MPI sees $52.5-million decrease in third quarter profits

Manitoba Public Insurance (MPI) reported its net income (after surplus distribution) dropped by $52.5 million for the first three quarters of 2011.
MPI reported a profit of $89.4 million during the first three quarters of 2010, which dropped to $36.9 million over the same period in 2011.
Basic auto insurance netted a profit of $11.3 million for the nine months ended Nov. 30, 2011. This marked a drop from the $72.5-million net income generated over for the same period in 2010.
The insurer also reported a decline in underwriting results of $64.1 million, citing increased claims costs.
Bodily injury claims incurred rose by $57.1 million. Physical damage claims incurred rose by $20.2 million.
Collision claims increased from 94,000 last year to 101,000 this year due to more severe weather in Spring 2011 than in Spring 2010. Hail claims costs rose by $4.7 million due to an increase in the number of hailstorms.
MPI also reported an increase of $22.5 million in investment income, due to an increase of realized and unrealized gains on bonds.
“After three quarters of the year, our revenue, claims costs and investment income are within expectations,” said Marilyn McLaren, MPI’s president and CEO.
“Mild weather has not resulted in a decrease in claims frequency. Motorists must continue to drive responsibly and avoid collisions during the final quarter, which is usually a difficult period of time for driving.”