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April 12, 2005
SGI POSTS STRONG FINANCIAL RESULTS IN 2004
SGI CANADA and the Saskatchewan Auto Fund each had a strong year financially,
as outlined in its 2004 Annual Reports tabled with the Legislative Assembly
today. The Crown corporation also tabled annual financial statements
for its pension plan and subsidiaries.
SGI CANADA had its best year on record in 2004, posting a consolidated
profit of $42 million – nearly double that of last year – and
as a result, paid a dividend to the province of $27 million. SGI CANADA’s
success in 2004 resulted from ensuring rates accurately reflect risk through
disciplined underwriting. The absence of severe summer storms and good investment
earnings were also major contributors.
“SGI CANADA continued to expand its presence beyond Saskatchewan’s
borders and each subsidiary posted a profit in 2004,” Minister
Responsible for SGI, Maynard Sonntag said. “Out of province operations
continue to spread SGI’s insurance risk, earn profits, and create
jobs in Saskatchewan.”
The Saskatchewan Auto Fund posted a $125 million surplus in 2004, resulting
in a $140 million balance in the Rate Stabilization Reserve (RSR). 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 insurance rates the lowest in Canada.
“This year SGI had one of its most successful years ever financially,” the
Minister Responsible for SGI, Maynard Sonntag said. “The Auto
Fund’s strong showing in 2004 is due in large part to an external
actuary’s lowered estimate of unpaid claims from prior years, increased
investment earnings, and lower than average summer storm damage claims.”
“Saskatchewan customers continued to benefit from the lowest automobile
insurance rates in Canada in 2004," Sonntag said. “While
maintaining the lowest rates in the country, SGI provided its customer with
many new and innovative solutions in 2004, such as the Business Recognition
Program, simplifying the vehicle registration system, a single licence plate
system, the Deductible Payment Plan, the Auto eClaim registration service
and a special licence plate for Saskatchewan veterans.”
Media only contact:
Deanne Cairns
SGI Communications
Regina
(306) 751-1347
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