One insurer has announced that it is shifting its focus westward, and will be leaving the Atlantic Canada market.
Saskatchewan Government Insurance (SGI) Canada has announced it is pulling out of the Maritimes and has its sights set on the west coast, following two decades of expansion to other provinces.
“Like any insurer in today’s evolving business climate, SGI CANADA continuously evaluates its market position,” said Andrew Cartmell, president and CEO of SGI Canada. “The opportunity to divest ourselves of ICPEI arrived at the right time. British Columbia is a region with strong growth potential that also fits with SGI CANADA’s plans to build expertise in providing insurance to Western Canadian industries such as mining and oil and gas; so moving further west is a natural fit.”
The company decided Friday to sell its 75 per cent stake in the Insurance Company of Prince Edward Island (ICPEI).
“In Saskatchewan, we’ve built up quite a book for business with respect to oil field service and those sorts of things,” Cartmell told Global News. “We do the exact same thing in Alberta and guess what, in eastern British Columbia, there’s an oil and gas market as well.”
ICPEI is the largest Maritime province-based insurer in Canada that provides automobile, home and commercial insurance. (continued.)
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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.
“Our plans to exit the Maritimes and move into B.C. will allow us to achieve geographic diversification targets faster, spreading risk more effectively and helping ensure financial stability for the company and, ultimately, providing enhanced security for customers in all regions,” said Cartmell.
SGI Canada has applied to operate in B.C. but first needs to be approved by the regulator.
