Canadian Underwriter

MPI posts $40.8 million income in first-half 2004

October 5, 2004   by Canadian Underwriter

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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.