2022-23 SGI CANADA Annual Report
Financial
The Corporation measures financial results in terms of profitability, growth and capital adequacy:
Measure
Profitability and growth
Combined ratio*
Pre-tax return on equity*
Direct premium written
Minimum Capital Test
Legend: achieved o not achieved
2022-23 Target
2022-23 Result
2023-24 Target
100.1%
9.4%
$1,214M
233%
● 98.8%
● 10.5%
101.8%
14.2%
⚫ $1,260M
$1,387M
233%
220%
* To eliminate potential volatility related to Corporate Transformation expenses, external Corporate Transformation costs are excluded from
SGI CANADA's pre-tax return on equity and combined ratio on the balanced scorecard.
Profitability and growth
SGI CANADA operates to provide a return to the Province of Saskatchewan and seeks to maximize this return
through improved profitability and growth.
The Corporation measures profitability through its combined ratio and pre-tax return on equity (ROE).
A combined ratio below 100% indicates that the company is making an underwriting profit, while a ratio above 100%
means that it's paying out more money in claims and expenses than it's receiving from premiums. During the year,
the Corporation had a underwriting loss and a combined ratio of 102.2%. When external Corporate Transformation
costs were excluded from the calculation for the purposes of the Corporate goals and measures, the combined ratio
was 98.8% and better than the target of 100.1%.
The table below shows the comparison of the combined ratio within the Consolidated Statement of Operations to
the combined ratio included in the Corporate Goals and Measures.
Consolidated Statement of Operations
Net premiums earned
Total claims and expenses
Combined ratio
Corporate Goals and Measures
Net premiums earned
Total claims and expenses
Less: External Corporate Transformation costs
Combined ratio
(thousands of $)
2022-23
1,133,223
1,157,950
102.2%
1,133,223
1,157,950
(38,615)
1,119,335
98.8%
In 2023-24, the Corporation is targeting a combined ratio, excluding external Corporate Transformation costs,
of 101.8% driven by rising claim costs and expenses associated with higher inflation.
The ROE compares profit to the investment in the Corporation. During the year, the Corporation achieved a pre-tax
ROE of 3.3%. When external Corporate Transformation costs were excluded from the calculation for the purposes of
the Corporate goals and measures, the ROE was 10.5% and better than the target of 9.4%.
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