Manitoba Public Insurance reported a net income of $14.2 million for the three months ending May 31, 2014.
While the corporation faced significant increased frequency and severity of claims this past winter and continued into March and April, resulting in an increase of $9.6 million – or 8.1 per cent – in physical damage claims. This increase was offset by a drop in bodily injury claims from last year of $35.7 million.
“Bodily injury claims have appeared to return to normal levels from last year’s abnormally high levels”, said Heather Reichert, vice-president, Finance and Chief Financial Officer. As a result, total claims costs for the first quarter of the fiscal year decreased $26.6 million compared to last year.
Despite these first quarter results, the corporation remains cautious given the impact of claims severity as a result of the harsh driving conditions most Manitobans experienced over the past winter, the ongoing volatility of interest rates and the nearly depleted Rate Stabilization Reserve (RSR).
Reichert says fiscal responsibility continues to be a high priority with Manitoba’s public auto insurer. “We are committed to keeping rates stable for all Manitobans over the long term,” she said.
Reichert adds motorists need to play their part. “Manitobans need to stay vigilant by driving to the conditions of the road and avoid collisions during the remaining three quarters of the fiscal year.”
