October 5, 2004 by Canadian Underwriter
Manitoba Public Insurance (MPI) says it is “on target” for the first six months of its fiscal year. The province’s public auto insurer posted net income of $40.8 million for the first-half ending August 31, 2004, up from $39.2 million a year earlier.
The public insurer generally begins the year building income which will offset higher claims during the winter months, explains CFO Barry Galenzoski. “Our six-month results are satisfactory. Our revenue, claims costs and investment income are within expectations which means we’re heading into the fall and winter months in a stable financial position.”
Claims costs for the first half of this year were up 3.6%, or $10.8 million, coming in at $306.0 million versus $295.2 million a year ago. Much of this growth came from physical damage claims, up 5.2%, versus injury claims, up just 1.4%. Expenses were also up in the first half of this year to $55.4 million from $51.9 million a year ago.
However, premiums also grew substantially, up 7.5% to $391.1 million in the first half of this fiscal year from $357.4 million a year prior. This offset declining investment income during the half, down to $38.7 million from $48.2 million year-on-year.
As of the end of August, 2004, the company’s “rate stabilization” reserve stands at $102.5 million, up from $65.0 million at the same point in 2003.