Magnolia Insurance Taps CGI for $115M Contract

May 9, 2008

CGI 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.”