SGI CANADA posts $40.4 million profit in 2008
April 6, 2009
SGI released its financial and operational highlights when the 2008 annual reports for SGI CANADA and the Saskatchewan Auto Fund were tabled in the Legislative Assembly today.
SGI CANADA recorded its third most profitable year ever, producing a profit of $40.4 million in 2008. Premium growth in 2008 for out-of-province operations was 25 per cent, while strong growth in the Saskatchewan economy provided premium growth in Saskatchewan of seven per cent. SGI CANADA is the competitive arm of the corporation, selling property and casualty insurance in seven provinces.
"SGI CANADA's focus is growing business in its existing markets while supporting the growth of Saskatchewan's economy," Minister of Crown Corporations Ken Cheveldayoff said. "It is important for an insurance company to spread its risk geographically. SGI CANADA has also earned strong customer service ratings from its independent brokers."
SGI CANADA paid a dividend of $26.2 million to Crown Investments Corporation in 2008.
The Saskatchewan Auto Fund experienced some financial challenges in 2008, posting a loss of $42.7 million, largely due to higher claim costs and lower investment earnings. At year end, the balance in the Rate Stabilization Reserve was $102.5 million. The Saskatchewan Auto Fund is a self-sustaining, compulsory auto insurance plan administered by SGI on behalf of the province.
"Despite some financial challenges in 2008, Saskatchewan residents continue to enjoy the lowest automobile insurance rates in the country," Cheveldayoff said. "The Auto Fund is committed to providing the best customer-driven and affordable automobile insurance plan in Canada. SGI remains a leader in Saskatchewan in traffic safety awareness and education."
In 2008, Saskatchewan motorists received $81.6 million in safe driver discounts through the Safe Driver Recognition and Business Recognition programs. The Auto Fund also returned nearly $600,000 to Saskatchewan vehicle owners through the Green Rebate program in 2008.