Released on April 20, 2006
SGI CANADA and the Saskatchewan Auto Fund each had a strong year financially, as outlined in SGI's 2005 Annual Reports tabled with the Legislative Assembly today.SGI CANADA had its second best year on record in 2005, posting a consolidated profit of more than $35 million, despite record storm costs of over $28 million in Saskatchewan. SGI CANADA is the competitive arm of the corporation, selling property and casualty insurance in Saskatchewan, Manitoba, Ontario and the Maritimes. SGI CANADA paid a dividend of $22.9 million to Crown Investments Corporation.
"SGI CANADA continued to expand its presence beyond Saskatchewan's borders – selling its products in Manitoba, Ontario and the Maritimes," Minister responsible for SGI Glenn Hagel said. "Forty-five per cent of the company's underwriting profit came from the business written in other provinces, despite the fact that 84 per cent of our premiums are written in Saskatchewan. Each of SGI CANADA's out of province operations were profitable in 2005 and continue to spread SGI's insurance risk, earn profits and create jobs in Saskatchewan."
Looking toward the future, SGI CANADA is planning to start selling insurance products in Alberta in 2006 with competitive pricing, coverage and service. SGI CANADA plans to write $50 million in premium income over the next five years from that market alone.
The Saskatchewan Auto Fund posted a $61 million surplus in 2005, resulting in a $163 million balance in the Rate Stabilization Reserve (RSR). The Saskatchewan Auto Fund is the compulsory auto insurance program administered by SGI on behalf of the government. The Auto Fund is like a trust fund for motorists, operating on a break-even basis over time, and a positive balance in the RSR means stability in auto insurance rates for Saskatchewan vehicle owners.
"SGI provided its customers with many new and innovative solutions in 2005," Hagel said. "New initiatives included more than doubling the discount provided under the Safe Driver Recognition program to 20 per cent, doubling the discount to 10 per cent under the Business Recognition Program, introducing a graduated driver's licence program for new drivers, providing increased injury income benefits to customers seriously injured before 1995 and launching the Auto eClaim registration service.
"In 2006, SGI will give back $45 million to 520,000 customers through an eight per cent rebate on the insurance premiums they paid for 2005 coverage. SGI customers will continue to enjoy the lowest auto insurance rates in Canada, with 2006 marking the sixth year in a row with no general increase to rates."
-30-
For More Information, Contact:
| Kim Hambleton SGI Regina Phone: (306) 775-6907 |