Manitoba Public Insurance reported net income of $72.8 million for the first six months of its fiscal year ending August 31, 2018 – an increase of $30.5 million over the same time period last year. This includes net income from the Basic insurance line of business of $39.4 million in the first six months of the 2018/19 fiscal 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. “Historically, there is an increase in claims in the winter months, which offsets the positive financial results typically posted during the first two quarters of the Corporation’s fiscal year. As such, we will continue to closely monitor revenues, claims and claims costs over the remaining two quarters.”
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.
