2022-23 SGI CANADA Annual Report
The table below shows the comparison of ROE within the Consolidated Statement of Operations to the ROE included
in the Corporate Goals and Measures.
Consolidated Statement of Operations
Average total equity
Income before income taxes
ROE
Corporate Goals and Measures
Average total equity
Income before taxes
Add back: External Corporate Transformation costs
ROE
(thousands of $)
2022-23
541,675
18,041
3.3%
541,675
18,041
38,615
56,656
10.5%
In 2023-24, the Corporation is targeting higher investment earnings, thus is increasing the target for the ROE,
excluding external Corporate Transformation costs, to 14.2%.
The Corporation measures growth through its consolidated direct premium written. With $1,260 million in direct
premium written, SGI CANADA met its target of $1,214 million in direct premium written and posted a year-over-year
increase of 10.1%. In 2023-24, further growth is targeted.
The Corporation also monitors capital adequacy. While not a measure of profitability or growth, it speaks to
the Corporation's ability to honour its financial obligations, which is a critical financial metric. The industry
measurement developed by insurance regulators for capital adequacy is the Minimum Capital Test (MCT). The MCT is
a risk-based capital adequacy framework that assesses the risk associated with company assets, policy liabilities and
off-balance sheet exposures by applying varying factors. From these calculations comes a ratio of capital available
to capital required. As discussed in the "Capability to Execute Strategies, Financial Capital" section that follows,
the Corporation has established internal MCT targets that provincial regulators have adopted as minimum targets
for regulatory purposes. SGI CANADA's consolidated MCT of 233% met the 2022-23 target.
Customer
The Corporation assesses success with customers by its ability to provide them with a positive customer experience.
Measure
Customer experience
Customer experience index
Legend: achieved o not achieved
Customer experience
2022-23 Target
72
2022-23 Result
2023-24 Target
76
76
With a focus on enhancing the overall experience being provided to customers, the company uses a customer
experience index to assess customers' perceptions of their relationship with the company. A combined SGI CANADA and
Auto Fund score is used, as Saskatchewan customers do not differentiate between the two companies. A score of 76 was
achieved, exceeding the 2022-23 target of 72. SGI CANADA aims to maintain customer experience levels in 2023-24.
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