Despite several challenges posed by the COVID-19 pandemic, the Saskatchewan auto fund and Saskatchewan Government Insurance (SGI) Canada remain “resilient” and “financially strong.”
SGI tabled its annual reports in the provincial Legislature on Tuesday.
“Exceptionally” strong investment earnings along with low collisions claims kept the auto fund healthy for 2020-21, leading to SGI’s largest-ever rebate program of $285 million to registered vehicles owners.
Because of the strength of the auto fund, SGI implemented enhanced injury benefits to its “most seriously injured customers.”
SGI credits the lower number of collision claims in 2020-21 to its focus on promoting traffic safety with campaigns such as Could You Live With Yourself? and Everything Else Can Wait.
“The past year demonstrated that SGI can adapt quickly to serve its customers,” said Don Morgan, Saskatchewan’s minister responsible for SGI.
“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.”
The report shows that $785 million in claims were paid from the auto fund in 2020-21 with $988.7 million in gross premiums written along with $18.9 million in net storm claims.
Through its safe driver recognition (SDR) and business recognition programs, SGI’s auto fund paid out $156.9 million in discounts to customers while $1.3 million was provided to 116 Saskatchewan communities to upgrade traffic safety projects through the provincial traffic safety fund grant.
Highlighted in its report, Saskatchewan became the first jurisdiction in the country to begin offering mandatory entry-level training (MELT) online for commercial drivers and the first province to resume driver’s license road tests.
In 2020, the province recorded the second-lowest number of auto collision deaths over the past six decades.
SGI Canada, which sells property and casualty insurance in Saskatchewan, Alberta, Manitoba, Ontario and British Columbia, reported its financial performance for 2020-21 as “very strong,” providing a record $87 million dividend to the Government 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.”
With more than 980,000 customers across Canada, SGI Canada reported a net income of $172.1 million in 2020-21 with a pre-tax return on equity of 43.1 per cent along with $128.7 million in investment earnings.
There was $1.1 billion in direct premiums written which included $445.6 million, or 42 per cent, written outside of Saskatchewan.
SGI Canada reported $74.8 million in catastrophe claims, a total of all provinces.
For more information on Saskatchewan’s auto fund’s annual report visit the SGI website. The SGI Canada’s annual report can be found on its website.