Released on April 14, 2008
SGI had a strong year financially, as outlined in its 2007 annual reports tabled with the Legislative Assembly today.
The Saskatchewan Auto Fund enjoyed a solid year, posting a $32 million surplus in 2007 before customer rebates. At year end, the balance in the Rate Stabilization Reserve was a healthy $141 million. The Saskatchewan Auto Fund is a self-sustaining, compulsory auto insurance plan administered by SGI on behalf of the government.
In 2007, the Auto Fund returned approximately $100 million to over half a million vehicle owners in Saskatchewan through an almost 17 per cent rebate on 2006 insurance premiums. The Auto Fund also introduced a 7.1 per cent rate reduction with rate rebalancing, meaning about 448,000 Saskatchewan vehicle owners saw a reduction in their premiums.
"Saskatchewan residents continue to enjoy the lowest automobile insurance rates in the country and that trend will continue in 2008," Crown Corporations Minister Ken Cheveldayoff said. "The Auto Fund is committed to providing the best customer-driven and affordable automobile insurance plan in Canada."
SGI CANADA also had another successful year in 2007, posting a profit of $35.1 million. SGI CANADA's financial results dropped from 2006 due to a number of severe summer storms that swept across Saskatchewan causing an increase in claim costs. SGI CANADA is the competitive arm of the corporation, selling property and casualty insurance.
"We are very pleased that, in spite of the increase in storm activity, SGI CANADA earned a healthy profit in 2007," SGI president Jon Schubert said.
SGI CANADA paid a dividend of $22.8 million to Crown Investments Corporation in 2007.
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For more information, contact:
Tim Kydd
Saskatchewan Government Insurance
Regina
Phone: 306-775-6739
Email: tkydd@sgi.sk.ca