MPI income up in Q-2

Manitoba’s public auto insurer is reporting rising net income for the second quarter ending August 31, 2002. Net income was up to $26.1 million from $8.5 million during the same period last year for Manitoba Public Insurance (MPI).
Revenues are up and claims costs down, resulting in the improved results. However, claims costs were only down slightly, as less than 1% difference between the $271.1 million reported in Q-2 2002 and $273.7 last year during the same quarter. MPI notes that injury claims were up 2.8%, while physical damage costs were down 4.3%.
“We’re confident we’re on target for a stable and successful year,” says Barry Galenzoski, MPI’s vice president of corporate finance and CFO. “Our increasing revenues show Manitobans are continuing to upgrade their vehicles, while actual claims costs are in line with our projections.”
Income in the first and second quarters is used largely to offset rising claims costs in the last half of the year due to winter driving conditions.
“As always, Manitoba motorists play a strong role through their driving behaviour in ensuring we continue to see the positive results reported in this period,” Galenzoski says. “It’s pretty simple fewer claims means fewer pay outs and lower auto insurance rates.”