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Press release from CNW Group


Monday, September 27, 2010

EGI FINANCIAL ANNOUNCES RATE INCREASE APPROVAL08:00 EDT Monday, September 27, 2010TORONTO, Sept. 27 /CNW/ - EGI Financial Holdings Inc. (TSX: EFH) announced today that its subsidiary, Echelon General Insurance Company, has received approval from the Financial Services Commission of Ontario for changes to its rates and maximum allowable policy term for private passenger automobile insurance. The changes will apply in Ontario to new business from November 1, 2010, and for renewal business from December 1, 2010.The approved rate increase averages 7.0%. This rate increase will largely offset an earlier rate decrease, which became effective on September 1, 2010, which had been required under Ontario automobile insurance reforms. The premium payable in Ontario for the maximum policy term of six months will include a 5% loading for administration costs. This is a new revenue stream for Echelon, which will result in recording an additional 10% of the annual premium in Ontario for each 12 month period. << About EGI Financial ------------------- >> Founded in 1997, EGI Financial operates in the property and casualty insurance industry in Canada and the United States, primarily focusing on non-standard automobile insurance and other niche and specialty general insurance products. EGI Financial's common shares are traded on the Toronto Stock Exchange under the symbol EFH. << 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 EGI Financial for 2010 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 EGI Financial's control, affect the operations, performance and results of EGI Financial and its business, and could cause actual results to differ materially from the expectations expressed in any of this forward-looking information.EGI Financial does not undertake to update any forward-looking information, except as required by law. Additional information about the risks and uncertainties about EGI Financial's business is provided in its disclosure materials, including its annual information form, filed with the securities regulatory authorities in Canada, available at 00022868EFor further information: Douglas E. McIntyre, Chief Executive Officer, EGI Financial Holdings Inc., Telephone: 905-214-7880,