SGI Weathered Challenges, Remains On Track
SGI’s financial position remains stable, according to the company’s annual reports that were released and tabled in the provincial Legislature.
The documents show that both sides of SGI weathered challenges, including a record-setting catastrophic storm and issues arising from the COVID-19 pandemic.
“Year-after-year, SGI delivers value to the people of Saskatchewan by offering affordable insurance, leading traffic safety initiatives and providing a dividend back to the province,” Minister Responsible for SGI Don Morgan said. “Even in times of uncertainty, SGI remains on track.”
The Saskatchewan Auto Fund is the self-sustaining, compulsory auto insurance plan administered by SGI on behalf of the province. In fiscal 2021-22, the Auto Fund remained financially strong, thanks to a diversified portfolio that reduced the impact of volatile investment markets. This allowed SGI to issue another round of rebates to customers and continue to offer the lowest average basic auto insurance rates in Canada.
Other Auto Fund highlights for 2021-2022 include:
- $89.3 million in rebates to customers, $100 for everyone who had a vehicle registered as of March 9, 2022;
- $108.7 million in investment earnings;
- $1.1 billion in the Rate Stabilization Reserve, which remains healthy even with a $39.8 million reduction;
- $926.3 million in total claims incurred;
- $1.0 billion in gross premium written;
- $160.9 million in discounts to customers through the Safe Driver Recognition (SDR) and Business Recognition programs;
- A significant storm which resulted in the single biggest month of claims in the company’s recorded history;
- Continued progress on traffic safety, as 2021 was the third straight year in which Saskatchewan saw among the lowest numbers of traffic fatalities in recorded history;
- $2.6 million in grants to 210 Saskatchewan community projects for road safety improvements through the Provincial Traffic Safety Fund Grant program, administered by SGI; and
- SGI was awarded MADD Canada’s Citizen of Distinction for its leadership in reducing impaired driving.
SGI CANADA is the competitive side of SGI, which offers property and casualty insurance in the provinces of Saskatchewan, Alberta, Manitoba, Ontario and British Columbia. SGI CANADA sells products through a network of nearly 350 brokers who operate in more than 1,600 locations.
In 2021-2022, SGI CANADA’s strong, stable underwriting returns enabled SGI CANADA toprovide a $57.5 million dividend back to the province.
Highlights for SGI CANADA in 2021-2022 include:
- $81.8 million net income, with a pre-tax return on equity of 16.4 per cent;
- $52.1 million underwriting profit;
- $32.3 million in investment earnings;
- $1.145 billion in direct premiums written, with 41 per cent written outside Saskatchewan;
- $54.3 million in catastrophe claims (all provinces);
- Overall growth rate of 7.1 per cent; and
- Two-thirds of brokers rate SGI CANADA better or significantly better than other insurers.
SGI’s financial stability and strategic growth year after year is a testament to the leadership of its recently retired President and CEO Andrew Cartmell, who successfully led the company for more than 12 years before his retirement in early April 2022. That stability and growth is expected to continue under newly appointed President and CEO Penny McCune, who has extensive knowledge of both the Auto Fund and SGI CANADA operations. McCune has held key strategic leadership roles in multiple divisions of the company during her 36-year career with SGI.
To see SGI’s full annual reports, visit www.sgi.sk.ca (Auto Fund) and www.sgicanada.ca (SGI CANADA).
For the latest information and for more updates on everything Kindersley,
Like the Kindersley Social Facebook page!