By Courtney Markewich

SGI sees record storm costs in 2014

Apr 15, 2015 | 1:48 PM

SGI is reporting 2014 as a strong and steady year even though it brought the highest net storm costs in SGI CANADA’S history.

On Tuesday, SGI released its annual report for both its competitive arm, SGI CANADA, and the Saskatchewan Auto Fund.

SGI Canada – which also sells property and casualty insurance in Saskatchewan, Alberta, Manitoba and Ontario – paid out $56.2 million in storm claims with $49.5 million of that the result of claims from Saskatchewan alone. The total represents the highest net storm costs in SGI Canada’s history.

“SGI Canada produced a strong profit despite substantial summer storm costs in 2014,” Minister responsible for SGI Don McMorris said in a news release.

“The strong results show that SGI Canada’s three-pronged strategy in 2014 paid off – continuing to spread risk geographically to offset large losses and protect customers in all regions; focusing on maintaining market share in Saskatchewan; and, managing finances wisely to ensure strong investment returns.”

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It also paid a $31.6 million dividend to Crown Investments Corporation.

Meanwhile, the increase the Saskatchewan Auto Fund has seen in the costs for those hurt in crashes has gone up faster than expected. Along with “volatile investment earnings”, the Rate Stabilization Reserve was depleted. According to the Crown, the reserve was partially replenished thanks to the auto fund’s performance throughout the year.

Expenses for the auto fund, excluding claims, were $169 million, up $7.9 million from 2013 due to the traffic safety program, premium taxes and administrative expenses.

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by Courtney Markewich

SGI sees record storm costs in 2014

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