MPI profits increase in 2009, based on rebound in investment markets

Manitoba Public Insurance (MPI) has a reported net income of $32.1 million for the nine months ended Nov. 30, 2009, compared to a net income of $1.8 million for the same period of 2008.
The improvement was achieved in part by improved investment income of $50.6 million, according to MPI.
“After three quarters of the year, the corporation is in a strong financial position thanks primarily to a rebound in the investment markets,” MPI vice president of finance and chief financial officer Donald Palmer said in a release.
Claims costs for the first nine months of 2009 increased by 5.3% (or $30.6 million) compared to the same period in 2008.
Physical damage claims incurred increased by 5.6% (or $15.9 million).
About 11,000 claims were the result of a severe hailstorm that struck southern Manitoba on August. The claims had an estimated value of $35 million.
MPI reported that it holds reinsurance coverage against this loss, limiting its exposure to $13.3 million.
Bodily injury claims incurred rose by $10.2 million because of inflationary increases.