October 1, 2001 by Canadian Underwriter
Manitoba’s public insurer has been hard hit in the first half of 2001, with its highest claims volume in five years cutting net income by nearly $44 million. Net income for Manitoba Public Insurance (MPI) stands at $8.5 million for the half ending August 31, as compared with $52.4 million. Lower investment income was also a factor, MPI reports.
A late August hail storm that cost about $3 million in claims was partly to blame, but overall claims activity has increased as well. “Over the normally slower summer months, we experienced wintertime levels in the number of claims reported this year,” says Barry Galenzoski, vice president of corporate finance and CFO for MPI.
Claims costs for the first six months of the year went up 20% over last year, to $271 million. More than 120,000 claims were reported, again a 20% increase over last year.
About 10,000 of these claims were related to summer hail damage, and auto collision claims were up by more than 4,000 over last year. Auto theft claims are also up, with almost 6,500 claims filed in the first half of 2001.
Investment income dropped to $38 million, MPI reports.
“This report does give us pause,” admits Galenzoski, especially because the corporation traditionally receives more claims near the end of the year.