same period in 2015 to $49.4 million, primarily driven by additional new commercial lines products across Canada.
• Total pre-tax loss on invested assets of $0.6 million in the quarter compared to a pre-tax gain of $6.2 million in the fourth quarter of 2015, largely due to higher government bond yields and lower gains on Preferred Shares compared to prior year quarter.
• Closing book value per share of $11.70.
• We are currently awaiting approval for the change of control application submitted to the Danish Financial Services authority for the divestiture of the European operations.

“We have made meaningful progress on our strategy, which was outlined earlier in the year. In addition to improving our personal lines operations, we have built strong teams to support our surety, commercial auto and commercial property products. These expanded business lines have been very well received by existing and new brokers, and we look forward to continuing to build and develop our relationships with them” commented Serge Lavoie, Chief Executive Officer. “We are also scheduled to roll out our policy management system to the majority of our brokers in Ontario, Quebec and Alberta in the next few weeks which will greatly improve our ability to transact seamlessly with them.  We continue to wait for approval from the Danish Financial Services authority on the sale on of our European operations. Our expectation is that we will have a decision within the next two or three weeks.

“Our fourth quarter results were mixed. We were very pleased by the exceptional results reported in commercial lines across the country, however, our Personal Lines performance was negatively impacted by increased claims severity in Ontario auto, in line with market experience” he continued. “Most of these claims were reported prior to the introduction of the June 2016 reforms, which we hope will reduce catastrophic claims moving forward. We will continue to monitor our claims closely”.

Financial Summary on Continued Operations

(1) Net investment income consists of interest income, dividend income and premium financing charges, less interest expense.

(2) Net operating income is defined as underwriting income plus interest and dividend income, net of tax. Underwriting income excludes impact of change in claims discount rates, foreign exchange on unpaid claims and investments, and non-recurring items.  Net operating income is adjusted to that attributable to shareholders for per share calculation.

Fourth Quarter Review

Net operating income of $4.9 million or $0.40 per share was recorded in the quarter, compared to an income of $4.7 million or $0.39 per share in the fourth quarter of 2015.

Personal Lines generated an underwriting loss of $3.5 million compared to an underwriting income of $3.3 million in the same period last year, primarily due to weak performance in Ontario auto driven by increased severity in claims. Commercial Lines generated an underwriting income of $7.9 million compared to $2.2 million in the same period last year due to strong performance across Canada. The Company continues to focus on growing the Canadian business through product expansion, investments in technology and strong broker relationships.

Direct written premiums increased by 15% to $49.4 million, primarily due to new product lines

Investment income was $3.2 million compared to $6.3 million in the fourth quarter of 2015 primarily due to lower preferred shares mark-to-market gains in the quarter compared to prior year quarter.  The total pre-tax loss on invested assets was $0.6 million in the quarter compared to a pre-tax gain of $6.2 million in the fourth quarter of 2015, primarily due to higher government bond yields and weaker Preferred Share performance compared to the prior year quarter.  The fair value of Echelon’s investment portfolio, including finance receivables, was $410 million.

Net favourable development of prior year claims of $3.4 million was recorded in the fourth quarter of 2016 compared to favourable development of $8.3 million in the same period in 2015.

Operating Results

(1) Excluding head office overhead costs

Twelve-Month Review

Net operating income of $10.4 million or $0.86 per share was recorded compared to $9.9 million or $0.83 per share for the same period in 2015.

Personal lines generated an underwriting loss of $3.2 million compared to an underwriting income of $3.3 million in the same period last year, primarily due to weaker performance in Ontario auto. Commercial lines generated an underwriting income of $10.0 million compared to $4.9 million in the same period last year due to strong performance of property and liability, warranty and commercial auto products.

Direct written premiums increased by 9%, attributable predominantly to new product lines in surety and commercial auto and stronger broker relationships.

Investment income was $16.5 million compared to a $12.6 million in 2015, primarily due to improved performance of the preferred share portfolio compared to the prior period.  Total pre-tax return on invested assets was $7.5 million compared to $6.0 million in the same period of 2015.

Operating expenses incurred in 2016 increased by 5% over the prior year to $29.2 million due to costs associated with upgrading and rolling out a new policy management system.

Net favourable development of prior year claims of $17.2 million was recorded in the twelve months ended December 31, 2016 compared to favourable development of $20.3 million in the same period in 2015.

Capital Management

All related entities remain well capitalized.  The Minimum Capital Test (MCT) ratio of EFH’s Canadian subsidiary, Echelon Insurance, as at December 31, 2016, was 237%, which exceeds the supervisory regulatory capital level required by the Office of the Superintendent of Financial Institutions (OSFI). ICPEI’s MCT ratio of 340% comfortably exceeded provincial supervisory targets. In addition, the Company has approximately $5 million of excess deployable capital invested in liquid assets in the holding company.

