Frédérique De Simone
1 August 2019 13:30
Serge Lavoie is no longer president ofEchelon Insurance. The Journal of insurance has attempted to learn more about the reasons for his departure. Our call to the insurer is left without a response. Robin Joshua will replace it, however, has announced Step Financial Holdings (EFH), July 31. Prior to joining Echelon, Mr. Robin was responsible for the business development and risk management for CAA Insurance , and Orion Insurance.
Sale price downward
In addition, EFH will collect less under than expected, to the result of the sale of Echelon Insurance. The holding company has not complied with all the terms and conditions for the sale of its main subsidiary, Echelon Insurance at CAA Club Group, which concluded at the end of the month of may.
Initially, EFH has agreed to sell Echelon Insurance at a sale price of $ 175 million dollars (M$). However, to pay this sum, CAA Club Group has been asked to Step Assurance that its solvency ratio, as calculated under the test’s minimum capital issued by the Office of the superintendent of financial institutions (OSFI), or 220 % as at 31 may. However, this threshold has not been maintained in time, despite the payment of a sum of$ 8 Million in a trust fund.
Therefore, the amount of the transaction is lowered. The selling price of Echelon Insurance oscillates around 170.3-in M$, without counting the expenses relating to the costs of this operation.
End of a legal dispute in Denmark
EFH has also put behind it a case filed against him following the sale of its insurance activities in Europe. An arbitration procedure had been initiated in September 2018, in Denmark, between Step Financial Holdings to the New Nordic Advisors Limited. The New Nordic alleged that false statements were made by Step, to the time that it has sold Qudos insurance.
Although the contract for the sale of shares provides that they are not transferable, the New Nordic has indicated that it would the shares to a third party, which has initiated the arbitration. The arbitration panel Danish, however, has completely dismissed the proceedings, holding that the third party had no standing to take actions.
“After a thorough and complete review of the company’s position and an open dialogue with the regulator [the New Nordic has] decided to place Qudos permanently in liquidation and liquidate the remaining assets,” said Nicolai Borcher Hansen, general manager of New Nordic, in November.
Qudos insurance is in bankruptcy since December.