Manitoba Public Insurance (MPI) this week reported that claims costs and investment income remain within expectations, citing net income of $15.1 million for the first nine months of the year, ended Nov. 30, 2012, compared with $36.9 million over the same period in 2011.
The stable financial results were released as MPI enters the final quarter of the fiscal year, the time when winter driving weather conditions traditionally result in a greater number of claims, notes a statement from the public insurer.
“The corporation remains committed to achieving long-term rate stability,” Heather Reichert, says MPI’s vice president of finance and chief financial officer. “All our customers benefit when our balance sheet is positive,” Reichert points out. “Motorists can contribute to this by driving responsibly and avoiding collisions during the final quarter which is usually a difficult period of time for driving,” she adds.
The $12.6 million increase in earned revenues for the first nine months of 2012, compared with the same period in 2011, is primarily attributed to motor vehicle earned revenues, MPI reports. These increased by $4.4 million as a result of more vehicles being insured, while revenue from premiums rose by $3.8 million.
Comparing the nine-month periods ending in 2011 and 2012, MPI reports that claims decreased by $9.1 million last year. A $28.1 million decrease in bodily injury claims incurred was offset by a $16.9 million increase in physical damage claims incurred.
The Public Utilities Board recently approved MPI’s rate application for the 2013-14 insurance year, which once again holds the line on rates, Reichert says.