Saskatchewan Government Insurance describes its performance during the 2020-2021 fiscal year as one of resilience despite the COVID-19 pandemic.
SGI released its annual reports on Tuesday showing a financially strong status for the province’s Auto Fund and SGI Canada.
One of the highlights for SGI this past fiscal year was providing a $285-million rebate program from the Auto Fund to registered vehicle owners – its largest ever rebate offering. The rebate was possible due to “exceptionally strong investment earnings and lower-than-anticipated collision claims.”
“The past year demonstrated that SGI can adapt quickly to serve its customers,” shared Minister Responsible for SGI Don Morgan in a statement on Tuesday. “Like most businesses, the COVID-19 pandemic tested SGI in new ways, and I’m proud of how the company worked to put the safety of customers and staff first, while still managing to be fiscally stable and responsible.”
Paid claims totaled $785.5 million while gross premiums written finished at $988.7 million. Customer discounts through the Safe Driver Recognition (SDR) and Business Recognition programs came to $156.9 million.
Through the Provincial Traffic Safety Fund Grant, $1.3 million was provided to 116 communities across Saskatchewan to fund traffic safety projects such as speed display signs and speed bumps.
2020 also saw the second-lowest number of auto collision fatalities in the province in the last six decades.
SGI Auto Fund and SGI Canada highlights from the 2020-2021 annual report. (Image courtesy of SGI)
‘Very strong’ year for SGI Canada
SGI Canada was able to provide a record $87 million dividend to the provincial government thanks to a solid performance in 2020-2021.
The organization reported a net income of $172.1 million, a record for SGI Canada, along with a pre-tax return on equity of 43 per cent.
Catastrophe claims in all of its markets (Saskatchewan, Alberta, Manitoba, Ontario and British Columbia) were recorded at $78.4 million – the highest amount in the last 10 years. Jeff Stepan, executive vice president and chief financial officer with SGI, said most of these claims were from Saskatchewan, with $25 million from the January wind storm.
Investment earnings reached $128.7 million while direct premiums written finished at $1.1 billion, including $445.6 million written outside of Saskatchewan.
“SGI Canada exceeded its targets in the past fiscal year, but along with a strong financial performance, the company also found new ways to care for its customers,” Morgan said. “The company implemented relief measures in the early days of the COVID-19 pandemic, offering customers deferrals and alternative payment options, as many faced uncertain financial situations.”
