Manitoba Public Insurance has completed its first six months of fiscal 2011/12 in a stable financial position.
For the six months ended August 31, 2011, Manitoba’s public auto insurer reported a net income of $34.2 million – a decrease from $69.3 million 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, vice president of finance and chief financial officer. Injury claims costs are within expectations.
In addition, physical damage claims has risen by $13.8 million – a rise attributed to several early season hail storms. “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 Manitoba Public Insurance submitted to the Public Utilities Board a rate application which called for an overall Basic Autopac rate decrease of 6.8 percent. If approved by the PUB, this will be the 13th year out of the last 14 in which Manitoba Public Insurance has held the line, or decreased, auto insurance premiums. The new Basic Autopac rates take effect March 1, 2012.
