MPI reports profits of $34.9 million in 2007-08

Manitoba Public Insurance (MPI) reported profits totalling Cdn$34.9 million in all three lines of business for the 2007-08 fiscal year.
Total revenues were Cdn$869.7 million in 2007-08, up from Cdn$837.7 million the previous year.
Net investment income grew to Cdn$125.5 million in 2007-08, up from Cdn$120.4 million the year before, MPI reported in a release.
“Total claims costs decreased marginally, by Cdn$3 million or less than 1% from the previous year,” Don Palmer, vice president of finance and CFO, said in a release. “The Immobilizer Incentive Program and Winnipeg Auto Theft Suppression Strategy are having a significant positive effect, as theft claims and attempted theft claims costs declined by Cdn$11.8 million.”
Severe weather-related claims including a catastrophic hailstorm that struck Dauphin and other Manitoba communities in August 2007 offset savings, Palmer said.
Roughly 14,000 claims resulted from the hailstorm, costing approximately Cdn$50 million. Reinsurance coverage held against this loss will limit MPI’s exposure to Cdn $10 million, the public insurer added.
MPI in 2007 met or exceeded corporate-wide customer service standards 94% of the time, according to the release.
Last year, Manitobans filed an average of 1,121 claims every working day. This represents about Cdn$2.3 million in claims costs every working day, the release noted.