SGI posts $84.5-million profit in annual report

Widow says she can't get compensation from Saskatchewan Government Insurance after car crash.
SGI Canada released its financial results for 2015-16, posting a profit of $84.5 million. File / Global News

SGI Canada released its financial results for 2015-16, posting a profit of $84.5 million.

The Crown corporation says the period of January 1, 2015 to March 31, 2016 showed the profit came despite significant storm losses across the prairies and forest fire claims in Northern Saskatchewan.

SGI CANADA highlights for 2015-16 include:

  • $46 million in investment earnings, resulting from a well-managed and diversified investment portfolio;
  • $42.4 million underwriting profit;
  • $797 million in premium written; $235 million of that premium written outside Saskatchewan;
  • $55.1 million in claim losses due to summer storms and wildfires in Northern Saskatchewan;
  • $47.3 million dividend paid to Crown Investments Corporation to benefit the people of Saskatchewan.

“SGI CANADA’s profitability is due to both favourable underwriting results and investment earnings,” Don McMorris, the minister responsible for SGI, said.  “In addition, SGI CANADA achieved growth in all provinces where it operates, despite economic downturns in Alberta and Saskatchewan.  This growth is a direct result of the positive partnerships SGI CANADA has built with its broker partners across the country.”

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SGI says the other side of its operations, the Saskatchewan Auto Fund, also showed strong results.

The Auto Fund saw its reserve increase by $159.1 million to a balance of $377.2 million. The fund is in place to ensure there is enough money to pay future claim obligations.

SGI says an unusually mild winter and recent traffic safety initiatives has contributed to relatively low damage and injury claims.

Auto Fund highlights for 2015-16 include:

  • $111.8 million in investment earnings due to strong foreign equity returns and positive fixed-income results;
  • $934.3 million in claims ($25.7 million of those claims resulting from summer hail storms);
  • $155.7 million in discounts provided to customers with safe driving records through the Safe Driver Recognition and Business Recognition programs.