ICBC posts Q1 net income of $5 million

The Insurance Corp. of B.C. (ICBC), the province’s public auto insurer, is posting net income of $5 million for the first three months of 2003, compared to a loss of $30 million in the first quarter of 2002.
Premiums were up to $674 million versus $614 million in the same period a year prior, an increase of 9.8%. This comes as a result of rate increases announced in November of 2001 taking full effect, as well as a 1% increase in number of policies sold.
Claims costs for the quarter remained steady at $621 million, although the number of claims actually dropped compared to first quarter 2002 due to better weather conditions and higher minimum deductibles now offered. However, auto theft continues to be an issue, with a 10% increase in vehicles reported stolen during the quarter, to over 5,900.
Investment returns were down, with income of $75 million and a rate of return of 5.2%, compared with 6.8% during the same period in 2002.
But the company was able to decrease its expenses, bringing in an expense ratio of 15% (plus 3% for non-insurance related expenses) for the quarter.
“ICBC is now operating on a more sustainable basis, with decreased overhead costs and pricing that better reflects the risk represented by individual customers,” says Nick Geer, ICBC’s president, CEO and chair of the board, “but we continue to be concerned about the increasing cost of crashes in terms of injuries and vehicle damage.”