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SGI is one of the few big Crown corporations in Saskatchewan not expecting to see a big impact from the COVID-19 pandemic on its bottom line.
The company tabled its annual report Thursday for the fiscal year ending March 31.
That report shows big losses in investments for both the Auto Fund and SGI Canada, which does business across the country.
When markets dropped because of the pandemic in March, the Auto Fund lost about $200 million, which SGI chief financial officer Jeff Stepan called a direct hit to the rate stabilization reserve.
SGI Canada’s investments declined by about $40 million.
The fiscal year ended right after those losses but Stepan said the investments have now pretty much rebounded.
SGI also saw a number of customers deregistering their vehicles when the pandemic started because they either had decided to drive only one vehicle or not to drive at all. However, those are starting to come back as the economy opens again.
SGI Canada has seen a reduction in premiums on the commercial side as businesses just aren’t as active as they were. Stepan said that part of the company saw a minor decline in premiums but nothing really of note.
Stepan said it’s early days, but the company isn’t expecting any significant effects from the pandemic.
According to Joe Hargrave, the minister responsible for SGI, that means no increase in premiums.
“We have sort of survived the COVID-19 downslide in our investment market and now it’s shown some recovery in the first quarter of this year and that should be — and will be, we expect — sufficient to maintain our rate stabilization reserve intact the way it is so that we won’t have any need for increase in rates here at all,” Hargrave said Thursday.
Good news
SGI also celebrated a milestone in the annual report.
“In 2019, there were historic lows in the number of deaths and injuries on Saskatchewan roads, and the number of people killed as a result of impaired driving deaths was 61 per cent lower than the average over the previous decade,” Hargrave said in a media release.
“While the people of Saskatchewan deserve much of the credit, SGI’s work alongside partners in government, law enforcement, and community organizations has made a significant contribution toward changing driving habits and improving safety on our roads.”
According to the report, there were 71 fatalities and 3,850 injuries on Saskatchewan roads in 2019. That was the lowest number of traffic deaths in Saskatchewan since the province began tracking the data in 1951.
The numbers
The Saskatchewan Auto Fund — the auto insurance plan operated by SGI on behalf of the province — dealt with $889.3 million in claims during the year and wrote $962.7 million worth of gross premiums.
The fund paid out $151.5 million in discounts through its Safe Driver Recognition and Business Recognition programs, as well as $29.3 million in net storm claims.
SGI Canada had a net income of $49.9 million during the fiscal year and paid a $54.3-million dividend to the provincial government.
The company wrote $1 billion in direct premiums, including $418.9 million (42 per cent) outside Saskatchewan. That achieved SGI Canada’s stated goal of 40 per cent of premiums written outside the province one year ahead of its original target.
