The president of Saskatchewan Government Insurance (SGI) has confirmed that the insurer has had talks with 16 companies over a potential partial sale of the Crown corporation after the provincial government passed legislation that allowed the partial sale of Crown corporations such as SGI back in April.
“There’s some interest in the industry in terms of what SGI is looking for, but quite honestly nothing has progressed much beyond that yet,” SGI president Andrew Cartmell said.
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Joe Hargrave, minister of Crown Investments Corporation, told CBC that the insurer has no definite timeline in considering proposals for the partial sale. Hargrave also added that any partnership formed from the partial sale would ensure that SGI’s head office and all of its employees remain in the province.
According to
SGI Canada’s 2016-17 annual report (which was tabled last Thursday) the Saskatchewan Auto Fund – administered by SGI – handled almost $800 million in claims in 2016-17, which included $26.7 million in net storm claims. The fund recorded $933.5 million in gross premiums written for 2016-17.
SGI posted a $65.2 million profit for 2016-17, with $738.9 million in premiums - 32.3% of those premiums were written outside Saskatchewan. The insurer paid a $43 million dividend to Saskatchewan’s Crown Investments Corporation.
NDP MLA for Regina, Carla Beck, finds the potential partial sale of SGI dubious, citing the growth the insurer has enjoyed in recent times.
“The contrast here is that despite SGI doing their job and keeping rates low in Saskatchewan, we’ve seen the provincial government apply a 6% increase by applying our PST to insurance premiums,” she said last week.
Beck also argued that by exploring potential partnerships, the government has placed SGI’s dividends in “peril.”
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Saskatchewan premier confirms potential partial sale of SGI
