2022-23 SGI CANADA Annual Report slide image

2022-23 SGI CANADA Annual Report

Quarterly Consolidated Financial Highlights The following table highlights quarter-over-quarter results for the Corporation: (thousands of $) 2022-23 2021-22 2023 2022 Q4 Q3 Net premiums written Net premiums earned 202,953 286,839 Net claims incurred 138,325 Net income (loss) 62,912 31,800 (50,245) Q2 315,332 331,509 321,475 292,220 283,460 270,704 178,511 229,908 154,448 (20,020) Q1 Q4 Q3 Q2 Q1 1,171,269 1,133,223 197,873 282,103 296,283 293,873 1,070,132 262,635 701,192 153,366 140,573 24,447 (19,299) 49,267 265,482 255,839 252,537 1,036,493 184,712 115,738 594,389 (13,270) 65,074 81,772 Cash flow (used in) from operating activities (25,652) Investments 1,461,881 70,960 1,447,640 1,380,244 1,355,998 8,418 53,696 107,422 (24,819) 1,351,320 113,214 1,435,201 1,350,691 1,318,768 35,325 52,890 176,610 Provision for unpaid claims 791,736 809,343 817,585 753,235 740,299 714,755 735,347 640,777 Minimum Capital Test 233% 207% 204% 238% 242% 254% 253% 281% The following points are intended to assist the reader in analyzing trends in the quarterly financial highlights: . • Claims incurred typically peak in the second quarter due to catastrophe claims for events such as hail storms, flooding and forest fires that can occur. With the exception of the fourth quarter, the Corporation typically generates positive cash flow from operations. Cash is typically low during that quarter as the Corporation pays its annual premium taxes to the provincial jurisdictions in March. Operating cash flows are generally strong throughout the remaining nine months of the year and during these months excess cash generated is directed to investments. Related Party Transactions The Corporation is related in terms of common ownership to all Government of Saskatchewan ministries, agencies, boards, commissions, Crown corporations and jointly controlled and significantly influenced corporations and enterprises. Routine operating transactions with related parties are recorded at the exchange amount, which is the amount of consideration established and agreed to by the related parties. Further details regarding these related party transactions are disclosed in note 20 of the consolidated financial statements. Details of other significant related party transactions are disclosed in the consolidated financial statements. The Corporation acts as the administrator of the Auto Fund on behalf of the Province of Saskatchewan. The Corporation incurs administrative and claim adjustment expenses on behalf of the Auto Fund, which are charged to the Auto Fund directly or on the basis of specific distributions. Amounts incurred by the Corporation and charged to the Auto Fund were $257.8 million (2022 - $207.5 million). Off-Balance Sheet Arrangements The Corporation, in its normal course of operations, enters into certain transactions that are not required to be recorded on its Consolidated Statement of Financial Position - commonly referred to as the balance sheet. These items include litigation, structured settlements and long-term contracts. These items are discussed below and in note 23 to the consolidated financial statements. 22 2022-23 SGI CANADA Annual Report
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