TORONTO, February 3, 2016 /CNW/ – Echelon Financial Holdings Inc. (or “the “Company”) (TSX: EFH) today announced that Steve Dobronyi has decided to step down as Chief Executive Officer.  He has agreed to remain with the Company until the annual general meeting on May 5, at which time, Serge Lavoie will be appointed Chief Executive Officer.

Mr. Lavoie is currently President and Chief Executive Officer of Echelon Insurance.  Prior to that, he was a Director of Echelon Insurance from May, 2014 to November, 2015.  Until 2012, he was Chief Executive Officer of Jevco Insurance Company.

Rob Purves, Chairman of the Board, thanked Mr. Dobronyi for his strong contribution. “Steve successfully led the Company with creativity and energy through several challenging business cycles.  Over his six year tenure, he steadily grew the Canadian operations and restored profitability to target levels.  He divested the unprofitable US operations and other non-core businesses and led the acquisitions of ICPEI and CUISA MGA”, said Mr. Purves.

Mr. Purves continued, “Serge brings deep and proven experience in the Canadian property and casualty insurance industry to Echelon’s leadership. We look forward to working with him to utilize Echelon’s business platform and accelerate our growth plans in Canada.”

“I’m excited to lead the Company on a path of growth and profitability in the ensuing years. The Company has many fine employees whom I have come to know and I’m certain that together we will ensure the future success of Echelon”, said Mr. Lavoie.

About Echelon Insurance

Founded in 1998, the Company 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.

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

Toronto – April 4, 2017 – Echelon Financial Holdings Inc. (TSX: EFH) today announced that it will release its first quarter financial results after market close on Wednesday, May 3, 2017.

A conference call for analysts and interested listeners will be held on Thursday, May 4, 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 2940919.  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 May 11, 2017.  To access the replay, call 416-849-0833, or toll free 1-855-859-2056, password 2940919.  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, primarily focusing on non-standard automobile insurance and other niche and specialty insurance products.  The Company operates and 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, visit icpeiholdings.ca.

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

TORONTO, August 23, 2018 – Echelon Financial Holdings Inc. (TSX: EFH) today announced the resignation of Alvin Sharma as Echelon’s Chief Financial Officer and a member of the Company’s Senior Management team.

After nearly six years with the Company, Mr. Sharma has decided to pursue another opportunity as a CFO in the life insurance industry.

“Alvin has been a key member of our management team during Echelon’s recent growth, and we would like to thank him for all his contributions,” commented Serge Lavoie, President and CEO. “We will miss him greatly, and wish him well in his future endeavours.”

Mr. Sharma’s resignation is effective September 14^th, and the Company will immediately begin a search for Mr. Sharma’s successor. In the meantime, Patrick Espeut, Vice President of Finance and Corporate Controller, will act as interim CFO for the Company.

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

August 6, 2019 – Echelon Financial Holdings Inc. (“EFH” or the “Company”) (TSX: EFH) is providing an update on the New Nordic Arbitration.

As disclosed previously, arbitration proceedings were commenced on September 18, 2018 in Denmark against EFH alleging misrepresentations by the Company at the time EFH sold Qudos Insurance to New Nordic Advisors Limited (“NNAL”). Although the Share Sale Agreement specifically provided that it was not assignable, NNAL purported to assign it to a third party, who commenced the arbitration. The arbitration panel in Denmark has now dismissed entirely the arbitration proceedings, with costs awarded to EFH, on the basis that the third party had no standing to bring them.

A statement of claim naming New Nordic Odin Denmark as plaintiff was filed on August 2, 2019 in the Danish Institute of arbitration. The Company continues to deny all allegations made against it by NNGL and states that there is no merit to NNGL’s claim for €45.8 million in damages.

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.

Company contact information:
Teddy Chien
Chief Financial Officer
ir@icpeiholdings.ca

Toronto, May 20, 2021 – EFH Holdings Inc. (“EFH” or the “Company”) (TSXV: EFH) which operates in the property and casualty insurance industry in Canada, today reported net income of $1.1 million for the quarter ended March 31, 2021 compared to $0.4 million in the same period of 2020.

Highlights

• Net income per share of $0.06 per share this quarter compared to $0.03 per share in the first quarter of 2020.
• Direct Written Premiums of $11.4 million in this quarter represents a 42% increase over the same period in 2020. Personal lines increased by 9% and commercial lines increased by 104% in this period when compared to the same period last year. The increase in Commercial Lines was largely due to $2.4 million new business written in Quebec that started operating in the fourth quarter last year.
• Investment income was $0.7 million higher in this quarter compared to same period in 2020, largely due to the positive change in Fair Value of Preferred Shares compared to the same period last year.
• Closing book value per share of $1.65 compared to $1.59 at the end of 2020. The increase from the last quarter is the result of $0.06 from earnings per share in the first quarter of 2021.

Subsequent Event

On April 1, 2021, the Company made further investment in ICPEI by purchasing the remaining 25% ownership of ICPEI that it did not already own. The Company paid cash of $6.3 million plus assumption of $0.5 million liabilities. This represents 4.9 times ICPEI’s trailing twelve months earnings before interest, taxes, depreciation and amortization (EBITDA). The transaction was financed partly by issuing 2,735,600 common shares of the Company through a non-brokered private placement at a price of $1.42 per Share for $3.9 million. The Company also entered into a credit facility with National Bank consisting of $3 million Term Loan and $2 million revolving credit and drew on the $3 million Term Loan on April 1, 2021.

