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.
For further information: Investors: Lorne Gorber, Vice-President, Global
Communications and Investor Relations, (514) 841-3355; Media: Linda Odorisio,
Vice President, U.S. Communications, (703) 227-6161
