EGI Financial Holdings Inc. announced Friday that its wholly owned subsidiary, Echelon General Insurance Co., is entering the Ontario motorcycle insurance market with a $5 million brokerage agreement with Riders Plus Insurance.

Riders Plus, Ontario’s largest motorcycle insurance brokerage, has agreed to place $5 million of motorcycle insurance premiums with Echelon in the first 12 months following the start of sales under the agreement, scheduled to begin on January 15.

The brokerage commission terms under the agreement are comparable to Echelon’s existing private passenger automobile insurance agreements, except that Riders Plus will be paid an expense allowance on new policies, as compensation for their expanded internal underwriting processes.

“Our agreement with Riders Plus marks Echelon’s first major move in Ontario into a broader range of vehicle types, while staying within our specialty auto niche,” said Douglas McIntyre, CEO of Echelon. “Riders Plus brings significant underwriting expertise and distribution capability. They are by far the recognized leader in this market.”

The Financial Services Commission of Ontario approved Echelon’s Ontario motorcycle insurance rules and rates on January 6, 2006.

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