As a result of this investment, non-controlling interest will be eliminated and the excess of the cash paid plus the assumption of certain liabilities and expenses will be charged to shareholders’ equity. The book value per share is estimated to be $1.48 per share after taking effect of this investment.

The Company believes this investment will be accretive to shareholders’ value as it further expands into Quebec and Ontario.

• 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.

Underwriting Results:

Capital Management

The Minimum Capital Test (“MCT”) ratio of EFH’s subsidiary, Insurance Company of Prince Edward Island (ICPEI) as at March 31, 2021 was 327%, which comfortably exceeds the supervisory target of 150%.

COVID-19 Pandemic Update

ICPEI continues to implement its emergency operational plan, which included transitioning most employees to work from home and only a small number of staff in the office to perform functions which could not be performed remotely.

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 EFH Holdings Inc.

Founded in 1998, EFH 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. The Company’s name was changed from Echelon Financial Holdings Inc. to EFH Holdings Inc. after receiving approval from shareholders on December 11, 2020. It trades on the TSX Venture Exchange under the symbol EFH 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, February 24, 2023 – ICPEI Holdings Inc. (the “Company”) (TSXV: ICPH) today announced that the Ontario Superior Court of Justice (Commercial List) has approved its previously announced plan of arrangement pursuant to which certain key members of management and other existing shareholders of the Company (collectively, the “Rollover Shareholders”), Desjardins General Insurance Group Inc., and certain other investors would indirectly acquire all of the outstanding common shares of the Company (the “Shares”) for $4.00 per Share (other than certain Shares held by Rollover Shareholders) (the “Arrangement”).

The Arrangement was approved by shareholders of the Company at a special meeting held on February 13, 2023. Subject to the satisfaction or waiver of customary closing conditions, the Arrangement is expected to be completed on or about February 28, 2023, subject to the issuance of a certificate of arrangement under the Business Corporations Act (Ontario).

Following completion of the Arrangement, the Shares are expected to be delisted from the TSX Venture Exchange and the Company intends to apply to cease to be a reporting issuer under the securities legislation of each province and territory of Canada.

Further details regarding the terms and conditions of the Arrangement are set out in the management information circular of the Company dated January 11, 2023 (the “Circular”) and the arrangement agreement dated December 9, 2022 each of which are available under the Company’s SEDAR profile at www.sedar.com.

Enclosed with the Circular was a letter of transmittal explaining how registered shareholders of the Company can submit their Shares in order to receive consideration pursuant to the Arrangement. Registered shareholders who have questions or require assistance with submitting their Shares in connection with the Arrangement may direct their questions to Computershare Investor Services Inc., which is acting as depositary in connection with the Arrangement, toll free at 1-800-564-6253 or by email at corporateactions@computershare.com. Non-registered shareholders may direct their questions to their broker or other intermediary.

Forward-looking statements

 Certain statements made herein, including statements relating to matters that are not historical facts and statements of the Company’s beliefs, intentions and expectations about developments, results and events which will or may occur in the future, constitute “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information relates to future events or future performance, reflect current expectations or beliefs regarding future events and is typically identified by words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “likely”, “may”, “plan”, “seek”, “should”, “will” and similar expressions suggesting future outcomes or statements regarding an outlook. Forward-looking information includes, but is not limited to, statements with respect to the expected timing of closing of the Arrangement, the delisting of the Shares, the Company’s application to cease to be a reporting issuer and other statements that are not historical facts.

Forward-looking information is based upon certain assumptions and other important factors that, if untrue, could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such information. There can be no assurance that such information will prove to be accurate. Such information is based on numerous assumptions, including assumptions regarding the ability to complete the Arrangement on the contemplated terms or at all, that the conditions precedent to closing of the Arrangement can be satisfied, and assumptions regarding present and future business strategies, local and global economic conditions, and the environment in which the Company operates.

Although the Company believes that the forward-looking information in this news release is based on information and assumptions that are current, reasonable and complete, this information is by its nature subject to a number of factors, many of which are beyond the Company’s control, that could cause actual results to differ materially from management’s expectations and plans as set forth in such forward-looking information, including, without limitation, the following factors: (a) the possibility that the Arrangement will not be completed on the terms and conditions, or on the timing, currently contemplated, and that it may not be completed at all due to a failure to satisfy, in a timely manner or otherwise, conditions of closing necessary to complete the Arrangement or for other reasons; (b) the possibility of adverse reactions or changes in business relationships resulting from the announcement or completion of the Arrangement; (c) risks relating to the retention of key personnel during the interim period; (d) the possibility of litigation relating to the Arrangement; (e) risks related to the diversion of management’s attention from the Company’s ongoing business operations; and (f) other risks inherent to the Company’s business and/or factors beyond its control which could have a material adverse effect on the Company or the ability to consummate the Arrangement. The Company cautions that the foregoing list is not exhaustive of all possible factors that could impact the Company’s results.

Investors and others should carefully consider the foregoing factors and other uncertainties and potential events and should not rely on the Company’s forward-looking information to make decisions with respect to the Company. Furthermore, the forward-looking information contained herein are made as of the date of this document and the Company does not undertake any obligation to update or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law. All forward-looking information contained herein is expressly qualified by this cautionary statement.

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 further information, please contact:

 Ken Coulson, General Counsel of ICPEI Holdings Inc., at 905-602-2150, ir@icpeiholdings.ca or visit our website at www.icpeiholdings.ca.

