MPI reports increase in physical damage claims during first half of 2009

Manitoba Public Insurance (MPI) has reported a net income of Cdn$25.5 million for the first half of fiscal 2009, marking a decrease from the Cdn$40.3 million earned during the same period in 2008.
Claims costs for the six-month period ended Aug. 31, 2009 were fairly stable, increasing by Cdn$22.6 million or 5.9% compared with the first half of fiscal 2008.
Injury claims costs increased 4.3% during the period.
Physical damage costs rose 8% between 2008 H1 and 2009 H1. A severe hailstorm that struck southern Manitoba on Aug. 13 and 14 proved to be a significant factor in the increase, MPI said.
This particular storm resulted in more than 9,000 hail claims being opened with MPI.
Total damage caused by the hail is estimated to be Cdn$35 million, of which the net cost to the corporation will be Cdn$15 million. MPI’s reinsurer will pay out the remaining Cdn$20 million.
Manitoba’s immobilizer program continued to generate positive results, reflected in theft and attempted theft claims decreasing 22% (representing Cdn$3 million in claims costs), compared to 2008 H1.
Invested revenue showed a modest increase of Cdn$3.2 million from the previous year. MPI attributes this to higher income generated from the bond portfolio.