Manitoba Public Insurance reported a net income of $16.5 million for the first six months of its fiscal year ending August 31, 2015. This includes net income to the Basic insurance line of business of $5.0 million in the first six months of the 2015/16 fiscal year.
Total earned revenues for the first six months rose by $32.8 million from the same period last year, driven mainly by increases in motor vehicle premium revenue due to an increase in the volume of motor vehicles insured and a 3.4% overall premium increase approved by the Public Utilities Board for the current year.
The overall net income was down $21.1 million from the same time period last year.
“While the first six months have generated income for the Corporation, the claims experience in the winter months will dictate our overall results”, said Heather Reichert, vice-president, Finance and Chief Financial Officer, Manitoba Public Insurance. “Our commitment to fiscal responsibility and rate stability for all Manitobans remains our top focus.”
At the end of the second quarter, Basic insurance total equity is $181.6 million, whereas, at February 2015 a minimum total equity level of $213.0 million was required to achieve satisfactory financial condition.
The current year’s small rate increase approved by the Public Utilities Board has been instrumental in easing the deficiency in premiums that was being experienced. This, combined with a return to normal growth in claims forecasts and the Corporation’s ongoing efforts to control operating costs, has resulted in a request for no overall rate increase for the 2016/17 insurance year. If approved, this would be the 12th time in 15 years that Manitoba’s public auto insurer has held the line on rate increases.
“The cumulative rate decrease over this time has been 9.7 per cent,” said Reichert. “Manitoba Public Insurance continues to have one of the lowest rates of year-over-year premium increases of all Canadian provinces. At the same time, the Corporation continues to exceed its mandate for the Basic insurance plan of returning at least 85 cents of every dollar collected in Basic premiums to Manitobans in the form of claims benefits. For 2014/15, that return was $1.09 on every premium dollar collected.”
