ICBC net income jumps to $81.6 million in first quarter

B.C.’s public insurer is reporting net income of $81.6 million for the first quarter ending March 31, 2004, a massive leap from the $4.7 million reported for the same period a year ago.
The Insurance Corp. of B.C. (ICBC) says premiums were up to $726 million for the most recent quarter, from $674 million a year ago, as a result of rate increases implemented since November 2002, as well as an increase in both basic and optional policy sales. Despite legislation to open up the optional market to competition, ICBC reports no loss of market share in the first quarter.
Claims were up over the comparative period, to $636 million from $621 million. An increase in high-value injury claims continues to trouble the public insurer.
“We’re holding the line on operating costs,” says ICBC president and CEO Nick Geer. Administrative expenses have held at $28 million, while the loss from non-insurance operations (licence and fine services) has been a steady $21 million in the first quarters of 2002 and 2003.
Invest income boosted earnings, coming in at $120 million in the first quarter of this year versus $75 million a year ago, largely on the sale of equities and bonds.
ICBC has not increased rates for 2004, but did pass on a 0.4% increase in the premium tax to its customers.
Geer says the profits made in the current environment will help the company to absorb potential losses without having to dramatically increase rates.