SASKATOON – Saskatchewan Government Insurance (SGI) Canada announced Friday it’s pulling out of the Maritimes and has its sights set on the west coast.
For the past two decades, SGI has been expanding its business to other provinces.
The company has now decided to sell its 75 per cent stake in the Insurance Company of Prince Edward Island (ICPEI).
ICPEI is the largest Maritime province-based insurer in Canada that provides automobile, home and commercial insurance.
SGI is in the process of selling to the publically-traded EGI Financial Holdings Inc. for an estimated $10 million along with an additional $3.5 million to license the use of SGI’s computer systems.
The transaction is expected to close this summer.
None of SGI Canada’s employees supporting ICPEI will lose their jobs or have to relocate away from Regina. Instead their job duties will shift to support growth in other markets.
SGI says it’s had more success in western Canada and will be realigning its business strategy to reflect this.
“In Saskatchewan, we’ve built up quite a book for business with respect to oil field service and those sorts of things,” said Andrew Cartmell, president and CEO of SGI Canada.
“We do the exact same thing in Alberta and guess what, in eastern British Columbia, there’s an oil and gas market as well.”
SGI Canada has applied to operate in B.C. but first needs to be approved by the regulator.
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