For the twelve months ended December 31, 2016, total shareholders’ equity decreased by $43.5 million to $137.4 million from December 31, 2015, including impairment of $23.4 million relating to discontinued operations.

Full Financial Statements and Management’s Discussion and Analysis (MD&A) are available on SEDAR and on the Company’s web site at icpeiholdings.ca

Non-IFRS Financial Measures

EFH uses International Financial Reporting Standards (IFRS) and certain non-IFRS measures to assess performance.  Readers are cautioned that non-IFRS measures do not have a standardized meaning under IFRS and may not be comparable to similar measures used by other companies.  EFH analyzes performance based on operating income and underwriting ratios such as combined, expense and loss ratios.

Forward-looking Information

This news release contains forward-looking information based on current expectations.  This information includes, but is not limited to, statements about the operations, business, financial condition, priorities, targets, ongoing objectives, strategies and outlook of EFH for 2016 and subsequent periods.

This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a projection as reflected in the forward-looking information.  By its nature, this information is subject to inherent risks and uncertainties that may be general or specific.  A variety of material factors, many of which are beyond EFH’s control, affect the operations, performance and results of and its business and could cause actual results to differ materially from the expectations expressed in any of this forward-looking information.

EFH does not undertake to update any forward-looking information.  Additional information about the risks and uncertainties about Echelon’s business is provided in its disclosure materials, including its Annual Information Form and Management Discussion & Analysis, filed with the securities regulatory authorities in Canada, available at www.sedar.com.

Conference Call

A conference call for analysts and interested listeners will be held on Friday, February 17, 2017, at 11:00 a.m. (ET).  The call-in numbers for participants are 647-427-7450 or toll free 1-888-231-8191, Conference ID 56995968.  A live audio feed of the call will be available online through the Company’s website at icpeiholdings.ca, or directly at conference call.

A replay of the call will be available until February 24, 2017.  To access the replay, call 416-849-0833, or toll free 1-855-859-2056, password 56995968.  An archive will be available on our website following the event.

About Echelon Financial Holdings Inc.

Founded in 1998, Echelon operates in the property and casualty insurance industry in Canada, primarily focusing on non-standard automobile insurance and other specialty P&C insurance products. The Company operates and distributes insurance products through Echelon Insurance, The Insurance Company of Prince Edward Island and Qudos Insurance. It trades on the Toronto Stock Exchange under the symbol EFH. For more information, please visit icpeiholdings.ca.

Company contact information:

Kathy Shulman, Manager, Investor Relations  905-214-7880  ir@icpeiholdings.ca

TORONTO, May 3, 2018 /CNW/ – Echelon Financial Holdings Inc. (“EFH” or “the Company”) (TSX: EFH), which operates in the property and casualty insurance industry in Canada, today reported net income attributable to shareholders on continued operations of $5.8 million, or $0.48 per diluted share, for the three months ended March 31, 2018.

All operating results below refer to continued operations.

First Quarter 2018 Highlights

• Net operating income on continued operations of $0.29 per share compared to $0.19 per share in the first quarter of 2017.
• A combined operating ratio of 95% compared to 94% in the first quarter of 2017.
• A 45% increase in direct written premiums over the same period in 2017 to $79.3 million as a result of organic growth, supported by rate increases in Commercial Lines.
• A pre-tax gain on invested assets of $0.9 million in the quarter, compared to a pre-tax gain of $5.1 million in the prior year quarter, attributable to weak performance of the preferred shares portfolio.
• Closing book value per share of $12.47, an increase of $0.46 or 4% from the fourth quarter of 2017. The increase is driven by strong underwriting income, investment returns, the impact on claims liabilities from the change in discount rate and the recognition of a $0.17 per share deferred tax asset from the utilization of capital losses.

“Our first quarter results were positive,” commented Serge Lavoie, Chief Executive Officer. “We finished the quarter with an overall combined ratio of 95%. While the industry as a whole experienced severe losses during the early winter months, our results were largely unaffected, due to our focus on small to mid-sized customers, and our prudent retention limits.”

“We experienced an increase in written premium across all lines and regions, attributable to organic growth and rate increases, particularly in Commercial Lines,” he continued. “We are actively implementing further rate and underwriting changes to ensure ongoing profitability.”

