MPI reports 2007 nine-month profit of Cdn$80.4 million

Manitoba Public Insurance (MPI) has reported a profit of Cdn$80.4 million for the nine months ending Nov. 30, 2007, marking an increase over the Cdn$59.1 million reported during the same period in 2006.

MPI later this spring intends to return Cdn$63 million to policyholders in the form of a one-time rebate equalling 10% of the Basic Autopac premiums they paid for the previous insurance year.

“Manitobans continue to purchase newer vehicles, which is ultimately reflected in our bottom line” despite rising claims costs, said Don Palmer, vice-president of finance and CFO.

The claims costs for the nine months ended Nov. 30, 2007 increased by Cdn$26 million (to Cdn$572.6 million) over the same period in 2006, Palmer explained. He pointed to the Dauphin-area hailstorm in August, which resulted in roughly 14,000 claims at an estimated value of Cdn$50 million, as well as the fact that physical damage claims incurred increased by Cdn$15.5 million.

“Manitoba Public Insurance holds reinsurance coverage, which will limit our costs from this incident to Cdn$10 million,”Palmer said of the hailstorm.

Bodily injury claims costs rose by Cdn$5.3 million over the same nine months of 2006 to Cdn$186.8 million.