Saskatchewan Mutual Insurance Company providing insurance for your home, farm, auto and business.

Security and Service
Since 1908

REPORTS
Board
Management
Auditor
Actuary

FINANCIALS
Balance Sheet
Operations
Surplus
Cash Flow
Notes

1999 SASKATCHEWAN MUTUAL INSURANCE COMPANY ANNUAL REPORT

BALANCE SHEET
(thousands of dollars)

December 31, 1999, with comparative figures for 1998

	1999		1998
Assets

Cash	$ 432		$ 753
Amounts due from brokers	935		911
Premiums due from policyholders	1,315		1,281
Accrued investment income	273		301
Sundry accounts receivable	941		649
Due from other insurance companies	462		63
Reinsurers’ share of provisions for:
Unpaid claims and adjusting expenses (note 4)	1,480		2,203
Unearned premiums	8		441
Investments (note 3)	22,878		20,772
Deferred policy acquisition costs	2,053		2,013
Capital assets at cost less accumulated amortization of $1,559 (1998 - $1,431)	737		645

	$ 31,514		$ 30,032

Liabilities and Surplus

Due to other insurance companies	$ 85		$ 20
Premium taxes payable	562		545
Accounts payable	176		150
Income taxes payable	17		-
Unpaid claims and adjusting expenses (note 4)	7,560		8,089
Unearned premiums	8,889		8,695
Unearned reinsurance commissions	-		130
Deferred income taxes payable	525		-
	17,814		17,629
Surplus:
Reserves required by the Office of the Superintendent of Financial Institutions Canada (note 6)		1,385	953
Earned surplus		12,315	11,450
	13,700		12,403

	$ 31,514		$ 30,032

See accompanying notes to financial statements.

On behalf of the Board:

Director

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STATEMENT OF OPERATIONS
(thousands of dollars)

Year ended December 31, 1999, with comparative figures for 1998

	1999	1998
Direct premiums written	$ 17,307	$ 16,862
Deduct reinsurance ceded	1,193	1,625
Net premiums written	16,114	15,237

Change in unearned premiums	(627)		(388)

Net premiums earned	15,487	14,849

Claims and adjusting expenses (note 5)	8,370	7,248
Commissions	3,078	2,787
Taxes	650	624
General expenses	2,849	2,596
Total claims and expenses	14,947	13,255

Net underwriting income	540	1,594

Investment operations:
Interest	1,231	1,190
Dividends	78	17
Gain on sale of investments	17	38
Rental income	20	66
	1,346	1,311

Expenses	38	39
Investment income	1,308	1,272

Earnings before income taxes	1,848	2,866

Income taxes (note 7)	551	-

Net earnings	$ 1,297	$ 2,866

See accompanying notes to financial statements.

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STATEMENT OF EARNED SURPLUS
(thousands of dollars)

Year ended December 31, 1999, with comparative figures for 1998

	1999	1998

Balance, beginning of year	$ 11,450	$ 8,996

Net earnings	1,297	2,866
	12,747	11,862

Transfers to reserves required by the Office of the Superintendent of Financial Institutions Canada (note 6)	(432)		(412)

Balance, end of year	$ 12,315	$ 11,450

See accompanying notes to financial statements.

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STATEMENT OF CASH FLOWS
(thousands of dollars)

Year ended December 31, 1999, with comparative figures for 1998

1999

1998

Cash provided by (used in):

Operations:

Net earnings

$ 1,297

$ 2,866

Changes in non-cash balances:

Unearned premiums

194

408

Unpaid claims and adjusting expenses

(529)

(968)

Reinsurers’ share of unearned premiums

433

(20)

Reinsurers’ share of unpaid claims and

adjusting expenses

723

570

Deferred policy acquisition costs

(40)

(86)

Unearned reinsurance commissions

(130)

4

Receivables

(721)

296

Payables

125

(125)

Deferred income taxes payable

525

-

Amortization of capital assets

132

104

Gain on sale of investments

(17)

(38)

1,992

3,011

Investing:

Purchase of bonds

(4,890)

(5,890)

Purchase of common shares

(645)

(560)

Proceeds from sale of bonds

3,608

3,465

Proceeds from sale of common shares

94

329

Purchase of capital assets

(227)

(279)

Proceeds from sale of other assets

3

8

(2,057)

(2,927)

Increase (decrease) in cash and cash equivalents

(65)

84

Cash and cash equivalents, beginning of year

1,207

1,123

Cash and cash equivalents, end of year

$ 1,142

$ 1,207

Cash and cash equivalents, end of year:

Cash

$ 432

$ 753

Short-term investments

710

454

$ 1,142

$ 1,207

See accompanying notes to financial statements.

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