CGI ANNOUNCES CONTRACT RENEWAL WITH CITIGROUP SUBSIDIARY IN THE U.S. MARKET
CGI announced today that The Premier Insurance Company of Massachusetts, a member of Citigroup, has signed a three year extension with CGI for applications support, maintenance, and full policy processing services for their Massachusetts Automobile operations. The contract is valued at approximately US$8.4 million. Premier Insurance, headquartered in Worcester, Massachusetts, is one of the largest writers of Private Passenger automobile insurance in the state of Massachusetts.
"Premier is very pleased to be extending its relationship with CGI," says John Kostal, Chief Information Officer for The Premier. "We look forward to continuing our partnership with CGI, as they continue to roll out new products and service like CollaborativeEdge which improve the insurance process, benefiting the consumer, agent, and company alike."
Robert Steel, Senior Vice-President & General Manager for CGI's U.S. operations, stated that: "The Premier Insurance Company has always been one of our most valued business partners and is strategic to our success. We are extremely pleased that Premier has once again entrusted CGI to be their IT provider for policy processing and agency automation services. Our ability to leverage technology with our experience in the financial services arena should prove useful in assisting Premier as we head toward the new millennium."
The Premier Insurance Company of Massachusetts and Travelers Property Casualty are part of Citigroup, a global leader in financial services. Citigroup serves over 100 million customers in 100 countries in the areas of traditional banking, consumer finance, credit cards, investment banking, securities brokerage and asset management, and property casualty and life insurance. Its customer base includes consumers, corporations, institutions and governments globally. The company has assets close to $700 billion, net revenues of nearly $50 billion, operating income of approximately $7.5 billion and equity of more than $44 billion. Its market capitalization ranks it number one among the world's financial services companies.
CGI is the sixth largest independent information technology consulting firm in North America and the largest in Canada. It provides end-to-end IT services and business solutions to some 2,000 clients in the United States, Canada and 20 countries around the world. CGI has 9,000 professionals, an annualized revenue-run rate of CDN$1.3 billion and an order backlog totaling approximately CDN$6.7 billion. The company currently has proposals outstanding for an additional CDN$4 billion in potential large contracts. CGI's shares are listed on the New York Stock Exchange (GIB), as well as on the Toronto and Montreal exchanges (GIB.A). They are included in the Toronto Stock Exchange's TSE 300 Composite and TSE 200 indexes. Web site: www.cgi.ca.
All statements contained in this or any other press release of CGI Group Inc., or in any document filed by the Company with the U.S. Securities and Exchange Commission, or in any other written or oral communication by or on behalf of the Company, that do not directly and exclusively relate to historical facts, constitute "forward looking statements" within the meaning of the U.S. Private Securities Litigation Report Act of 1995. These statements represent the Company's expectations and beliefs, and no assurance can be given that the results described in such statements will be achieved.
This press release may contain forward looking statements that involve a number of risks and uncertainties, including statements regarding the outlook for the company's business and results of operations. There are a number of factors that could cause actual results to differ materially from those indicated. Such factors include, without limitation, the various factors set forth in the Company's annual report or Form 40F filed with the SEC and its Annual Information Form filed with Canadian securities commissions, which important factors are included here by reference.
- 30 -
For more information:
Investor and Media Relations