February 1, 2004 by Canadian Underwriter
For the first three quarters ending November 30, 2003, Manitoba Public Insurance (MPI) is reporting growth in net income to $38.7 million, up from $23.1 million for the same period a year earlier.
Investment income was almost double, hitting $85.4 million for the first nine months of the 2003 fiscal year, versus $45.8 million for the same period a year earlier. Written premiums were also up 6.1% to $526.7 million.
However, the provincial government auto insurer says claims growth, which was almost 12% between third quarter 2002 and 2003, continues to drag down results. Overall claims costs were $477.6 million, versus $426.7 million a year earlier. This is especially a concern heading into the fourth quarter where winter driving results in the heaviest claims period.
As well, the public insurer has seen a record number of serious injury claims in 2003, notes Barry Galenzoski, vice president of corporate finance and CFO for MPI. “Because we provide insurance at cost, the amount of premium we collect is directly related to the number of crashes that take place. Through their personal driving record, every Manitoba driver can make a difference.”