TORONTO, February 8, 2016 /CNW/ – Echelon Financial Holdings Inc. (“Echelon Financial” or the “Company”) (TSX: EFH) today announced that Douglas McIntyre has tendered his resignation as a member of the Board of Directors of Echelon Financial, in order to pursue other opportunities. Mr. McIntyre also resigned his directorships of the Company’s subsidiaries, Echelon Insurance, Qudos Insurance A/S and CIM Reinsurance Company Ltd.

Mr. McIntyre was one of the key contributors to Echelon’s growth, starting with Canadian Insurance Marketing Inc., a predecessor of the Company. In 2002, Mr. McIntyre was appointed Chief Executive Officer of Echelon Insurance and three years later led the Company’s IPO. He retired as CEO of the Company in 2010.

Rob Purves, the Chairman of the Company’s Board of Directors, thanked Mr. McIntyre on behalf of the Board and the Company for his long-time dedication. “Doug has been an integral part of Echelon Insurance for the past 14 years and was the guiding force in Echelon’s rehabilitation and revitalization in the early 2000s. Doug is a consummate insurance professional and astute financier. We wish him well in his future endeavours.”

About Echelon Insurance

Founded in 1998, the Company 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.

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

TORONTO, May 3, 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 $7.5 million, or $0.62 per diluted share, for the three months ended March 31, 2017.

 All operating results below refer to continuing operations.

First Quarter 2017 Highlights

• Net operating income on continued operations of $0.19 per share compared to an income of $0.09 per share in the first quarter of 2016.
• A Canadian combined operating ratio of 94% compared to 100% in the first quarter of 2016 driven by strong results in both Personal Lines and Commercial Lines.
• A 30% increase in direct written premiums over the same period in 2016 to $54.6 million as a result of growth in existing products in Personal Lines and new Commercial Lines products.
• Total pre-tax gain on invested assets of $5.1 million in the quarter compared to a pre-tax loss of $0.6 million in the first quarter of 2016 due to strong Preferred Share and Fixed Income performance.
• Closing book value per share of $12.10, an increase of 3.4% over the fourth quarter of 2016.

“We are pleased to report strong results this quarter in both Personal and Commercial lines, despite adverse weather conditions in the Maritime provinces” commented Serge Lavoie, Chief Executive Officer.

“Direct Written Premiums increased by 30% compared with the prior year quarter, driven by growth in both new and existing business lines”, he continued. “Our full suite of products is being well received by the broker community, and the introduction of our enhanced systems will continue to support Echelon’s growth in 2017 and beyond. We look forward to further building our relationships with our brokers across Canada, and are committed to building strong and sustainable insurance solutions, aligned directly to their needs”.

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.

First Quarter Review

Net operating income of $2.3 million or $0.19 per share was recorded in the quarter, compared to an income of $1.0 million or $0.09 per share in the first quarter of 2016.

Personal Lines generated underwriting income of $1.9 million compared to an underwriting income of $0.7 million in the same period last year primarily due to strong performance in non-standard auto and motorcycle, partially offset by weaker performance in Atlantic Canada related to severe winter weather conditions.

Commercial Lines generated an underwriting income of $1.0 million compared to a $0.8 million underwriting loss in the same period last year primarily due to strong performance in warranty, commercial property and liability lines.  The Company continues to focus on growing the Canadian business through product expansion, technology investments, and strong broker relationships.

Direct written premiums increased by 30% to $54.6 million, primarily due to growth in Ontario personal lines and Quebec commercial lines, driven by broker transfers on existing products and the launch of new products in 2016.

Investment income was $8.5 million compared to $3.9 million in the first quarter of 2016 primarily due to realized foreign exchange gains arising on investment hedges from the sale of the European operations.  The total pre-tax gain on invested assets was $5.1 million in the quarter compared to pre-tax loss of $0.6 million in the first quarter of 2016, primarily due to strong performance of Preferred Share and Fixed Income investments.  The fair value of Echelon’s investment portfolio, including finance receivables, was $417 million.

Net favourable development of prior year claims of $3.3 million was recorded in the first quarter of 2017 compared to favourable development of $2.1 million in the same period in 2016.

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 Canadian subsidiary, Echelon Insurance, as at March 31, 2017, was 258%, which exceeds the supervisory regulatory capital level required by the Office of the Superintendent of Financial Institutions (OSFI). ICPEI’s MCT ratio of 354% was in excess of provincial supervisory targets.

The Company has approximately $10 million of excess deployable capital invested in liquid assets in the holding company.  All regulated entities remain well-capitalized.

For the three months ended March 31, 2017, total shareholders’ equity increased by $5.6 million to $143.0 million from December 31, 2016.

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.

Director Elections

Daniel Courtemanche has, for personal reasons, withdrawn his name as director nominee for the Company Board of Directors. The Board of Directors has resolved that 8 directors will be elected at the May 9, 2017 Annual General Meeting. With the exception of Mr. Courtemanche, the slate of director nominees will remain the same as previously set out in the Proxy and Management Information Circular.

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 2017 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 Thursday, May 4, 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 2940919.  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 May 11, 2017.  To access the replay, call 416-849-0833, or toll free 1-855-859-2056, enter password 2940919. 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 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:

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

TORONTO, August 6, 2019 /CNW/ – Echelon Financial Holdings Inc. (the “Company”) (TSX: EFH) today announced the voting results for the election of its board of directors at its annual general meeting of shareholders on August 6, 2019. The six nominees listed in the Company’s management information circular dated July 2, 2019, were elected as directors. The detailed results of the vote held at its AGM are set out below.

