ICBC income five-times higher in 2003

B.C.’s public insurer is reporting significant growth for 2003, with net income exploding by five-times to $225 million from $45 million in 2002.
The Insurance Corp. of B.C.’s (ICBC) earned premiums grew to $2.86 billion in 2003, up from $2.63 billion the year prior, partly due to increased rates and also to a 1.6% increase in number of basic policies sold during the year.
While there were fewer claims reported during the year, claims costs were up 0.7% to $2.21 billion from $2.19 billion in 2002. ICBC reports that this is due to growth in the average cost of claims, specifically those involving injury.
Overall, the insurer posted an underwriting loss of $17 million, down significantly from the underwriting loss of $168 million posted in 2002. Investment income remained stable at $330 million, versus $327 million the year previous. The company was also not faced with some one-time costs, such as restructuring costs, faced in 2002.
“Our success in controlling operating costs helped to produce these positive results for our policyholders,” says Nick Geer, ICBC’ president and CEO. “However, ICBC still needs to build its retained earnings over the coming years as we move to a level playing field with our competitors.”
He refers to changes in B.C.’s insurance system intended to increase the ability of private insurers to compete for “optional” covers, with ICBC maintaining its monopoly on basic coverage.