2022-23 SGI CANADA Annual Report
5. Accounts Receivable
Accounts receivable is comprised of the following:
(thousands of $)
2023
2022
Due from insureds
Due from brokers
Amounts recoverable on claims paid
Due from reinsurers
Other
Due from Saskatchewan Auto Fund (note 20)
Accrued investment income
Facility Association (note 21)
$
222,076 $
199,675
55,597
52,857
40,404
35,163
14,636
18,520
7,400
6,400
7,280
12,563
5,576
4,108
5,425
3,831
358,394
333,117
Less: Allowance for doubtful accounts (note 16)
Total accounts receivable
(33,995)
(32,062)
$
324,399 $
301,055
Current
$
315,731 $
292,503
Non-current
8,668
8,552
$
324,399 $
301,055
Included in due from insureds is $216.0 million (2022 - $193.0 million) of financed premiums receivable, which
represents the portion of policyholders' monthly premium payments that are not yet due. The majority of
policyholders have the option to pay a portion of the premium when the policy is placed in force and the balance in
monthly instalments. The policyholder pays an additional charge for this option, reflecting handling costs and the
investment earnings that would have been earned on such premium, had the total amount been collected at the
beginning of the policy period. The additional charge is recognized in investment earnings using the effective interest
method. The effective interest rate for Ontario automobile policies is 3.5% (2022 - 3.5%), all other premiums have an
effective interest rate of 8.0% (2022 - 8.0%).
Due from brokers includes loans receivable with a carrying value of $9.8 million (2022 - $9.2 million). The loans
require monthly, semi-annual, or annual repayments with terms ranging between one to 15 years. The loans accrue
interest at rates ranging from 0.0% to 6.0% (2022 -0.0% to 6.5%) and are secured by general security agreements.
The loans are recorded at their amortized cost, which is considered to be equal to their fair value.
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.
2022-23 SGI CANADA Annual Report 51View entire presentation