“We are pleased with the accomplishments made in systems this quarter,” he explained. “We added additional automation functionality to our policy management system, and piloted the launch of our Passport Portal in Ontario. These enhancements have begun to streamline our business submission and policy issuance process internally, and for our broker partners,” he concluded. “Our brokers have been very receptive to the latest round of system improvements, and are eager to see these features cascaded across our other regions and lines of business.”

Financial Summary on Continued Operations

^{(1)  Net operating income is defined as underwriting income plus interest and dividend income, net of tax, excluding catastrophic losses.
(2)  Net operating income is adjusted to that attributable to shareholders for per share calculation.}

First Quarter Review

The Company reported net operating income of $3.5 million or $0.29 per share in the quarter, compared to income of $2.3 million or $0.19 per share in the first quarter of 2017, an increase of 53%.

Direct written premiums increased by 45% to $79.3 million, due to organic growth in all lines supported by Commercial rate increases.

Personal Lines generated an underwriting income of $2.0 million, comparable to an underwriting income of $1.9 million in the same period last year, with stable growth coming largely from our automobile lines of business.

Commercial Lines generated an underwriting income of $1.2 million compared to an underwriting income of $1.0 million in the same period last year due to strong performance in commercial property.

Investment income was $2.0 million compared to $8.5 million in the first quarter of 2017. The pre-tax gain on invested assets was $0.9 million in the quarter, compared to a pre-tax gain of $5.1 million in the first quarter of 2017. This was due to weak performance in the preferred shares portfolio. The fair value of Echelon’s investment portfolio, including finance receivables, was $461 million.

Net favourable development of prior year claims of $3.6 million was recorded in the first quarter of 2018, compared to favourable development of $3.3 million in the same period in 2017.

Operating Results

^{(1) Excluding head office overhead costs}

Capital Management

All related entities remain well capitalized.  The Minimum Capital Test (MCT) ratio of EFH’s subsidiary, Echelon Insurance, as at March 31, 2018, was 235%, which comfortably exceeds the supervisory regulatory capital level required by the Office of the Superintendent of Financial Institutions (OSFI). ICPEI’s MCT ratio of 335% was also in excess of provincial supervisory targets.

As at March 31, 2018, the Company has approximately $21 million of excess deployable capital invested in liquid assets at the holding company. EFH currently intends to use any excess capital in addition to capital generated from its operations to fund the growth in its insurance operating companies.

For the three-month period ended March 31, 2018, total shareholders’ equity increased by $6.0 million to $148.9 million from December 31, 2017.

Full Financial Statements and Management’s Discussion and Analysis (MD&A) are available on SEDAR and on the Company’s web site at icpeiholdings.ca.

Non-IFRS Financial Measures

EFH uses International Financial Reporting Standards (IFRS) and certain non-IFRS measures to assess performance.  Readers are cautioned that non-IFRS measures do not have a standardized meaning under IFRS and may not be comparable to similar measures used by other companies. EFH analyzes performance based on operating income and underwriting ratios such as combined, expense and loss ratios.

Forward-looking Information

This news release contains forward-looking information based on current expectations. This information includes, but is not limited to, statements about the operations, business, financial condition, priorities, targets, ongoing objectives, strategies and outlook of EFH for 2018 and subsequent periods.

This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a projection as reflected in the forward-looking information. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific. A variety of material factors, many of which are beyond EFH’s control, affect the operations, performance and results of its business and could cause actual results to differ materially from the expectations expressed in any of this forward-looking information.

EFH does not undertake to update any forward-looking information. Additional information about the risks and uncertainties about Echelon’s business is provided in its disclosure materials, including its Annual Information Form and Management Discussion & Analysis, filed with the securities regulatory authorities in Canada, available at www.sedar.com.

Conference Call

A conference call for analysts and interested listeners will be held on Friday, May 4, 2018, at 11:00 a.m. (ET). The call-in numbers for participants are 647-427-7450 or toll free 1-888-231-8191, Conference ID 5193545. A live audio feed of the call will be available online through the Company’s website at icpeiholdings.ca, or directly at the following link.

A replay of the call will be available until May 11, 2018. To access the replay, call 416-849-0833, or toll free 1-855-859-2056, password 5193545. An archive will be available on our website following the event.

About Echelon Financial Holdings Inc.

Founded in 1998, Echelon Financial Holdings Inc. operates in the property and casualty insurance industry in Canada, providing personal and commercial lines insurance exclusively through the broker channel. The Company distributes insurance products through Echelon Insurance and The Insurance Company of Prince Edward Island. It trades on the Toronto Stock Exchange under the symbol EFH. For more information, please visit icpeiholdings.ca.

Company contact information: Jennifer Kew, Investor Relations, 905-214-7880, ir@icpeiholdings.ca