July 19, 2004 by Canadian Underwriter
First quarter income reported by Manitoba Public Insurance (MPI) the province’s government auto insurer dropped significantly but is in line with historic norms.
Net income for the first quarter ending May 31, 2004 was just $8.7 million, down from $29.3 million a year earlier. However, “these numbers [for first quarter 2004] are in line with typical first quarter results”, explains Barry Galenzoski, CFO for MPI. “Last year’s first quarter was unusually positive because of very strong investment income and low claims costs.”
Claims costs were up for the most recent quarter, to $25.3 million, a 19% rise over 2003’s first quarter. This was largely the result of an increase in injury and physical damage claims. As well, “this year we’re seeing the effect of late winter weather on claims and a slower rate of growth in investment markets”, explains Galenzoski.
Investment income also dropped in the first quarter of this year, down to $17.2 million, a drop of $4.9 million from a year ago.