SGI Reports Strong Financial Results in a Challenging Year
While the COVID-19 pandemic posed significant challenges, the Saskatchewan Auto Fund and SGI CANADA remain resilient and financially strong, according to SGI's annual reports which were tabled today in the provincial Legislature.
The Saskatchewan Auto Fund is the self-sustaining, compulsory auto insurance plan administered by SGI on behalf of the province. Exceptionally strong investment earnings and lower-than-anticipated collision claims enabled the Auto Fund to provide SGI's largest ever rebate program to registered vehicle owners, and implement enhanced injury benefits for its most seriously injured customers. In addition, SGI focused on promoting traffic safety, through campaigns like "Could You Live With Yourself?" and "Everything Else Can Wait."
"The past year demonstrated that SGI can adapt quickly to serve its customers," Minister Responsible for SGI Don Morgan said. "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."
Other Auto Fund highlights for 2020-21 include:
- $285.0 million in rebates to customers;
- $785.5 million in claims paid;
- $988.7 million in gross premiums written;
- $156.9 million in discounts to customers through the Safe Driver Recognition (SDR) and Business Recognition programs;
- $18.9 million in net storm claims;
- Saskatchewan became the first jurisdiction in Canada to offer Mandatory Entry-Level Training (MELT) online for Class 1 (commercial) drivers;
- $1.3 million was provided to 116 communities across the province, through the Provincial Traffic Safety Fund Grant, to fund traffic safety projects like speed display signs, crosswalk and intersection improvements, speed bumps and more;
- Saskatchewan was the first province to resume driver's licence road tests, keeping applicants and examiners safe by using an innovative trail vehicle method; and
- Continued progress on traffic safety, with 2020 recording the second-lowest number of auto collision fatalities in Saskatchewan in the last six decades.
SGI CANADA sells property and casualty insurance in the competitive markets of Saskatchewan, Alberta, Manitoba, Ontario and British Columbia.
In 2020-21, SGI CANADA's financial performance was very strong, allowing SGI CANADA to provide a record $87.0 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."
Highlights for SGI CANADA in 2020-21 include:
- $172.1 million net income, with a pre-tax return on equity of 43.1 per cent;
- Record underwriting results led by operations outside of Saskatchewan;
- $128.7 million in investment earnings;
- $1.1 billion in direct premiums written, including $445.6 million (42 per cent) written outside Saskatchewan;
- $78.4 million in catastrophe claims (all provinces);
- More than 980,000 customers across Canada; and,
- In 2020, SGI CANADA launched a new commercial portal for brokers across Canada, improving the customer experience.