COMMERCE GROUP RENEWS CONTRACT WITH CGI
The Commerce Group, Inc. (NYSE: CGI), the largest writer of private passenger automobile insurance in Massachusetts and CGI Group Inc. (CGI) (TSX: GIB.A; NYSE: GIB;), a leading provider of information technology and business processing services, announced today the signing of a six-year business process outsourcing (BPO) contract renewal valued at US$35 million. CGI will provide full policy processing services for Massachusetts private passenger and commercial automobile lines as well as providing CGI's CollaborativeEdge agency interface tool, application support and maintenance, regulatory support, systems consulting, and document management services.
Gerald Fels, Commerce Group's executive vice-president and CFO, stated: "As the leading provider of private passenger automobile in Massachusetts, our goal is to provide our agents and employees with services that help them perform to their highest level. Over the years we have fostered a strong relationship with CGI. Their system is robust and accurate and their team is very familiar with our internal processing systems. That is important for us."
Serge LaPalme, president, insurance business services for CGI added: "We are very pleased to be continuing our relationship with the Commerce Group, one that spans over 30 years. The Commerce Group continues to be one of our valued business partners and is strategic to our success. In helping our client further focus on their core business, we are taking advantage of new technologies when and where it makes sense. Our team knows the insurance industry and the State's very unique regulatory environment intimately and as a result are quick to adapt existing solutions to this constantly evolving sector."
About The Commerce Group, Inc.
The Commerce Group, Inc., an insurance holding company, is headquartered in Webster, Massachusetts. Commerce Group's property and casualty insurance subsidiaries include The Commerce Insurance Company and Citation Insurance Company in Massachusetts, Commerce West Insurance Company in California and American Commerce Insurance Company in Ohio. Through its subsidiaries' combined insurance activities, Commerce Group is ranked as the 22nd largest personal automobile insurance group in the country by A.M. Best, based on 2002 direct written premium information.
Founded in 1976, CGI is the fifth largest independent information technology services firm in North America, based on its headcount. CGI and its affiliated companies employ 20,000 professionals. CGI's annualised revenue run-rate is currently CDN$2.8 billion (US$1.9 billion) and at September 30, 2003, CGI's order backlog was CDN$12.3 billion (US$9.1 billion). CGI provides end-to-end IT and business process services clients worldwide from offices in Canada, United States and Europe. CGI's shares are listed on the TSX (GIB.A) and the NYSE (GIB) and are included in the TSX 100 Composite Index as well as the S&P/TSX Canadian Information Technology and Canadian MidCap Indices. Website: www.cgi.com.
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. These statements represent CGI Group Inc.'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.
These factors include and are not restricted to the timing and size of contracts, acquisitions and other corporate developments; the ability to attract and retain qualified employees; market competition in the rapidly-evolving information technology industry; general economic and business conditions, foreign exchange and other risks identified in the Management's Discussion and Analysis (MD&A) in CGI Group Inc.'s Annual Report or Form 40-F filed with the SEC, the Company's Annual Information Form filed with the Canadian securities authorities, 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, which speak only as of the date on which they are made. In particular, statements relating to future revenue from outsourcing contracts are forward-looking statements. CGI disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements.
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