Manitoba Public Insurance financial performance is stable

Manitoba Public Insurance has reported stable financial results as it enters the final quarter of fiscal 2006, which, according to records can include the highest incidence of claims, according to a press release.
Manitoba Public Insurance reported net income from operations of $59.1 for the nine months ended on November 30, 2006. This is a decrease from $61.6 million during last year’s same nine month period, despite a rise in claims costs and a decrease in investment returns.
According to the MPI press release, Barry Galenzoski, vice-president of corporate finance and CFO, said claims cost for the nine months ended November 30, 2006 increased by 8.2% to $546.6 million. Physical damage claims incurred increased by $16.3 million to $290.6 million. This is due mainly to a 3.9% rise in the number of claims reported.
For the same period, benefits associated with injury claims increased 11.5%.
“It is important for every Manitoban to understand that they determine what we will pay for auto insurance in the future,” Galenzoski said. “Because we provide insurance at cost, the amount of premium we collect is directly related to the number of crashes that take place. By taking more care on the road, every Manitoban driver can make a difference.”
Investment income for the nine months was $92.9 million, a decrease of $45.1 million compared to the same period last year. Galenzowski explained that this was primarily a result of lower gains on the sale bonds and equities. This decrease was offset by the continued expansion and upgrading of Manitoba’s vehicle fleet, which increased earned revenues by $25.7 million or 4.9%.