Rising vehicle repair costs and a wave of extreme weather have forced Saskatchewan Government Insurance (SGI) to take a disciplined financial approach to protect the long-term sustainability of its provincial Auto Fund.
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According to its 2025-26 annual report released Tuesday, the Crown corporation faced another challenging fiscal year as inflation continued to drive up the cost of vehicle replacements and claims.
“Even in a difficult environment, SGI continues to provide some of the lowest auto insurance rates in the country, advance road safety and support communities as they strengthen infrastructure,” Jeremy Harrison, the minister responsible for SGI, said in a news release.
The Saskatchewan Auto Fund recorded $1.191 billion in total net claims incurred over the past fiscal year, slightly outpacing its $1.177 billion in gross written premiums. To offset these pressures, the fund leaned on $170.3 million in investment earnings.
The Rate Stabilization Reserve, which acts as a financial cushion to protect drivers from sudden rate hikes, sat at $633.6 million after a reduction of $93.3 million.
Despite the tightening margins, SGI maintained its customer discount programs, distributing $189.5 million through its Safe Driver Recognition and Business Recognition initiatives. The corporation also allocated $3.5 million in grants to 139 local community projects via the Provincial Traffic Safety Fund.
Meanwhile, SGI’s competitive out-of-province property and casualty insurance arm, SGI CANADA, saw stronger financial results.
The division posted a net income of $75.7 million following a 3.4 per cent premium growth across all operating provinces, which include Alberta, Manitoba, Ontario, and British Columbia. The strong performance allowed SGI CANADA to return a $16-million dividend to the province.
SGI CANADA also managed $143.5 million in net catastrophe claim losses and maintained $1.474 billion in gross written premiums over the fiscal year.
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