SGI Canada posts $48.4 million profit in 2010, despite ‘near-record’ storm claims

SGI Canada posted a consolidated net profit of $48.4 million in 2010, despite paying out a near-record total of storms claims.
“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,” the minister responsible for SGI, Tim McMillan, said in a press release.
SGI Canada reported paying “near-record storm claims totalling $61.5 million” in 2010.
SGI Canada is the competitive arm of Saskatchewan Government Insurance (SGI), selling property and casualty insurance in seven provinces. Out-of-province operations provided $5.1 million of the consolidated net profit.
SGI released its financial and operational highlights on Apr. 13, when the 2010 annual reports for SGI Canada and the Saskatchewan Auto Fund were tabled in the Legislative Assembly.
The other side of SGI’s operations, the Saskatchewan Auto Fund, is a 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.
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.
The complete SGI Canada annual report can be found at www.sgicanada.ca.