Severe summer storms took bite of SGI’s 2007 profits

SGI CANADA has posted a profit of Cdn$35.1 million in 2007.
The drop from 2006’s profit of Cdn$52 million is due to a number of severe summer storms that swept across Saskatchewan causing an increase in claim costs, the company reports in a release.
“We are very pleased that, in spite of the increase in storm activity, SGI CANADA earned a healthy profit in 2007,” Jon Schubert, president, SGI, said in the release.
SGI CANADA paid a dividend of Cdn$22.8 million to Crown Investments Corporation in 2007 as compared to Cdn$33.9 million in 2006.
The Saskatchewan Auto Fund posted a Cdn$32 million surplus in 2007 before customer rebates, with a year-end balance in the Rate Stabilization Reserve (RSR) of Cdn$141 million.
In 2006, the Auto Fund posted a $101 million surplus, which resulted in a Cdn$206 million balance in the RSR.
In 2007, the Auto Fund returned approximately Cdn$100 million to more than half a million vehicle owners in Saskatchewan through an almost 17% rebate on 2006 insurance premiums, SGI reports.
The Auto Fund also introduced a 7.1% rate reduction with rate rebalancing, meaning about 448,000 Saskatchewan vehicle owners saw a reduction in their premiums, the company adds.
“Saskatchewan residents continue to enjoy the lowest automobile insurance rates in the country and that trend will continue in 2008,” Ken Cheveldayoff, minister of crown corporations, said in the release.