TORONTO, Jan. 13, 2006 (PRIMEZONE) -- Boyd Soussana, Chief Executive Officer of Reliant Home Warranty Corporation (OTCBB:RHWC), announces the conditional grant of registration status to RHWC's wholly owned insurance subsidiary Reliant Insurance SCC.
With this development the RHWC consortium of strategic partners made up of Dundee Securities Inc. (Fiscal Advisor), Sodha Associates (International Insurance Counsel), Brit Insurance (Global Reinsurer), Mpire Credit Corporation (Mortgage Brokerage), First National Financial Corporation (Title Insurance and Escrow Service) have launched their activities with a view to dominating this segment of the Canadian mortgage marketplace during the spring of 2006. Negotiations with one of the largest Canadian banks over its role as Warehouse Funder are ongoing.
Soussana released financial projections for RHWC which reflect the potential for the Canadian market:
-- 1st Year profit of 12 million net before tax on revenues of
750 million USD.
-- 2nd Year profit of 18 million net before tax on revenues of
1.2 billion USD.
-- 3rd Year profit of 30 million net before tax on revenues of
2 billion USD.
It is projected that U.S. market penetration, when it occurs, will augment revenue and profit by a third.
To manage the magnitude of this projected volume and impending launch of RHWC's innovative mortgage and related insurance programme to Canadian financial markets Soussana announced the appointment of three senior officers to the RHWC Mortgage Solutions affiliate management group.
Mic Cavanagh will assume the oversight role of President at Solutions, the RHWC service affiliate. Bringing with him over three decades of senior management responsibility and entrepreneurial success in the mortgage industry, he is uniquely qualified to direct the domestic roll out of RHWC's products.
Cavanagh will be located at the RHWC's Toronto head office with two newly appointed Business Development Managers who will join RHWC in senior marketing capacities. Each have had extensive careers in the Canadian mortgage industry and have been hired to exploit the potential of the RHWC product line. All three executives have entered into innovative employment agreements that will maximize shareholder value.
The RHWC Solutions affiliate will operate as a fully licenced entity in each provincial and state jurisdiction where it does business.
For more information on the Reliant programs visit the Web site at www.relianthwc.com.
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Any statements that express or involve discussion with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical facts may be forward-looking statements. Forward-looking statements are based on expectations, estimates and projections at the time the statements are made to involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. For a summary of such risks and uncertainties, see the Company's periodic reports and other filings with the Securities and Exchange Commission.