Potential SGI sales discussed with 16 companies
Published: July 31, 2017
Updated: July 24, 2018
Author: Luke Jones
CATEGORY: Industry News
The idea that part of Saskatchewan Government Insurance (SGI) will be sold has gathered pace in recent months. The public insurance provider has passed through a phase of denying a sale and has since admitted that a partial offload is possible.
Now, SGI’s president says the insurer has had conversations with 16 companies about the potential partial sale. However, none of those conversations have gone beyond that and there is no progress on finding a partial buyer of the Crown corporation.
"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," said Andrew Cartmell, president of SGI.
SGI can seek a buyer after Saskatchewan passed new laws in April to allow the partial sale of a Crown corporation. Minister Joe Hargrave says there is no set timeframe for when a potential sale would happen.
One stipulation of a sale would be the company’s headquarters and all jobs remain within Saskatchewan.
During 2016, the Saskatchewan Auto Fund handled nearly $800 million in claims, according to the fiscal report announced this week.
SGI issues the Auto Fund is a compulsory auto insurance program that protects vehicles for damage, liability, injury, and damage coverage. It also handles vehicle registration and driver licenses.
The Auto Fund saw net claims incurred of $798 million in the 2016/2017 terms, a $63 million increase year-on-year. So far this year, claims are at $835.9 million, while current damage claims are $527 million excluding storm claims.
“Storm claim losses totalled $26.7 million in 2016-17, primarily due to a July hailstorm in Moose Jaw and surrounding area,” SGI CEO Andrew Cartmell wrote in the annual report.