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April 19, 2004
SGI POSTS STRONG FINANCIAL RESULTS IN 2003
SGI CANADA and the Saskatchewan Auto Fund each had a strong year
financially, as outlined in its 2003 Annual Reports tabled with
the Legislative Assembly today. The Crown corporation also tabled
annual financial statements for its pension plan and subsidiaries.
Following a challenging year in 2002, SGI CANADA experienced a
financial turnaround. SGI CANADA posted a consolidated profit of
$21.2 million in 2003 - a turnaround of $30 million in one year.
Each company on the competitive side of the business was profitable
in 2003. Most dramatically, Coachman Insurance Company in Ontario
made a profit of over $320,000 in 2003, following a net loss of
$11.3 million in 2002.
"In 2001 and 2002, the insurance industry across Canada suffered
two of its worst financial years on record," said the Minister
responsible for SGI Maynard Sonntag. "Poor underwriting results,
increased reinsurance costs and less than average investment income
hit the industry hard. SGI CANADA met these challenges head on,
and reported the close to record profit due to its strategic business
planning."
The Saskatchewan Auto Fund posted an $11.5 million surplus in
2003, increasing the balance in the Rate Stabilization Reserve (RSR)
to $14.4 million. The Saskatchewan Auto Fund is the compulsory auto
insurance program administered by SGI on behalf of the people of
Saskatchewan. The Fund operates on a break-even basis over time,
and a positive balance in the RSR helps to keep auto rates low for
Saskatchewan motorists.
"In a year where auto insurance premiums rose by an average
of 22 per cent across the country according to Statistics Canada,
SGI did not increase rates last year and has not done so since 2000,"
Sonntag said. "In fact, SGI's auto insurance rates remain among
the lowest in Canada. This was accomplished while also increasing
the maximum discount provided under the Safe Driver Recognition
program, putting $22 million in premiums back into the pockets of
Saskatchewan vehicle owners last year."
For more information, contact:
Julianne Jack
SGI Communications
Regina
Phone: (306) 775-6907
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