SGIO to be sold by a public share float

The SGIO will be sold by a public share float, Premier Carmen Lawrence said today.

Dr Lawrence said Cabinet had decided on the float to ensure that the SGIO would continue to be Western Australian-based.

"The SGIO has been a strong insurance business since its establishment in 1926 and will be a large public company on the national scale," Dr Lawrence said. 

"It is uniquely identified with the State as the largest Western Australian-based insurer with major market shares in commercial and personal insurance.

"Maintaining the SGIO's base in Western Australia will benefit local suppliers and providers of professional services.

"It will continue to grow and to provide employment and career advancement opportunities to Western Australians.

"The Government will work to ensure that employees affected by the change will not be disadvantaged."

Cabinet also endorsed the appointment of Mr Ron Cohen as chairman designate and Mr David Young as deputy chairman designate of the new SGIO.

The Premier said the Government would go ahead immediately with implementing the sale, which would honour an undertaking given in 'The WA Advantage'.

Legislation would be introduced early in the Spring Session of State Parliament to enable the sale to go ahead.

A committee chaired by Mr Cohen and including representatives of the SGIC, SGIO and Treasury would implement the sale.

Mr Cohen said he was delighted with the Government's decision to float the SGIO.

The new SGIO would adopt a new logo to signify its independent status.

The SGIO's parent body, the State Government Insurance Commission, would be reconstituted as the Insurance Commission of WA.

The ICWA would be wholly government-owned and continue to provide services such as government self-insurance, government workers' compensation insurance, industrial disease insurance and compulsory third party motor vehicle insurance.