The resolution to re-appoint PricewaterhouseCoopers LLP as the auditors of the Company was carried.

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.

For further information:

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

EFH Holdings Inc. Reports Appointment of Ken Coulson as General Counsel

Toronto, June 9, 2021 – EFH Holdings Inc. (“EFH” or the “Company”) (TSXV: EFH) Board of Directors is pleased to announce that Ken Coulson has been appointed as the Company’s General Counsel and Corporate Secretary.  Mr. Coulson, called to the Ontario bar in 1989, re-joins the Company after a two year hiatus.  As a senior officer of the Company, Mr. Coulson’s compensation includes a grant of 42,000 Restricted Share Units (“RSUs”), made pursuant to the Company’s Share Unit Plan for Eligible Employees.  Each RSU is exercisable into one common share of the Company upon vesting. The RSUs will vest in three equal installments on the anniversary of the date of grant.  Serge Lavoie, Chief Executive Officer of EFH, said “We are very pleased that Ken has re-joined the EFH team.  With his experience and background, Ken is a very welcome addition to EFH’s management team.”

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 EFH Holdings Inc.

Founded in 1998, EFH 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. The Company’s name was changed from Echelon Financial Holdings Inc. to EFH Holdings Inc. after receiving approval from shareholders on December 11, 2020. It trades on the TSX Venture Exchange under the symbol EFH 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, Feb. 28, 2023 /CNW/ – ICPEI Holdings Inc. (the “Company”) (TSXV: ICPH) is pleased to announce the completion of the previously announced plan of arrangement (the “Arrangement”) pursuant to which certain key members of management and other existing shareholders of the Company (collectively, the “Rollover Shareholders”), Desjardins General Insurance Group Inc. and certain other investors indirectly acquired all of the outstanding common shares of the Company (the “Shares”) for $4.00 per Share (other than with respect to certain Shares held by Rollover Shareholders).

The Shares are expected to be de-listed from the TSX Venture Exchange at the close of trading on or after March 2, 2023. The Company also intends to apply to cease to be a reporting issuer under the securities legislation of each province and territory of Canada.

Further details regarding the terms and conditions of the Arrangement are set out in the management information circular of the Company dated January 11, 2023 (the “Circular”) and the arrangement agreement dated December 9, 2022 each of which are available under the Company’s SEDAR profile at www.sedar.com. Information is also available in the Company’s news releases issued on December 9, 2022, February 13, 2023 and February 24, 2023 which announced the Arrangement, the results of the special meeting of shareholders and receipt of the final order, respectively.

Enclosed with the Circular was a letter of transmittal explaining how registered shareholders of the Company can submit their Shares in order to receive consideration pursuant to the Arrangement. Registered shareholders who have questions or require assistance with submitting their Shares in connection with the Arrangement may direct their questions to Computershare Investor Services Inc., which is acting as depositary in connection with the Arrangement, toll free at 1-800-564-6253 or by email at corporateactions@computershare.com. Non-registered shareholders may direct their questions to their broker or other intermediary.

Caution regarding forward-looking information and statements

Certain statements made herein, including statements relating to matters that are not historical facts and statements of the Company’s beliefs, intentions and expectations about developments, results and events which will or may occur in the future, constitute “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information relates to future events or future performance, reflect current expectations or beliefs regarding future events and is typically identified by words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “likely”, “may”, “plan”, “seek”, “should”, “will” and similar expressions suggesting future outcomes or statements regarding an outlook. Forward-looking information includes, but is not limited to, statements with respect to the expected de-listing of the Shares and the Company’s application to cease to be a reporting issuer.

Forward-looking information is based upon certain assumptions and other important factors that, if untrue, could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such information. There can be no assurance that such information will prove to be accurate. Although the Company believes that the forward-looking information in this news release is based on information and assumptions that are current, reasonable and complete, this information is by its nature subject to a number of factors, many of which are beyond the Company’s control, that could cause actual results to differ materially from management’s expectations and plans as set forth in such forward-looking information, including, without limitation, the risks inherent to the Company’s business and/or factors beyond its control which could have a material adverse effect on the Company. The Company cautions that the foregoing list is not exhaustive of all possible factors that could impact the Company’s results.

Investors and others should carefully consider the foregoing factors and other uncertainties and potential events and should not rely on the Company’s forward-looking information to make decisions with respect to the Company. Furthermore, the forward-looking information contained herein are made as of the date of this document and the Company does not undertake any obligation to update or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law. All forward-looking information contained herein is expressly qualified by this cautionary statement .

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.

SOURCE ICPEI Holdings Inc.

For further information: Ken Coulson, General Counsel of ICPEI Holdings Inc., at 905-602-2150, ir@icpeiholdings.ca or visit our website at www.icpeiholdings.ca.

TORONTO, February 17, 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 of $3.6 million, or $0.30 per diluted share, for the three months ended December 31, 2015.

Fourth Quarter Highlights

• Net operating income of $0.01 per share compared to $0.75 in the fourth quarter of 2014.
• Underwriting loss of $3.6 million for the quarter compared to underwriting income of $7.6 million in the fourth quarter of 2014.
• Combined operating ratio of 104% compared to 90% in the fourth quarter of 2014.
• A 72% increase in direct written premiums over the same period in 2014 to $135.3 million primarily driven by growth in the International division.
• Total pre-tax return on invested assets of $8.4 million in the quarter compared to a pre-tax return of $6.8 million in the fourth quarter of 2014.
• An increase in book value per share of 1.3% in the quarter to $15.75 per share.

