2014 solid and steady for SGI
April 15, 2015
SGI experienced a good year overall in 2014 for both sides of its operations. SGI CANADA had a successful year, while the Saskatchewan Auto Fund’s results remained steady.
SGI released its financial and operational highlights when the 2014 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 Saskatchewan, Alberta, Manitoba and Ontario. The corporation achieved strong premium growth last year, largely from Saskatchewan and Alberta markets. This, combined with strong investment earnings, resulted in a consolidated profit of $40.7 million.
“SGI CANADA produced a strong profit despite substantial summer storm costs in 2014," Minister Responsible for SGI Don McMorris said. "This allowed the corporation to contribute a significant dividend for government to invest in the programs and services Saskatchewan people rely on. The strong results show that SGI CANADA’s three-pronged strategy in 2014 paid off - continuing to spread risk geographically to offset large losses and protect customers in all regions; focusing on maintaining market share in Saskatchewan; and, managing finances wisely to ensure strong investment returns.”
SGI CANADA highlights for 2014 include:
- $56.2 million in storm claims ($49.5 million attributed to claims from Saskatchewan), the highest net storm costs in SGI CANADA’s history
- $48.1 million in investment earnings, resulting from sound financial management and a disciplined investment approach
- $31.6 million dividend paid to Crown Investments Corporation
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 Auto Fund has experienced financial challenges in recent years. Costs for those injured in auto crashes have grown faster than anticipated, and, coupled with volatile investment earnings, have resulted in the Rate Stabilization Reserve (RSR) being depleted. The RSR acts as a cushion against unforeseen events (such as higher than anticipated claim costs).
In 2014, a solid investment strategy helped the Auto Fund achieve strong earnings on its portfolio, and more registered vehicles resulted in a growth in premiums. Overall, the Auto Fund’s 2014 performance allowed it to partially replenish the RSR, bringing it closer to its target balance.
“In 2014 the Saskatchewan Auto Fund continued to provide the province’s motorists with reasonable prices, solid coverage and quality service while also meeting the needs created by more drivers and vehicles on our roads and highways,” McMorris said.
Auto Fund highlights for 2014 include:
- $53.8 million increase to the RSR, bringing the balance to $218.1 million
- $834.2 million in claims ($20.5 million of those claims resulting from summer storms)
- $120.7 million returned to customers through discounts provided under the Safe Driver Recognition and Business Recognition programs
- Implemented significant traffic safety law changes and undertook other efforts to help reduce injuries and fatalities on Saskatchewan roads and highways; initiatives were based on recommendations from both the all-party Special Committee on Traffic Safety, as well as the Motorcycle Review Committee
“I’m especially proud of SGI’s support for legislative and regulatory changes to strengthen traffic laws addressing impaired driving, distracted driving, excessive speed, passenger safety and rider safety. These changes will help make roads safer for everyone in our province,” McMorris said.
To further heighten awareness of the changing laws, SGI launched the Road Safety Challenge campaign to encourage safe driving habits among all Saskatchewan residents.
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 nearly 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.