Saskatchewan Government Insurance doesn't take offence at being called "the socialist agency" by Alberta Premier Ralph Klein, a spokesperson for the Crown-owned company says.

Klein made the comment Wednesday after being asked about auto insurance rates and the question of whether Alberta drivers were being gouged by insurance companies.

SGI's corporate headquarters are in Regina.

Alberta NDP Leader Brian Mason referred to SGI's recent announcement that it will give Saskatchewan drivers an eight per cent rate rebate.

"Why can't the private industry do it, and why doesn't this government direct them to do it?" Mason asked Klein during question period.

"The insurance agency in Saskatchewan, the socialist agency, can compete here if they want to," Klein replied.

Penny McCune, assistant vice-president of SGI's Canadian operations, said she wasn't taking offence.

"Not at all," she said. "We're just happy that they changed the legislation to let us in."

Last year, the Alberta government passed legislation allowing Crown-owned insurance companies to sell their services in the province.

McCune said SGI Canada will be operating in Alberta by May and will offer automobile and other forms of insurance.

SGI Canada's Alberta auto rates, "will definitely be competitive," but they won't be as low as they are in Saskatchewan, she said.

That's because the Saskatchewan AutoFund, the branch of SGI that handles car insurance in the province, is run on a break-even basis, she said.