SGI weathers storms of 2010
April 12, 2011
Despite a near-record number of storm claims in 2010, both SGI CANADA and the Saskatchewan Auto Fund remain financially solid.
SGI released its financial and operational highlights when the 2010 annual reports for SGI CANADA and the Saskatchewan Auto Fund were tabled in the Legislative Assembly today.
SGI CANADA is the competitive arm of SGI, selling property and casualty insurance in seven provinces.
“Despite the incredible amount of storm activity in 2010, a solid reinsurance program, lucrative investment returns and growth in out-of-province operations enabled SGI CANADA to continue to be profitable this year,“ said Minister Responsible for SGI Tim McMillan.
SGI CANADA highlights for 2010 include:
- Near-record storm claims totaling $61.5 million.
- Consolidated net profit of $48.4 million.
- Out-of-province operations provided $5.1 million of the consolidated net profit.
- Paid a dividend of $43.5 million to Crown Investments Corporation.
“In addition to sound financial management, SGI CANADA also demonstrated its commitment to customer service in 2010,“ said McMillan. “SGI CANADA was there for customers whose homes and businesses were left in turmoil after the sudden downpour of summer storms. Adjusters from around the province arrived in storm-stricken areas within mere hours to address the most serious claims.“
The other side of SGI's operations, the Saskatchewan Auto Fund, is the self-sustaining, compulsory auto insurance plan administered by SGI on behalf of the province. It is a public fund for motorists, cannot pay dividends and is not intended to earn profits.
“The Saskatchewan Auto Fund provides high-quality and accessible services to the people of the province, and offers the lowest average personal auto insurance rates in Canada. It's a competitive advantage for the province,“ said McMillan.
The Auto Fund retained its focus on customer service and traffic safety in 2010. Financially, the Auto Fund also benefitted from stronger than expected investment returns.
Auto Fund highlights during 2010 include:
- The Rate Stabilization Reserve increased to $142.3 million by end of 2010.
- The five-year Auto Fund computer system redevelopment project was completed, on time and within three per cent of its $35 million budget.
- The Auto Fund introduced online transactions with the MySGI service.
- Customers earned $97.6 million in discounts under the Safe Driver Recognition and Business Recognition programs, an increase from just under $90 million in 2009.
Saskatchewan Government Insurance (SGI) is the province's self-sustaining auto insurance fund. SGI operates 21 claims centres and five salvage centres across Saskatchewan with a head office in Regina. SGI also works with a network of over 400 motor licence issuers across the province. Customers can now do some transactions online. Look for the MySGI link under Online Services on your motor licence issuer's website or SGI's website.