SGI had strong year financially despite COVID challenges

According to the annual reports it tabled Tuesday, SGI successfully withstood the impacts of COVID-19 during the 2020-21 fiscal year.

The Crown corporation’s Auto Fund was able to provide the largest rebate program ever to registered vehicle owners in the province, and its property and casualty insurance arm performed so well financially that it was able to give a record $87-million dividend to the Government of Saskatchewan.

“The past year demonstrated that SGI can adapt quickly to serve its customers,” Minister Responsible for SGI Don Morgan said in a media release.

“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.”

The Auto Fund benefited from strong investment earnings of $508.5 million and lower-than-expected collision claims during the year — mainly because people were working from home due to COVID and therefore fewer vehicles were on the road.

SGI paid out $285 million in rebates to customers, $156.9 million in discounts to customers through the Safe Driver Recognition and Business Recognition programs, $785.5 million in vehicle claims, and $18.9 million in net storm claims.

It wrote $988.7 million in gross premiums and gave $1.3 million to 116 communities across the province through the Provincial Traffic Safety Fund Grant for traffic safety projects.

The company also reported the second-lowest annual total of fatalities in traffic accidents — 87 — in the past 60 years.

SGI CANADA sells property and casualty insurance in Saskatchewan, Alberta, Manitoba, Ontario and British Columbia.

It generated $172.1 million in net income, with $128.7 million in investment earnings. The company wrote $1.1 billion in direct premiums (including $445.6 million outside Saskatchewan) and paid out $78.4 million in catastrophe claims in all of the provinces it serves.

“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.”