October 2, 2003

A.M. BEST Confirms SGI CANADA's Excellent Rating

Today, A.M. Best confirmed the financial strength of SGI CANADA, which retained its A- (excellent) rating. A.M. Best is the major international insurance company rating agency.

"The release today of SGI CANADA's rating is independent confirmation that we're on the right track," said Minister responsible for SGI Deb Higgins. "But we, like other insurance companies, are operating in difficult markets, particularly for auto insurance. Despite this, we've still got some of the best ratings in the insurance industry."

Ratings for SGI CANADA and its subsidiaries, SGI CANADA Insurance Services Ltd. (SCISL) and the Insurance Corporation of Prince Edward Island (ICPEI) remained unchanged from last year. SCISL and ICPEI retained their B+ (very good) rating. SGI CANADA's other subsidiary, Coachman Insurance Company in Ontario, was downgraded from B+ (very good) to B (fair).

"A.M. Best acknowledged the steps taken to improve Coachman's financial results, including improving underwriting, implementing rate increases, cutting expenses and eliminating unprofitable business. Because of these actions, we're confident that Coachman will post a small profit by year end.

"We're also very pleased that A.M. Best views favourably SGI CANADA's efforts to diversify its book of business and reduce the company's concentration of risk in Saskatchewan through expansion into Canadian provinces," Higgins said.

For more information, contact:

Julianne Jack
SGI Communications
775-6907