SGI CANADA sells shares in Cooke Insurance
June 28, 2010
SGI CANADA has sold its shares in the Charlie Cooke Insurance Agency (CCIA), effective June 1, 2010.
The shares were purchased by SGI CANADA in 2002 through its subsidiary, SGI CANADA Insurance Services Ltd. (SCISL). In 2002 SGI CANADA paid $691,341 for the shares, and they have now been sold for $1,146,162.
SGI CANADA received $628,750 in dividends over the past eight years. The income realized during its ownership, plus the net proceeds on the sale, resulted in a cumulative profit on the investment of $1,083,571 for an annualized compound return of 15.1 per cent for SGI CANADA.
SGI CANADA engaged the services of an independent third party to prepare a market valuation of the CCIA shares. The shares were sold at a fair market value.
“As an insurance company, it is prudent for SGI CANADA to spread its risk geographically so that losses in one jurisdiction can be offset by profits from another. The Saskatchewan First investment policy endorses SGI CANADA’s strategy of seeking profitable growth in its existing markets to support operations here in Saskatchewan," said SGI CANADA President and CEO Andrew Cartmell. "SGI CANADA's shares in CCIA were not part of the geographic diversification strategy, which is why they have been sold."
With the sale of the CCIA shares complete, SGI CANADA is now seeking to divest itself of shares in two smaller operations associated with CCIA &-; the Maritime Finance & Acceptance Corporation and Atlantic Adjusting & Appraisals Ltd.
About SGI CANADA
SGI CANADA has been in business for more than 60 years, selling property and casualty insurance in seven Canadian provinces. It operates as SGI CANADA in Saskatchewan; SGI CANADA Insurance Services Limited in Alberta and Manitoba; Coachman Insurance Company in Ontario; and the Insurance Company of Prince Edward Island (ICPEI) in New Brunswick, Nova Scotia and Prince Edward Island. Saskatchewan Government Insurance (SGI) is the province's self-sustaining auto insurance fund.
Manager of Media Relations