Saskatchewan’s public insurer is reporting a good year overall in 2014.
SGI released its financial and operational highlights when the 2014 annual reports for SGI and the Saskatchewan Auto Fund were tabled in the Legislative Assembly this week.
SGI is the competitive arm of SGI, selling property and casualty insurance in Saskatchewan, Alberta, Manitoba and Ontario. The corporation says it achieved strong premium growth last year, largely from Saskatchewan and Alberta markets.
This, combined with strong investment earnings, resulted in a consolidated profit of $40.7 million.
Don McMorris, minister responsible for SGI, credited the corporation’s three-pronged strategy of spreading risk geographically, focusing on maintaining market share in Saskatchewan and managing finances wisely.
The other side of SGI’s operations, the Saskatchewan Auto Fund, is the self-sustaining, compulsory auto insurance plan administered by SGI on behalf of the province. It is a public fund for motorists, cannot pay dividends and is not intended to earn profits.
SGI says the Auto Fund has experienced financial challenges in recent years. Costs for those injured in auto crashes have grown faster than anticipated, and, coupled with volatile investment earnings, have resulted in the Rate Stabilization Reserve (RSR) being depleted.
The RSR acts as a cushion against unforeseen events, such as higher-than-anticipated claim costs.
In 2014, SGI said its investment strategy helped the Auto Fund achieve strong earnings on its portfolio, and more registered vehicles resulted in a growth in premiums.