“We’re very pleased with the continued strong performance of our Canadian operations,” said Steve Dobronyi, Chief Executive Officer.  “Both Personal and Commercial businesses continue to exceed our target profitability, with combined ratios of 90% and 78% respectively for the quarter.  Our Canadian business is consistently profitable with Personal Lines having now delivered an underwriting profit in 19 of the past 21 quarters and Commercial Lines 7 in a row.”

“However, these great results are offset by a $6.8 million underwriting loss in the International segment,” he continued.  “The underwriting loss is primarily due to prior period reserve changes and one-time charges on cancelled programs.”

“We are now four years into our journey in Europe and premium volumes have met the business plan.  However, underwriting profitability has fallen short of expectations as the mix of business has drifted too heavily toward the less proven UK motor business.  We are currently reviewing the strategy and the future of our International operations and our Company’s capital allocation plans.  At the same time, we continue to implement the previously announced measures to reduce our exposure to UK motor premiums and deliver consistent underwriting profitability in Europe.”

Dividend

The Board of Directors declared a quarterly dividend of $0.12 per outstanding common share.  The dividend is payable on April 1, 2016, to shareholders of record on March 10, 2016.

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.

Fourth Quarter Review

Net operating income of $0.2 million or $0.01 per share was recorded in the quarter, compared to $9.0 million or $0.75 per share in the fourth quarter of 2014.  The decrease was due to an underwriting loss of $3.6 million compared to underwriting income of $7.6 million for the same period in 2014.

Personal Lines generated underwriting income of $3.3 million compared to $5.5 million in the same period last year, due to a small number of large losses in personal property in Western Canada.

Commercial Lines generated underwriting income of $2.2 million compared to $2.0 underwriting income in the same period last year driven by improved results in Atlantic and Western Canada

The International segment generated an underwriting loss of $6.8 million compared to an income of $1.3 million in the same period last year, primarily due to $5.7 million of underwriting losses on programs provided with notice of cancellation, including the UK learning driver telematics program. This included one time adjustments of $2.0 million that were recorded for premium deficiencies, additional internal adjustment expenses and reserve recoveries related to the cancelled programs. Scandinavian warranty performance continues to perform at an 87% combined ratio.

Direct written premiums increased by 72%, attributable primarily to a $58.1 million or 170% growth in the International division.

Investment income was $6.8 million compared to an income of $6.4 million in the fourth quarter of 2014.   The total pre-tax return on invested assets was $8.4 million in the quarter compared to $6.8 million in the fourth quarter of 2014.  The fair value of Echelon’s investment portfolio, including finance receivables, was $550 million, a 2% increase from the fourth quarter of the prior year. This was driven by strong performance of preferred shares in the quarter.

On a consolidated basis, a net favourable development of prior year claims of $8.1 million was recorded in the fourth quarter of 2015 compared to favourable development of $0.9 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

Twelve-Month Review

Net operating income of $9.0 million or $0.76 per share was recorded compared to $16.9 million or $1.40 per share for the same period in 2014.  The decrease is related to poorer International results.

An underwriting loss of $6.1 million was reported compared to income of $4.9 million for the same period in 2014, driven by strong results in Commercial lines, offset by poor performance on UK auto cancelled programs in the International segment.

Direct written premiums increased by 36%, attributable primarily to a $118.1 million or 66% growth in the International division.

Investment income was $13.9 million compared to $24.3 million in 2014 primarily due to market losses on Canadian preferred shares.  Total pre-tax return on invested assets was $13.6 million compared to $26.8 million in the same period of 2014.  The fair value of Echelon’s investment portfolio, including finance receivables, was $550 million, down 2% from the fourth quarter of the prior year.

Operating expenses incurred in 2015 increased by 11% over the prior year, in line with the 12% increase in net earned premiums.

On a consolidated basis, a net favourable development of prior year claims of $17.9 million was recorded in the twelve months ended December 31, 2015 compared to favourable development of $11.3 million in the same period in 2014.

Capital Management

All regulated entities remain well-capitalized. The Minimum Capital Test (MCT) ratio of EFH’s Canadian subsidiary, Echelon Insurance, as at December 31, 2015, was 241%, which comfortably exceeds the supervisory regulatory capital level required by the Office of the Superintendent of Financial Institutions (OSFI). ICPEI’s MCT ratio of 296% was in excess of provincial supervisory targets. The Company’s European subsidiary, Qudos, had a Danish Financial Services Authority (DKFSA) Individual Solvency ratio of 122%, in excess of the DKFSA target.

In addition to excess capital at Echelon Insurance, the Company has approximately $11 million of excess deployable capital invested in liquid assets in the holding company.

For the twelve months ended December 31, 2015, total shareholders’ equity increased by $1.1 million to $184.7 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 Thursday, February 18, 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 27533328.  A live audio feed of the call will be available online through the Company’s website at www.echelon-insurance.ca, or directly at http://event.on24.com/r.htm?e=1119899&s=1&k=22C2D2145D0D2D51659FC92BB97ECB55

A replay of the call will be available until February 25, 2016.  To access the replay, call 416-849-0833, or toll free 1-855-859-2056, enter password 27533328

About Echelon Financial Holdings Inc.

