Full report - SGI Canada

More documents

Recommendations

Info

RESPonsibiliTY for financial statements The new strategic plan also recognizes the important role technology will play. An eServices strategy has been established with an objective to gain efficiencies and improve productivity in both the Corporation’s and its brokers’ business processes, adding value to the broker partnership and improving overall competitiveness. In addition, the Corporation has embarked on a business intelligence project that leverages data to assist with obtaining more profitable business, more accurately pricing risks and better managing and controlling claim costs. Phased-in implementation of aspects of this project will begin in late 2011. Heading into 2011, SGI CANADA has the expertise of its employees and a clear strategic direction to guide the Corporation to continued success in the competitive Canadian insurance marketplace. The consolidated financial statements are the responsibility of Management and have been prepared in conformity with accounting principles generally accepted in Canada. In the opinion of Management, the consolidated financial statements fairly reflect the financial position, results of operations and cash flows of Saskatchewan Government Insurance (the Corporation) within reasonable limits of materiality. Preparation of financial information is an integral part of Management’s broader responsibilities for the ongoing operations of the Corporation. Management maintains an extensive system of internal accounting controls to ensure that transactions are accurately recorded on a timely basis, are properly approved and result in reliable financial statements. In this regard, an annual statement of management responsibility is provided on the following page. In addition, the adequacy and operation of the control systems are monitored on an ongoing basis by an internal audit department. An actuary has been appointed by the Corporation to carry out a valuation of the policy liabilities in accordance with accepted actuarial practice and common Canadian insurance regulatory requirements. The policy liabilities consist of a provision for unpaid claim and adjustment expenses on the earned portion of policies and of future obligations on the unearned portion of policies. In performing this valuation, the actuary makes assumptions as to future rates of claim frequency and severity, inflation, reinsurance recoveries, expenses and other contingencies, taking into consideration the circumstances of the Corporation and the nature of the insurance policies. The actuary also makes use of Management information provided by the Corporation and the work of the external auditors in verifying the data used in the valuation. The consolidated financial statements have been examined and approved by the Board of Directors. An Audit and Finance Committee, composed of members of the Board of Directors, meets periodically with financial officers of the Corporation and the external auditors. These external auditors have free access to this committee, without Management present, to discuss the results of their audit work and their opinion on the adequacy of internal financial controls and the quality of financial reporting. As appointed by the Lieutenant Governor in Council and approved by Crown Investments Corporation of Saskatchewan, KPMG have been appointed external auditors. Their responsibility is to report to the Members of the Legislative Assembly regarding the fairness of presentation of the Corporation’s financial position and results of operations as shown in the consolidated financial statements. In carrying out their audit, the external auditors also make use of the work of the actuary and her report on the policy liabilities. The Auditors’ Report outlines the scope of their examination and their opinion. Andrew R. Cartmell President and Chief Executive Officer Jeff Stepan Chief Financial Officer February 24, 2011 56 | 2010 MANAGEMENT’S DISCUSSION AND ANALYSIS RESPONSIBILITY FOR FINANCIAL STATEMENTS 2010 | 57
ANNUal STATEMenT of management responsibility ACTUary’S report I, Andrew Cartmell, President and Chief Executive Officer, and I, Jeff Stepan, Chief Financial Officer, certify the following: To the Board of Directors of Saskatchewan Government Insurance That we have reviewed the consolidated financial statements included herein. Based on our knowledge, having exercised reasonable diligence, the consolidated financial statements fairly present, in all material respects, the financial condition, results of operations and cash flows, as of December 31, 2010. That based on our knowledge, having exercised reasonable diligence, the consolidated financial statements do not contain any untrue statements of material fact, or omit to state a material fact that is either required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made. That SGI CANADA (the Corporation) is responsible for establishing and maintaining effective internal control over financial reporting, which includes safeguarding of assets and compliance with applicable legislative authorities; and, the Corporation has designed internal controls over financial reporting that are appropriate to its circumstances. That the Corporation conducted its assessment of the effectiveness of its internal controls over financial reporting and, based on the results of this assessment, it can provide reasonable assurance that internal controls over financial reporting as of December 31, 2010, were operating effectively and no material weaknesses were found in the design or operation of the internal controls over financial reporting. I have valued the policy liabilities of SGI CANADA for its consolidated statement of financial position at December 31, 2010, and their change in the consolidated statement of operations for the year then ended in accordance with accepted actuarial practice, including selection of appropriate assumptions and methods, except as described below. I am satisified that the data utilized for the valuation of these liablities are reliable and sufficient. I verified the consistency of the valuation data with the company financial records. In accepted actuarial practice, the valuation of policy liabilities reflects the time value of money. Management required that the valuation of some policy liabilities not reflect the time value of money, which is permissible under Canadian generally accepted accounting principles for financial reporting purposes. My valuation complies with that practice. In my opinion, except as noted in the previous paragraph, the amount of policy liabilities makes appropriate provision for all policyholder obligations, and the consolidated financial statements fairly present the results of the valuation. Andrew R. Cartmell President and Chief Executive Officer February 24, 2011 Jeff Stepan Chief Financial Officer Cara Low Assistant Vice President, Corporate Actuary Saskatchewan Government Insurance Fellow, Canadian Institute of Actuaries February 24, 2011 58 | 2010 ANNUAL STATEMENT OF MANAGEMENT RESPONSIBILITY ACTUARY’S REPORT 2010 | 59
Page 1 and 2: SGI CANADAANNUAL REPORT
Page 3 and 4: LeTTer of transmittal Regina, Saska
Page 5 and 6: President’s message In the insura
Page 7 and 8: We’re here for brokers SGI CANADA
Page 9 and 10: We’re here to be good corporate c
Page 11 and 12: Five-year review ManaGEMenT’S dis
Page 13 and 14: Recent disasters around the world h
Page 15 and 16: The following table summarizes the
Page 17 and 18: 2010 2009 Source: SGI CANADA and MS
Page 19 and 20: All jurisdictions were profitable i
Page 21 and 22: Due to the strength of the capital
Page 23 and 24: The asset mix strategy is formally
Page 25 and 26: Impact of New Accounting Standards
Page 27 and 28: Off-Balance Sheet Arrangements SGI
Page 29: Distribution channel - broker partn
Page 33 and 34: Consolidated sTatement of operation
Page 35 and 36: Notes to the consolidated financial
Page 37 and 38: Property, plant and equipment Prope
Page 39 and 40: As at December 31, 2010, the cost o
Page 41 and 42: Gross Type of unpaid claims The pro
Page 43 and 44: 13. Financial Risk Management The n
Page 45 and 46: Carrying amount The Corporation’s
Page 47 and 48: The asset allocation of the defined
Page 49 and 50: 19. Facility Association Participat
Page 51 and 52: National Policy 58-201 Corporate Go
Page 53 and 54: National Policy 58-201 Corporate Go
Page 55 and 56: oard of directors Vice- presidents
Page 57: SGI CANADA head office 2260 - 11th

Full report - SGI Canada

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?