April 27, 2007 by Canadian Underwriter
The Saskatchewan Auto Fund in 2006 enjoyed its second-strongest year on record, posting a Cdn$101-million surplus and contributing to a record-level Cdn$206-million balance in the Rate Stabilization Reserve (RSR).
The Saskatchewan Auto Fund is a self-sustaining, compulsory auto program administered by SGI on behalf of the government.
The 2006 financial results caused SGI to return an additional Cdn$100 million to over 544,000 customers through a rebate on the insurance premiums paid for 2006 coverage.
“In addition to customer rebates, the strong financial position of the Auto Fund prompted SGI to apply to reduce and rebalance rates in 2007,” Minister responsible for SGI Glenn Hagel said while tabling SGIs 2006 annual results. Saskatchewan residents already enjoy the lowest automobile insurance rates in the country, and if the rate application is approved more than half of SGI customers will be paying even less.”
Also, SGI CANADA reported its most financially successful year ever in 2006, posting a profit of Cdn$52 million.
The success is due to the continued success of expansion efforts outside of Saskatchewan, which posted a record profit of Cdn$13 million, as well as reduced storm activity across the country, SGI reported in a press release.
SGI CANADA is the competitive arm of the corporation, selling property and casualty insurance in seven provinces. SGI CANADA entered the Alberta market and expanded its presence in the Maritimes in 2006.
Each of the out-of-province operations were profitable in 2006, making up 25% of SGI CANADAs consolidated profit, despite the fact that only 17% of premiums are written outside Saskatchewan, said SGI President Jon Schubert.