Legislative Building - Regina, Canada S4S 0B3 - (306) 787-6281 News Release
November 2, 2000
SGI - 715
SGI PARTNERS WITH PEI FIRM
SGI CANADA has partnered with the Insurance Company of Prince Edward Island (ICPEI) to continue expansion into other Canadian provinces.
For an investment of $2.7 million, SGI CANADA has purchased 75 per cent of the shares of ICPEI.
ICPEI is based in Charlottetown and is the sixth largest property and auto insurer in PEI. A.M. Best, Canada's leading independent assessor of insurance companies, has rated ICPEI with the highest possible solvency rating. ICPEI was incorporated in 1987. It has had an underwriting profit every year since it began writing business in 1993. This is exceptional, given that the industry as a whole has recorded underwriting losses every year since 1979. Both measures demonstrate the success of ICPEI. ICPEI President Charlie Cooke has been in the insurance business for 42 years.
"We've been actively involved in this business transaction. SGI CANADA is a solid insurance company that's been in business since 1945. They are the largest insurance company in Saskatchewan and have a terrific track record. With support from their experienced staff and the resources at their disposal, especially in terms of underwriting, systems and reinsurance support, we'll be able to provide even better service to our customers," Cooke said.
"Partnering with Mr. Cooke through ICPEI means we can combine that company's wealth of experience and knowledge of their particular insurance market with our systems, underwriting and reinsurance expertise to successfully grow the business in PEI and, over the longer term, throughout the Maritime provinces," SGI President Larry Fogg said.
"Continued expansion means new jobs will be created in Regina's head office, our insurance risk will become less concentrated and we'll be able to generate a higher rate of return for Saskatchewan shareholders."
The shares were purchased from CGU Group Canada Ltd., part of the largest property and casualty insurance group in Canada.
"The long term strategy of expansion into the other Atlantic provinces through ICPEI simply didn't fit with our own business plans as CGU already has a presence in the other Atlantic provinces. It's a win-win situation for all three of our companies," CGU President Mark Webb said.
SGI CANADA's expansion into other provinces through its subsidiary SGI CANADA Insurance Services Ltd. (SCISL) has been very successful. SCISL currently operates in Manitoba and Ontario and with its growth rate of about 10 per cent a year has become one of the top 15 insurance companies in Manitoba over the past seven years.
For further information, contact:
SGI ICPEI CGU
Barbara Cross Charlie Cooke Lorne Browne Communications
President Senior Vice President Regina
PEI Atlantic Canada
(306) 751-1360 (902) 626-4800 (902) 460-3136