Founded in 1997, 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, May 10, 2017 – Echelon Financial Holdings Inc. (“Echelon”) (TSX: EFH) today announced the voting results for the election of its board of directors at its annual general meeting of shareholders on May 9, 2017.

Eight nominees listed in Echelon’s management information circular dated March 10, 2017, were elected as directors.  As previously reported, Dan Courtemanche, for personal reasons, withdrew his name as nominee shortly before the annual general meeting.  The detailed results of the vote held at its AGM, are set out below.

The resolution to re-appoint PricewaterhouseCoopers LLP as the auditors of the Corporation was carried.

Serge Lavoie, CEO of Echelon, thanked the departing directors, Rob Purves, Peter Crawford, Angus Ross and Ani Hotoyan-Joly for their valuable contributions during their service as director.

About Echelon Financial Holdings Inc.

Founded in 1998, Echelon operates in the property and casualty insurance industry in Canada, providing personal and commercial lines insurance exclusively through the broker channel. The Company operates and 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.

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

TORONTO, Oct. 30, 2018 /CNW/ – Echelon Financial Holdings Inc. (TSX: EFH) today announced that it will release its third quarter financial results after market close on Wednesday, November 14, 2018.

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.

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

TORONTO, August 6, 2019 – 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 income of $55.6 million or $4.55 per diluted share, for the three months ended June 30, 2019. These results included net income on discontinued operations of $55.4 million or $4.54 per diluted share. Net Income on continued operations was $0.2 million or $0.01 per diluted share for the three months ended June 30, 2019.

Second Quarter 2019 Highlights

• The sale of Echelon Insurance and the unregulated warranty business of Echelon Financial Holdings Inc. was completed on May 31, 2019. The gain on sale, net of expenses and taxes, was $56.2 million. The operations of discontinued businesses to the closing of May 31, 2019 lost $0.8 million in the second quarter. Net income on Discontinued Operations in this quarter were $55.4 million.
• Net Income of $4.55 per diluted share compared to an income of $0.33 per diluted share in the second quarter of 2018. Net Income on continued operations of $0.01 per share compared to a loss of $0.02 per share in the second quarter of 2018.
• Direct written premiums increased by $0.5 million over the same period in 2018 to $11.0 million as the Company is cautious in writing business while it is awaiting implementation of rate increases.
• Closing book value per share of $7.48 has decreased, despite Net Income per share of $4.55 for the quarter because the Company paid a dividend of $8.80 per share in this quarter.

Financial Summary

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, 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 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:

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

TORONTO July 15, 2021 – EFH Holdings Inc. (“EFH” or the “Company”) (TSXV: EFH) is reporting that at the July 15, 2021 Annual General and Special Meeting of Shareholders (the “Meeting”) a special resolution was approved to change the name of the Company to “ICPEI Holdings Inc.”  The name change is subject to standard regulatory approvals and will be effective upon the filing of Articles of Amendment. The TSXV stock symbol will be changed and the new symbol will be announced once Exchange approval is received.

At the Meeting the Company shareholders elected James Falle, Robert Ghiz, Serge Lavoie, Sharon Ranson and Murray Wallace as directors.

At the Meeting the Company’s shareholders also approved the EFH Stock Option Plan and the EFH Share Unit Plan as presented. TSXV rules require the yearly approval by shareholders of the Stock Option Plan and Share Unit Plan.

The Company’s financial results for Q2 2021 will be reported in August 2021.

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 EFH Holdings Inc.

Founded in 1998, EFH 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. The Company’s name was changed from Echelon Financial Holdings Inc. to EFH Holdings Inc. after receiving approval from shareholders on December 11, 2020. It trades on the TSX Venture Exchange under the symbol EFH 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, March 22, 2016 /CNW/ – Echelon Financial Holdings Inc. (“Echelon Insurance” or the “Company”) (TSX: EFH) today announced the appointment of a financial advisor to the previously announced Special Committee of the Board of Directors for the purposes of exploring a structured divestiture process of the Company’s International business. The Committee and its financial advisor are considering a broad range of options and the process may not result in any transaction.

Given the nature of the process, the Company does not intend to provide further updates until such time as the Board of Directors approves any specific transactions, the review process is concluded, or the Board of Directors otherwise determines that further disclosure is advisable.

About Echelon Insurance

Founded in 1998, Echelon Insurance 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.

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

TORONTO, August 9, 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 $3.1 million, or $0.26 per diluted share, for the three months ended June 30, 2017.

All operating results below refer to continued operations.

Second Quarter 2017 Highlights

• Net operating income on continued operations of $0.28 per share compared to income of $0.24 per share in the second quarter of 2016, an increase of 17%.
• A combined operating ratio of 94% compared to 98% in the second quarter of 2016 driven by strong results in Personal Auto and Commercial Property and Liability.
• A 25% increase in direct written premiums over the same period in 2016 to $85.0 million as a result of growth in existing products in Ontario and Quebec Personal Lines, in addition to Commercial Lines products launched in 2016.
• Total pre-tax gain on invested assets of $0.1 million in the quarter, negatively impacted by higher short-term bond yields, compared to a pre-tax gain of $5.1 million in the second quarter of 2016.
• Closing book value per share of $12.25, an increase of 1.2% over the first quarter of 2017.

“We are pleased with the results for the quarter with strong results reported in both Personal and Commercial lines”, commented Serge Lavoie, Chief Executive Officer.

