Released on April 23, 2007
SGI had a very strong year financially, as outlined in its 2006 Annual Reports tabled with the Legislative Assembly today.
The Saskatchewan Auto Fund enjoyed its second strongest year on record by posting a $101 million surplus in 2006, resulting in a record-level $206 million balance in the Rate Stabilization Reserve (RSR). The Saskatchewan Auto Fund is a self-sustaining, compulsory auto program administered by SGI on behalf of the government.
In 2006, SGI returned $44 million to 520,000 customers through an eight per cent rebate on the insurance premiums paid for 2005 coverage. Due to strong financial results in 2006 which put the Auto Fund in the best financial position in its history, SGI recently returned an additional $100 million to over 544,000 customers through a rebate on the insurance premiums paid for 2006 coverage.
“In addition to customer rebates, the strong financial position of the Auto Fund prompted SGI to apply to reduce and rebalance rates in 2007,” Minister responsible for SGI Glenn Hagel said. “Saskatchewan residents already enjoy the lowest automobile insurance rates in the country, and if the rate application is approved more than half of SGI customers will be paying even less.”
SGI CANADA had its most financially successful year ever in 2006, posting a profit of $52 million. The success is due to the continued success of expansion efforts outside of Saskatchewan, which posted a record profit of $13 million, as well as reduced storm activity across the country. SGI CANADA is the competitive arm of the corporation, selling property and casualty insurance in seven provinces. SGI CANADA entered the Alberta market and expanded its presence in the Maritimes in 2006.
“SGI CANADA’s expansion efforts continue to spread insurance risk, earn profits and create jobs,” SGI president Jon Schubert said. “Each of the out-of-province operations were profitable in 2006, making up 25 per cent of SGI CANADA’s consolidated profit, despite the fact that only 17 per cent of premiums are written outside Saskatchewan.”
SGI CANADA paid a dividend of $33.9 million to Crown Investments Corporation in 2006.
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For more information, contact:
Shaun Humphries
SGI
Regina
Phone: 306-775-6907
Email: shumphries@sgi.sk.ca