2022-23 SGI CANADA Annual Report slide image

2022-23 SGI CANADA Annual Report

President's Message I'm honoured to present the 2022-2023 Annual Report for the first time as President and CEO of SGI CANADA. This has been a challenging year for our industry as we've faced frequent catastrophic weather events, high numbers of claims, and rising costs due to inflation, supply chain pressures and labour challenges. Despite these challenges, SGI CANADA employees and partners have responded with drive and a sense of purpose to provide the best possible service to our customers. SGI CANADA has had another successful year because of their efforts. Insurance operations SGI CANADA achieved an overall net income of $24.4 million in 2022-23, driven by investment earnings. Our gross premium written was $1.26 billion for the fiscal year and, in the 2022 calendar year, we outperformed the insurance industry average growth rate. Going into the year, we anticipated lower profits due to industry challenges and higher administrative costs associated with a corporate-wide project to update our business processes and technology. We achieved a combined ratio of 102.2%, which was slightly better than the projection. Because of the modest financial performance, for the first time in 12 years, SGI CANADA did not provide a dividend to the Government of Saskatchewan. Business process, technology and corporate culture renewal SGI's project to adapt business processes, refine products and services, and replace technology platforms to meet the needs of customers and partners is at the heart of our strategic plan. In 2022-23 we focused on attracting and retaining employees to fill critical roles as we established new areas of expertise, such as a data management office. We focused on system design and development, and also determined project priorities and associated benefits as part of the initial implementation stage. We've also developed comprehensive training, consultation and communications strategies to ensure employees and partners receive the information and support they need. SGI's culture is another important aspect of our efforts to transform our business. We're focused on creating a culture that recognizes and values differences, and an environment where people feel safe to be their authentic selves and contribute their best. With that in mind, in 2022-23 we moved forward to reduce barriers and biases to employment and career development, and increased events for employees to learn about and celebrate diverse cultures. As a signatory to Saskatchewan's Indigenous Engagement Charter, we improved how we engage and elevate Indigenous voices in our communities and workplace. We also refined recruitment processes to ensure we keep attracting the talent, skills, innovation and leadership the company needs for the future. Claims SGI CANADA experienced large claim losses again this year. Across Canada, the number of claims registered in 2022-23 increased by 6%. Twelve storms across the country were classified as catastrophic events, up from seven in 2021; they resulted in $80.8 million in catastrophic claim losses. The SGI CANADA claims team continued to do an outstanding job, responding with caring and efficient service. In Saskatchewan, we implemented a shared-file approach for low complexity property claims to enhance service to customers. SGI CANADA piloted two environmental initiatives in 2022-23: reimbursements for sewer backwater valves and shingle tabbing to prevent property damage. We also launched an Alternative Risk Unit to help more Saskatchewan businesses find insurance coverage for hard-to-place risks. These are examples of innovation that will help SGI CANADA provide the coverage and excellent service customers need. 2022-23 SGI CANADA Annual Report 3
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