“Our product suite continues to be well received by our brokers, with Direct Written Premiums increasing by 27% in the first half of the year compared to 2016”, he continued. “As we complete the roll out of our new policy management system, we look forward to enhancing our services and to further build our relationships with our brokers across Canada. In British Columbia, we continue to work closely with our brokers and customers to manage the impact of the ongoing wildfires in the region”.

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.

Second Quarter Review

The Company reported net operating income of $3.3 million or $0.28 per share in the quarter, compared to income of $2.9 million or $0.24 per share in the second quarter of 2016, an increase of 17%.

Direct written premiums increased by 25% to $85.0 million, primarily due to growth in both Quebec and Ontario Personal lines and the launch of Commercial lines products in 2016.

Personal Lines generated underwriting income of $1.4 million compared to an underwriting loss of $0.6 million in the same period last year, primarily due to strong performance in Ontario auto and overall in the Western region partially offset by weaker performance in Atlantic Canada related to large losses.

Commercial Lines generated an underwriting income of $2.1 million compared to a $1.6 million underwriting income in the same period last year, driven by strong performance in Commercial Property and Liability lines.

Investment income was $3.0 million compared to $4.9 million in the second quarter of 2016.  The total pre-tax gain on invested assets was $0.1 million in the quarter, negatively impacted by higher short-term bond yields, compared to a pre-tax gain of $5.1 million in the second quarter of 2016.  The fair value of Echelon’s investment portfolio, including finance receivables, was $440 million.

Net favourable development of prior year claims of $7.8 million was recorded in the second quarter of 2017, compared to favourable development of $7.3 million in the same period in 2016.

Operating Results

⁽¹⁾     Excluding head office overhead costs

Six-Month Review

The Company reported net operating income of $5.7 million or $0.47 per share compared to $3.9 million or $0.33 per share for the same period in 2016, an increase of 42%.

Direct written premiums increased by 27%, attributable to continued growth in Personal and Commercial lines, and portfolio transfers from existing and new brokers.

Personal Lines generated underwriting income of $3.2 million compared to an underwriting income of $0.2 million in the same period last year, primarily due to strong performance in Ontario auto and the Western region.

Commercial Lines generated an underwriting income of $3.1 million compared to $0.8 million in the same period last year, predominantly due to strong performance in commercial property and liability.

Investment income was $11.5 million compared to $8.9 million in 2016, due to stronger performance of the preferred share portfolio and realized foreign exchange gains arising on investment hedges from the sale of the European operations in the first quarter of 2017, partially offset by weak fixed income performance due to rising bond yields in the second quarter of 2017. The total pre-tax return on invested assets was $5.2 million compared to $4.5 million in the same period of 2016.

Operating expenses incurred in 2017 increased by 7% over the prior year to $15.6 million, due to higher information technology costs.

Net favourable development of prior year claims of $11.1 million was recorded in the six months ended June 30, 2017 compared to favourable development of $9.3 million in the same period in 2016.

Capital Management

All related entities remain well capitalized.  The Minimum Capital Test (MCT) ratio of EFH’s Canadian subsidiary, Echelon Insurance, as at June 30, 2017, was 242%, which comfortably exceeds the supervisory regulatory capital level required by the Office of the Superintendent of Financial Institutions (OSFI).  ICPEI’s MCT ratio of 340%  was in excess of provincial supervisory targets.

The Company has approximately $16.5 million of excess deployable capital invested in liquid assets at the holding company.  All regulated entities remain well-capitalized.

For the six month period ended June 30, 2017, total shareholders’ equity increased by $7.6 million to $145.1 million from December 31, 2016.

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.

Change in Compensation

Following a review of senior management compensation, the Company has revived its stock option compensation plan, effective June 29, 2017.  Stock options will be issued to senior management, at the discretion of the Board and within the parameters of the stock option plan outlined in the Company’s Management Information Circular, dated March 10, 2017.

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 2017 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 Thursday, August 10, 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 51025865.  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 August 17, 2017.  To access the replay, call 416-849-0833, or toll free 1-855-859-2056, password 51025865.  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, providing personal and commercial lines insurance exclusively through the broker channel. The Company operates and 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:

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

MISSISSAUGA, ON and RICHMOND HILL, ON (November 9, 2018) – Echelon Financial Holdings Inc. (“EFH” or the “Company”) (TSX: EFH) and CAA Club Group (“CAA”) announced today that they have entered into a definitive agreement (the “Agreement”) for EFH to sell Echelon Insurance, the Company’s main operating subsidiary that is incorporated under the Insurance Companies Act, and the unregulated warranty business held directly by EFH (together, the “Business”) to CAA for $175 million (the “Purchase Price”), payable in cash.

The announcement of the Agreement follows an extensive strategic review process overseen by a committee of EFH’s Board of Directors comprised exclusively of independent directors (the “Special Committee”). In its review, the Special Committee considered numerous alternatives and recommended to EFH’s Board of Directors that the sale of the Business to CAA is in the best interest of the Company.

Murray Wallace, Chairman of EFH’s Board of Directors commented, “We are excited about the sale of Echelon Insurance as it produces an attractive outcome to the shareholders of EFH and the continuation of employment for our staff. The success of this transaction can be directly attributed to the vision and commitment of the Echelon Insurance management team and staff who in 2015 implemented a strategy to develop multiple personal and commercial insurance lines of business across the country. We believe that CAA will enable Echelon Insurance to reach the next level of service for its brokers and customers.”

