A.M. Best Affirms Ratings of Echelon General Insurance Company and EGI Financial Holdings Inc.

OLDWICK, N.J.--(Business Wire)--
A.M. BestCo. has affirmed the financial strength rating of B++ (Good) and issuer
credit rating (ICR) of "bbb+" of Echelon General Insurance Company (Echelon
General) (Mississauga, Ontario). Concurrently, A.M. Best has affirmed the ICR of
"bb+" of Echelon General`s publicly traded parent, EGI Financial Holdings Inc.
(EFH) (Mississauga, Ontario). The outlook for all ratings is stable.

The ratings for Echelon General are reflective of its strong risk-adjusted
capitalization, historical profitability, improving product line and geographic
diversification, experienced management team in the non-standard auto and niche
product markets as well as the additional financial flexibility of EFH.

These rating strengths are partially offset by the company`s weakened
capitalization, diminished earnings, concentration in the volatile Ontario auto
market and strong competitive market pressures.

Echelon General`s capitalization has been weakened by realized and unrealized
investment losses, adverse development on its emergency travel health insurance
and higher than expected losses on its motor cycle business. A.M. Best also is
concerned about potential regulatory changes to the Ontario auto insurance
product and what impact this may have on the company`s future earnings. However,
the balance sheet remains strong, and Echelon General`s management team has many
years of experience in the non-standard auto business.

The rating for EFH is based on the overall financial strength of its operating
companies and the subordination of the holding company`s creditors to the
operating companies` policyholders. In addition to Echelon General, EFH is the
parent of CIM Reinsurance Company Ltd., a captive Barbados reinsurer.
Furthermore, EFH has been granted preliminary regulatory approval in Florida to
establish Echelon Insurance Company of America as a vehicle for growing business
in the non-standard auto market in the United States. A.M. Best will closely
monitor the growth and progress of these companies and their impact on the
overall financial strength of the organization.

For Best`s Ratings, an overview of the rating process and rating methodologies,
please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any
additional methodologies and factors that may have been considered, can be found
at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating
organization dedicated to serving the financial and health care service
industries, including insurance companies, banks, hospitals and health care
system providers. For more information, visit www.ambest.com.

A.M. BestCo.
Analysts:
Charles M. Huber, 908-439-2200, ext. 5122
charles.huber@ambest.com
Joseph A. Burtone, 908-439-2200, ext. 5125
joseph.burtone@ambest.com
or
Public Relations:
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com

Copyright Business Wire 2009