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SGI Canada reports underwriting income of $42 million for 15 months ending March 31


July 19, 2016   by Canadian Underwriter


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Saskatchewan Government Insurance announced Monday that the province’s Auto Fund had an underwriting loss of $11.1 million for the 15 months ending March 31, 2016, while SGI Canada, the competitive arm of SGI, had underwriting income of $42 million during the same period.

graphs and chartsSGI Canada offers P&C insurance in Saskatchewan, Manitoba, British Columbia and Alberta through SGI Canada Insurance Services Ltd. and in Ontario through Coachman. It also administers Auto Fund, Saskatchewan’s compulsory auto insurance plan.

SGI Canada “incurs administrative and claim adjustment expenses on behalf of the Auto Fund, which are charged to the Auto Fund directly or on the basis of specific distributions,” SGI stated. “Amounts incurred by SGI Canada and charged to the Auto Fund were $174.3 million” during the 15 months ending March 31.

In 2014, SGI Canada’s fiscal year end was December 31, but that has since changed to March 31 to correspond to the province’s fiscal year end.

For both the Auto Fund and SGI Canada, SGI reported Monday the results for the 15 months ending March 31, 2016 and compared those to the 12 months ending Dec. 31, 2014.

The Auto Fund had net premiums earned of $1.138 billion during the 15 months ending March 31, 2016, compared to $864 million in calendar year 2014.

Net claims incurred were $934 million during the 15 months ending March 31, 2016, compared to $834 million during the 12 months ending Dec. 31, 2014.

The underwriting loss was $11.1 million during the 15 months ending March 31, compared to an underwriting loss of $139.1 million for the year ending Dec. 31, 2014.

SGI Canada reported net premiums written of $730 million during the 15 months ending March 31, 2016, compared to $549.86 million during the 12 months ending Dec. 31, 2014.

Net claims incurred were $415 million during the 15 months ending March 31, compared to $322 million in calendar year 2014. Underwriting income was $42 million during the 15 months ending March 31, while the underwriting loss during the 12 months ending Dec. 31, 2014 was $5.54 million.

SGI Canada had gross written premiums of $796.7 million during the 15 months ending March 31.  Of that, $562 million was from Saskatchewan, $128.86 million was from Alberta, $79 million was from Ontario, $25.6 million was from Manitoba and $1.2 million was from British Columbia. SGI announced in October, 2014 it received a licence allowing it to write P&C insurance in B.C.

SGI used to own 75% of Insurance Company of Prince Edward Island, but sold its take in ICPEI, in 2014, to EGI Financial Holdings Inc., now known as Echelon Financial Holdings Inc.

Of SGI’s gross written premiums during the 15 months ending March 31, $323.5 million was from auto, $317 million was from personal property, $92.7 million was from commercial property and $63.4 million was from liability.

Net income for SGI Canada was $84.5 million during the 15 months ending March 31, compared to $40.6 million during the 12 months ending Dec. 31, 2014.

SGI Canada’s investment income was $46 million during the 15 months ending March 31, 2016, down from $48.1 million during the 12 months ending Dec. 31, 2014. The Auto Fund reported net investment earnings of $111.75 million during the 15 months ending March 31, 2016, down from $151 million during calendar-year 2014.