Manitoba Public Insurance reported favourable financial results as it enters the final quarter of the fiscal year, the time when winter driving weather conditions traditionally result in a greater number of claims.
Manitoba Public Insurance reported net income of $36.9 million for the nine months ended November 30, 2011 compared to net income of $89.4 million for the same period last year. This includes net income of $11.3 million (2010 – net income of $72.5 million) from the Basic insurance line of business.
“After three quarters of the year our revenue, claims costs and investment income are within expectations,” said Marilyn McLaren, President and CEO, Manitoba Public Insurance.
Manitobans continue to benefit from the public automobile insurance system, said McLaren. On December 2, 2011, the Public Utilities Board released its ruling on the Corporation’s rate application for the 2012/13 fiscal year. Effective March 1, 2012, overall average Basic insurance rates will decrease by 8.0 per cent from the previous year. The ruling means that Manitoba Public Insurance has held the line or reduced auto insurance rates 13 of the last 14 years, without lowering service or reducing coverage.
“Mild weather has not resulted in a decrease in claims frequency,” said McLaren. “Motorists must continue to drive responsibly and avoiding collisions during the final quarter which is usually a difficult period of time for driving.”
