2022-23 SGI CANADA Annual Report
The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and
deferred income tax liabilities are presented below:
Deferred income tax asset
(thousands of $)
Provision for
unpaid claims
Other
Total
At March 31, 2021
$
4,569
$
106
$
4,675
Credit reflected in income tax expense
651
10
At March 31, 2022
5,220
116
661
5,336
Credit reflected in income tax expense
567
21
588
At March 31, 2023
$
5,787
$
137
$
5,924
Deferred income tax liability
(thousands of $)
Unpaid claims
recoverable from
reinsurers
Other
Total
261
$
197
$
458
155
(171)
(16)
416
26
442
(64)
(14)
(78)
$
352
$
12
$
364
At March 31, 2021
$
Charge (credit) reflected in income tax expense
At March 31, 2022
Credit reflected in income tax expense
At March 31, 2023
The Corporation expects that the deferred tax asset will be realized in the normal course of operations.
16. Insurance and Financial Risk Management
The Corporation has established an enterprise risk management policy. The Board of Directors approved this policy
and management is responsible for ensuring it is properly maintained and implemented. The Board of Directors
receives confirmation that the risks are being appropriately managed through regular reporting from management.
Insurance risk arises with respect to the adequacy of the Corporation's insurance premium rates and provision
for unpaid claims (consisting of underwriting and actuarial risks). The nature of insurance operations also result in
significant financial risks, as the Corporation's Consolidated Statement of Financial Position consists primarily of
financial instruments. Financial risks that arise are credit risk, market risk (consisting of interest rate risk, foreign
exchange risk and equity price risk) and liquidity risk.
2022-23 SGI CANADA Annual Report 63View entire presentation