WINNIPEG - Manitoba Public Insurance earned more money in the first six months of this year compared to the previous year.
MPI reported a net income of $72.8 million for the first six months of its fiscal year ending August 31, 2018. That is an increase of $30.5 million over the same time period last year.
“Operational results for the first two quarters of the Corporation’s 2018/19 fiscal year continue to be favourable, despite a major hail event that occurred in mid-June, and other weather-related incidents that resulted in an overall increase in physical damage claims costs incurred,” said Mark Giesbrecht, vice-president, Finance and Chief Financial Officer, Manitoba Public Insurance.
Total earned revenues for the first six months rose by $44.8 million from the same period last year, driven mainly by higher motor vehicle premium revenue resulting from an increase in the number of motor vehicles insured, the value of these vehicles, and an overall 2.6 per cent increase in Basic insurance rates ordered by the Public Utilities Board for the 2018/19 insurance year.
“The overall financial picture was also affected by an increase of $11.8 million in physical damage claims cost, which was partially offset by a decrease of $5.6 million in bodily injury claims costs compared to the first six months of the 2017/18 fiscal year,” said Giesbrecht
In June, the Corporation applied to the Public Utilities Board for an overall increase of 2.2 per cent in Basic insurance premiums for the 2019/20 insurance year, with the majority of that increase (2.1 per cent) requested to maintain an adequate rate stabilization reserve to absorb future variations in revenues, claims costs, and investment revenues.