SGI discloses profit turnaround for 2003

Saskatchewan Government Insurance (SGI) Canada, a provincial crown insurer, generated a net profit of $21.2 million for the 2003 financial year. The financial turnaround reflects a $30 million improvement over the course of the 12 month period, a statement released by the insurer notes. Notably, Ontario-based subsidiary Coachman Insurance Co., reported a net profit of $320,000 for last year, which follows a loss of $11.3 million made the year prior.
The financial improvement of SGI over 2003 allowed the insurer to boost its auto rate stabilization fund by $11.5 million, bringing the current position to $14.4 million. Maynard Sonntag, the provincial government minister responsible for overseeing SGI, observes that drivers in the province did not face any rate increases last year, nor are they likely to this year. "In 2001, and 2002, the insurance industry across Canada suffered two of its worst financial years on record. Poor underwriting results, increased reinsurance costs and less than average investment income hit the industry hard. SGI Canada met these challenges head-on, and reported the close to record profit [for 2003] due to its strategic business planning."