2022-23 SGI CANADA Annual Report slide image

2022-23 SGI CANADA Annual Report

23. Commitments and Contingencies The Corporation's systems and facilities contractual commitments are as follows: 2023-24 2024-25 (thousands of $) 2025-26 2026-27 2027-28 Commitments Systems contracts $ Facilities contracts 49,334 $ 793 21,510 $ 15,451 $ 11,517 $ 4,314 $ 50,127 $ 21,510 $ 15,451 $ 11,517 $ 4,314 In common with the insurance industry in general, the Corporation is subject to litigation arising in the normal course of conducting its insurance business. The Corporation is of the opinion that litigation will not have a significant effect on the financial position or results of operations of the Corporation. In addition, the effects of the COVID-19 pandemic related to emerging coverage issues and claims (class action lawsuits related to business interruption coverage) could negatively impact the Corporation's provision for unpaid claims liabilities. The Corporation's commercial insurance policies do not provide business interruption coverage in the context of a closure due to COVID-19 as direct physical loss or damage is required to trigger this coverage. In the event that these cases result in a significant judgment against the Corporation, the resulting liability could be material. Based on information currently known, the Corporation does not believe that the outcome of these cases will have a material impact on the consolidated financial statements. 24. Comparative Figures Certain comparative figures have been reclassified to conform to current year's presentation. 82 2022-23 SGI CANADA Annual Report
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