2022-23 SGI CANADA Annual Report
Accounts receivable are primarily from customers, diversified among residential, farm and commercial, along with
amounts from brokers across the provinces that the Corporation operates in. Accounts receivable generally consist
of balances outstanding for one year or less.
Current
30 - 59 days
60-90 days
Greater than 90 days
Subtotal
Allowance for doubtful accounts
Total accounts receivable
(thousands of $)
2023
2022
$
315,411 $
294,912
3,349
4,001
3,558
773
36,076
33,431
358,394
333,117
(33,995)
(32,062)
$
324,399 $
301,055
The Corporation applies the simplified approach to providing for expected credit losses as prescribed by IFRS 9,
which permits the use of lifetime expected loss provision for all trade receivables. Provisions for credit losses are
maintained in an allowance account and are regularly reviewed by the Corporation. Amounts are written off once
reasonable collection efforts have been exhausted. The allowance mainly relates to amounts outstanding greater
than 90 days.
Details of the allowance account are as follows:
(thousands of $)
2023
2022
Allowance for doubtful accounts, beginning of the
year
$
32,062 $
34,181
Accounts written off
Current period provision
(7,302)
9,235
(8,714)
6,595
Allowance for doubtful accounts, end of the year
$
33,995 $
32,062
Concentrations of credit risk for insurance contracts can arise from reinsurance ceded contracts as insurance ceded
does not relieve the Corporation of its primary obligation to the policyholder. Reinsurers are typically required to
have a minimum financial strength rating of A- at the inception of the treaty; rating agencies used are A.M. Best and
Standard & Poor's. Guidelines are also in place to establish the maximum amount of business that can be placed
with a single reinsurer.
Credit risk within investments is related primarily to short-term investments, bonds and debentures and mortgage
investment fund. It is managed through the investment policy that limits debt instruments to those of high credit
quality (minimum rating for bonds and debentures is BBB, and for short-term investments is R-1) along with limits to
the maximum notional amount of exposure with respect to any one issuer.
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