“The acquisition of Echelon Insurance represents an exciting opportunity to expand CAA Club Group’s insurance product offering into non-standard auto, property, and commercial insurance,” said Jay Woo, President and CEO of CAA Club Group. “CAA is committed to the success of its independent insurance brokers, and is excited to offer them new products to meet their customers’ needs. CAA looks forward to inviting Echelon Insurance’s brokers into one of Canada’s most trusted brands, and supporting them with industry-leading IT systems, support and infrastructure. CAA will continue to give brokers the transparency, tools and fairness they need to grow their business.”

Agreement Details

After considering the recommendation of the Special Committee, EFH’s Board of Directors has determined that the Agreement is in the best interest of the Company, and has unanimously approved entering into the Agreement. EFH’s Board of Directors recommends that shareholders vote in favour of approving the Agreement at a special shareholder meeting expected to be held in January 2019 (the “Meeting”).

The Purchase Price of $175 million represents a 42% premium to the book value of Echelon Insurance as at June 30, 2018. Pursuant to the terms of the Agreement, EFH has committed to deliver Echelon Insurance to CAA with a Minimum Capital Test (“MCT”) ratio of 220% at closing. In addition, CAA will assume up to $4 million of EFH’s transaction expenses in relation to the Agreement.

National Bank Financial Inc. and Blair Franklin Capital Partners Inc. provided opinions to EFH’s Board of Directors and EFH’s Special Committee, respectively, that the consideration pursuant to the Agreement is fair, from a financial point of view, to EFH.

Shareholder Approval and Other Considerations

The Agreement is subject to the approval of at least 66⅔% of EFH shares voted in person or by proxy at the Meeting. Certain shareholders including EdgePoint Investment Group, Cymbria Corporation, Foyston, Gordon & Payne Inc., Franklin Templeton Investments Corp., and the directors and senior officers of the Company, together representing over 50% of the Company’s outstanding common shares (calculated on a non-diluted basis), have entered into voting support agreements with CAA pursuant to which they have agreed to vote their shares in favour of the Agreement. Such voting agreements can be terminated in certain circumstances.

Completion of the Agreement is subject to customary conditions including receipt of shareholder approval, required insurance regulatory approvals and Competition Act approval.

The Agreement includes non-solicitation covenants, as well as customary fiduciary protections including the ability to consider and support a superior proposal with respect to the Business or the Company (a “Superior Proposal”). CAA will have five business days to match any Superior Proposal. EFH will be required to pay a break fee of $6.1 million in the event the Board accepts or supports a Superior Proposal.

The terms and conditions of the Agreement will be disclosed in greater detail in EFH’s information circular (the “Information Circular”) that is anticipated to be mailed to shareholders in December 2018. In the event of a postal strike that prevents mailing, EFH intends to discuss other options with its regulators and issue a further news release as necessary. It is expected that the proposed Agreement will be completed in the first half of 2019 once all required approvals are obtained.

Copies of the Agreement and of the Information Circular for the Meeting will be filed with Canadian securities regulators and will be available on the SEDAR profile of EFH at www.sedar.com. In addition, EFH shareholders may obtain free copies of the Agreement and of the Information Circular by writing to Echelon Financial Holdings Inc., 2680 Matheson Boulevard East, Suite 300, Mississauga, Ontario, L4W 0A5 Attention: Corporate Secretary. EFH shareholders are urged to read the Information Circular and the other relevant materials when they become available as such materials will contain important information regarding the Agreement.

Remaining Assets of EFH

EFH continues to own a 75% interest in its other active subsidiary, the Insurance Company of Prince Edward Island (“ICPEI”). ICPEI is a leading provider of personal and business insurance sold exclusively through a network of 17 brokers in 68 offices across all three of Canada’s Maritime provinces. In the coming months, EFH expects to work collaboratively to assist ICPEI in setting up stand-alone operations in order to ensure business continuity including supporting its broker partners after the closing of the sale of the Business.

Based on EFH’s reported balance sheet as at June 30^th, 2018 and excluding the contribution from the Business, EFH estimates that at such date it had approximately $30 million in net tangible assets in addition to its 75% interest in ICPEI which had an equity book value of approximately $10 million. EFH intends to review its alternatives to return capital to its shareholders and will assess other value maximization alternatives for its remaining assets in due course. EFH will provide supplementary details in the Information Circular and will provide updates to the stakeholders as appropriate.

Advisors

National Bank Financial Inc. acted as the exclusive financial advisor to Echelon Financial Holdings in connection with the strategic review process and the Agreement. National Bank Financial Inc. and Blair Franklin Capital Partners provided opinions to EFH’s board of directors and EFH’s Special Committee, respectively, that the consideration pursuant to the Agreement is fair, from a financial point of view, to EFH. McCarthy Tétrault LLP acted as legal advisor to EFH. Cassels Brock & Blackwell LLP acted as insurance regulatory counsel to EFH. Stikeman Elliottt LLP acted as legal advisor to CAA Club Group.

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.

About CAA Club Group

For over a hundred years, CAA has been helping Canadians stay mobile, safe and protected. The CAA Club Group of Companies is comprised of two automobile clubs, CAA South Central Ontario and CAA Manitoba, providing roadside assistance, travel, insurance service and Member savings for over 2.2 million members. It also includes the CAA Insurance Company, a national property and casualty insurance company, and the Orion Travel Insurance company.