MPI sees 2011 H1 income halved

Manitoba Public Insurance (MPI) has reported a net income of $34.2 million for the six months ended Aug. 31, 2011, a decrease from the $69.3 million it earned during the same period in 2010.
“Compared to last year, bodily injury claims incurred, excluding the prior-year reduction in the provision of unpaid claims, decreased by $4.7 million,” said Donald Palmer, MPI’s vice president of finance and chief financial officer. “Injury claims costs are within expectations.”
In addition, physical damage claims increased by $13.8 million – an increase attributed to several early season hailstorms. “Weather patterns have demonstrated that hail will continue to be a common occurrence in Manitoba, “said Palmer.
“However, the hail year came unusually early and was very severe in some parts of the province. Hail claims costs increased by $11.3 million due to the severity of storms.”
Earlier this year, MPI submitted to the Public Utilities Board a rate application that called for an overall Basic Autopac rate decrease of 6.8%.
If the PUB approves the application, this would be the 13th year out of the last 14 in which MPI has held the line on or decreased auto insurance premiums.
The new basic Autopac rates take effect Mar. 1, 2012.