April 13, 2005 by Canadian Underwriter
Saskatchewan’s public auto insurer has nearly doubled its profit in 2004, bringing in net income of $42 million, to record its most successful year ever.
Saskatchewan Government Insurance (SGI) used a good portion of that money, $27 million, to pay a dividend to the province.
Gross written premiums for 2004 rose to $300.8 million (2003: $272.4 million), while net earned premiums jumped to $267.5 million (2003: $241.0 million).
Claims costs also rose, hitting $157.6 million (2003: $150.2 million), although the province had a relatively storm-free summer. Total claims and expenses were $251.6 million in 2004 (2003: $238.5 million), helping SGI produce an underwriting profit of $15.9 million, compared to just $2.6 million in 2003.
And investment earnings were strong in 2004 at $27.35 million, versus just $19.6 million the year prior.
The success of SGI’s subsidiaries in other provinces SCISL in Manitoba, ICPEI in PEI and Coachman in Ontario were noted by Maynard Sonntag, Minister Responsible for SGI, when he presented the annual report to the province’s Legislative Assembly. “SGI CANADA continued to expand its presence beyond Saskatchewan’s borders and each subsidiary posted a profit in 2004. Out of province operations continue to spread SGI’s insurance risk, earn profits, and create jobs in Saskatchewan.”
He also commented on the $125 million surplus recorded by the Saskatchewan Auto Fund in 2004, which contributed to a $140 million balance in the province’s rate stabilization reserve.