April 24, 2006 by Canadian Underwriter
SGI Canada had its second-best year on record in 2005, posting a consolidated profit of more than CD$35 million, despite record storm costs of more than CD$28 million in Saskatchewan, according to SGI’s 2005 annual reports recently tabled with the provincial legislature.
SGI Canada is the competitive arm of the corporation, selling property and casualty insurance in Saskatchewan, Manitoba, Ontario and the Maritimes. SGI Canada paid a dividend of CD$22.9 million to Crown Investments Corporation.
“SGI Canada continued to expand its presence beyond Saskatchewan’s borders selling its products in Manitoba, Ontario and the Maritimes,” the minister responsible for SGI, Glenn Hagel, said in a press release.
“Forty-five per cent of the company’s underwriting profit came from the business written in other provinces, despite the fact that 84% of our premiums are written in Saskatchewan,” Hagel said. “Each of SGI Canada’s out-of-province operations were profitable in 2005; they continue to spread SGI’s insurance risk, earn profits and create jobs in Saskatchewan.”
Looking toward the future, SGI Canada is planning to start selling insurance products in Alberta in 2006. SGI said it plans to write CD$50 million in premium income over the next five years from that market alone.
The Saskatchewan Auto Fund posted a $61 million surplus in 2005, resulting in a CD$163 million balance in the Rate Stabilization Reserve (RSR). The Saskatchewan Auto Fund is the compulsory auto insurance program administered by SGI on behalf of the government.
“In 2006, SGI will give back CD$45 million to 520,000 customers through an 8% rebate on the insurance premiums they paid for 2005 coverage,” SGI announced. “SGI customers will continue to enjoy the lowest auto insurance rates in Canada, with 2006 marking the sixth year in a row with no general increase to rates.”