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Media announcement - CGI signs US$115 million, ten year contract with Magnolia Insurance Company to provide business process outsourcing services
(Canada Newswire English Via Acquire Media NewsEdge) Attention Business/Financial Editors
Stock Market Symbols
GIB.A (TSX)
GIB (NYSE)
ANDOVER, MA, May 7 /CNW Telbec/ - CGI Group Inc. (TSX: GIB.A; NYSE: GIB), a global leader in information technology and business process services, announced today that is has signed a ten-year, US$115 million contract with Magnolia Insurance Company to provide back-office services including complete policy administration, billing and accounting, claims administration, statistical reporting, and statutory accounting services. Magnolia will begin with an assumption of a book of homeowner's policies from Citizens Property Insurance Corporation in the State of Florida and will begin writing new insurance by September.
"We're excited about this opportunity," James Irl, President and CEO of Magnolia explained, "Magnolia will partner with CGI to use cutting edge technology to lower costs and improve our communications with our agents and policyholders. Using CGI's technology and experienced staff, we expect to be very competitive in the Florida Homeowners market ". Magnolia made this decision based on CGI's full-range of capabilities and their track record of success in ventures of this type. He added, "CGI's partnership approach makes it easy to do business with them and provides us the flexibility to support the changing needs of our clients and to expand into new markets quickly."
Paul Raymond, Senior Vice-President of CGI's New England and Insurance Services business unit, added: "Magnolia is filling a need in Florida's insurance market. CGI is committed to providing quality services to their agents and policyholders. Magnolia benefits from CGI's ability to provide small- to medium-size insurance companies, with the technology and service capabilities they traditionally wouldn't be able to create on their own."
About Magnolia Insurance
Beginning operations in 2008, Magnolia's experienced team of insurance professionals began with an initial investment of $20 million in surplus funds. This capital commitment allows Magnolia to initially assume 60,000 policies from Citizens Property Insurance Corporation as well as to write new Florida homeowners policies in a market in need of new capacity. Website: www.magnoliainsurance.us.
About CGI
Founded in 1976, CGI Group Inc. is one of the largest independent information technology and business process services firms in the world. CGI and its affiliated companies employ approximately 27,000 professionals. CGI provides end-to-end IT and business process services to clients worldwide from offices in Canada, the United States, Europe, Asia Pacific as well as from centers of excellence in North America, Europe and India. CGI's annual revenue run rate stands at $3.8 billion and at March 31st, 2008, CGI's order backlog was $12.04 billion. CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB) and are included in the S&P/TSX Composite Index as well as the S&P/TSX Capped Information Technology and MidCap Indices. Website: www.cgi.com.
Forward-Looking Statements
All statements in this press release that do not directly and exclusively relate to historical facts constitute "forward-looking statements" within the meaning of that term in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended, and are "forward-looking information" within the meaning of sections 138.3 and following of the Ontario Securities Act. These statements and this information represent CGI's intentions, plans, expectations and beliefs, and are subject to risks, uncertainties and other factors, of which many are beyond the control of the Company. These factors could cause actual results to differ materially from such forward-looking statements or forward-looking information. These factors include and are not restricted to the timing and size of new contracts, acquisitions and other corporate developments; the ability to attract and retain qualified members; market competition in the rapidly-evolving IT industry; general economic and business conditions, foreign exchange and other risks identified in the MD&A, in CGI's Annual Report on Form 40-F filed with the U.S. Securities and Exchange Commission (filed on EDGAR at www.sec.gov), the Company's Annual Information Form filed with the Canadian securities authorities (filed on SEDAR at www.sedar.com), as well as assumptions regarding the foregoing. The words "believe," "estimate," "expect," "intend," "anticipate," "foresee," "plan," and similar expressions and variations thereof, identify certain of such forward-looking statements or forward-looking information, which speak only as of the date on which they are made. In particular, statements relating to future performance are forward-looking statements and forward-looking information. CGI disclaims any intention or obligation to publicly update or revise any forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law. Readers are cautioned not to place undue reliance on these forward-looking statements or on this forward-looking information. You will find more information about the risks that could cause our actual results to significantly differ from our current expectations in the Risks and Uncertainties section.
Investors: Lorne Gorber, Vice-President, Global Communications and Investor Relations, (514) 841-3355; Media: Linda Odorisio, Vice President, U.S. Communications, (703) 227-6161
Copyright ? 2008 Canada Newswire Ltd. All Rights Reserved.
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