SGI is expanding its business again, which should be good news for provincial coffers.
This month SGI Canada starts selling commercial insurance products to customers in British Columbia.
B.C. is a natural fit for SGI according to Andrew Cartmell, president and CEO of the company.
“We’re always paying attention to market position, and B.C. is a province with strong growth potential. This market fits well with SGI Canada’s particular expertise in western Canada’s construction, transportation and oil and gas industries,” he said.
“Our experience with resource-based industries runs deep, which means we have the capacity to develop innovative products with distinctive coverage to meet the specific needs of B.C. customers.”
Now in five provinces, SGI believes spreading risk geographically will strengthen its profitability, which means greater dividends for Saskatchewan.
In 2014, SGI contributed $31.6 million to the provincial balance sheet despite paying out $56.2 million in flood claims, the most in the company’s history.
“SGI Canada produced a strong profit despite substantial summer storm costs in 2014,” said Don McMorris, minister responsible for SGI. “This allowed the corporation to contribute a significant dividend for government to invest in the programs and services Saskatchewan people rely on.”
The other side of SGI’s business, the not-for-profit Auto Fund also did well in 2014, replenishing its Rate Stabilization Reserve (RSR), which has taken a hit in recent years due to higher than anticipated injury costs and volatile investment earnings.
McMorris also praised the company for its management of the Auto Fund.
“In 2014, the Saskatchewan Auto Fund continued to provide the province’s motorists with reasonable prices, solid coverage and quality service while also meeting the needs created by more drivers and vehicles on our roads and highways,” he said.
SGI Canada also has plans to sell home insurance products in B.C. starting in 2016.
