EGI Financial Holdings Inc. says it has entered into a non-revolving term credit facility with The Bank of Nova Scotia in the amount of US$20 million.

The facility may be increased to up to US$40 million, subject to satisfaction of certain conditions.

The initial draw down of US$20 million will be used by EGI Financial to increase the capital of its subsidiary, CIM Reinsurance Company Ltd. (CIM Re). CIM Re is a Barbados-based reinsurance company that will be used to reinsure selected niche and specialty line insurers, which underwrite business in the United States.

“We anticipate this facility will provide us with the flexibility needed to support the planned expansion of our U.S. reinsurance business and to continue our profitable growth in Canada.” commented Douglas McIntyre, president and CEO of EGI Financial, in a news release.

In addition, EGI Financial announced the formation of its United States-based subsidiary, EGI Insurance Services, Inc. and the subsequent appointment of Jjm Cizek as the company’s inaugural president and CEO.

“With over 30 years experience in the insurance industry, Jim has proven leadership skills and a strong background in strategic planning, marketing, product development, claims and underwriting. He brings demonstrated expertise in managing growth oriented non-standard auto and niche lines insurance organizations, which will greatly benefit EGI Financial as we move forward with planned expansion initiatives in the United States,” added McIntyre.

EGI Insurance Services, Inc. will employ a small group of experts in niche and specialty insurance lines. The company will perform initial due diligence and ongoing monitoring of potential reinsurance clients on behalf of its sister company CIM Re.

Founded in 1997, EGI Financial operates in the property and casualty insurance industry in Canada and the U.S., primarily focusing on non-standard automobile insurance and other niche and specialty general insurance products.