April 16, 2010 by Canadian Underwriter
ICBC reported a net income of $563 million in 2009, up from $497 million for 2008.
Underwriting income dropped from $321 million in 2008 to $135 million in 2009.
Claims and related costs increased to $2.97 billion in 2009 from $2.82 billion in 2008. Claims costs were still lower than expected due to customers making smart driving decisions, improved claims-handling procedures, good weather, fewer claims and investments in road safety and auto crime prevention, according to the ICBC.
The corporation saw a moderate growth in premiums written – $3.67 billion in 2009, compared to $3.64 billion in 2008 – and the ICBC reported seeing the economy having an effect on new insurance policies.
The insurer’s minimum capital test improved from 208.6% in 2008 to 239.6% last year.
“ICBC’s capital levels are strong, which is vital for any insurance company, and will remain so going forward,” the corporation reports.
“Government’s recent direction on the way surplus optional capital is managed at ICBC ensures enough money remains in the company to meet its regulatory requirements, protect customers and to reinvest in the business.”