CGI (TSX: GIB.A) (NYSE: GIB) announced the signing of a 21-month contract with Desjardins Group (Desjardins). This contract is being awarded as part of the acquisition project, announced last January, involving the Canadian property and casualty and life insurance operations of State Farm, the largest mutual property insurance company in the United States.
To support Desjardins in the implementation of this large-scale project, which is subject to regulatory approvals, CGI will carry out work to adapt systems and convert data in areas related to vehicle and home insurance. In addition, its experience in business integration will be substantially put to use within the context of this project.
“CGI is a long-standing partner of Desjardins Group and is an organization in which we have full confidence,” underlines Monique Leroux, Chair of the Board, President and Chief Executive Officer, Desjardins Group. “CGI knows our business, systems and technical environment, as well as our processes and practices. We are relying on its high delivery capacity to implement this project successfully and seamlessly for State Farm agents, employees and clients” adds Sylvie Paquette, President and Chief Operating Officer of Desjardins General Insurance Group, the property and casualty insurance subsidiary of Desjardins.
“CGI is proud to contribute to this strategic project, which leverages our deep domain expertise and experience in business and system integration”, adds Claude Marcoux, CGI’s Chief Operating Officer in Canada. “Desjardins has entrusted us with a mandate to support the successful transition of the two organizations’ systems and data. This new agreement with Desjardins demonstrates the commitment of CGI to support its clients in solidifying their strategic direction and achieving their business objectives.”
CGI is a provider of consulting and IT services to 7 of the top 10 insurers in the world. CGI has also partnered with more than 160 property, casualty, life and group insurance companies, as well as with other insurance organizations and brokers worldwide.
Acquisition of State Farm Canadian operations by Desjardins Group
As a result of this transaction, which is expected to close in January 2015, Desjardins will become the second largest property and casualty insurance company in Canada, with its volume of annual gross premiums underwritten increasing from approximately $2 billion to $3.9 billion. Upon completion of the transaction, Desjardins will welcome State Farm’s 1,800 Canadian employees into its ranks, along with the Canadian network of more than 500 agents serving over 1.2 million existing clients in Ontario, Alberta and New Brunswick. Desjardins expects this transaction to give rise to a significant number of new jobs in Canada over the next few years.