Auto claims costs up, MPI says

Solid investment income helped Manitoba Public Insurance (MPI) offset a significant rise in claims costs for the first quarter of 2006, MPI has reported.
For the three months ended May 31, 2006, MPI’s claims costs were up CD$17.1 million, or 11.5%, over the same period a year earlier. The corporation’s investment income grew almost as quickly, increasing by CD$14.9 million compared to 2005 Q1.
As a result, the company reported net income from operations of CD$56.3 million an increase of 6.4% over the CD$52.9 million earned during the same period in 2005.
“We’re pleased with the first-quarter results,” Barry Galenzoski, MPI’s vice president of corporate finance and CEO, said in a press release. “But we can’t ignore the rise in claims costs with respect to bodily injury and physical damage.
“Every Manitoban can directly influence these results and how much they pay for auto insurance through their driving behavior,” Galenzoski said. “It’s not very complicated: fewer claims mean fewer payouts and ultimately lower auto insurance rates.”
Galenzoski noted physical damage claims in 2006 Q1 increased by CD$6.2 million, and the number of claims reported increased 8.6% to 63,613. The cost of bodily injury claims also increased by 12.3% over the quarter to $55.2 million.