Manitoba Public Insurance has completed its first six months of fiscal 2012 in a stable financial position, despite a decrease in investment income.
For the six months ended August 31, 2012, Manitoba’s public auto insurer reported a net income of $21.2 million – a decrease from $34.2 million earned during the same period in 2011.
“Investment income decreased $27.5 million primarily due to unrealized losses relating to investments in bonds,” said Heather Reichert, Vice President Finance and Chief Financial Officer, Manitoba Public Insurance.
“Our six-month results remain satisfactory due to stable claim costs. In our General Rate Application to the Public Utilities Board earlier this year, we applied for no overall rate increase – evidence that Manitobans continue to receive the most comprehensive coverage at affordable rates.”
Total earned revenues increased $10.8 million from the previous year. Motor vehicle premiums earned revenue increased $6.6 million (1.5 per cent) because of the continuing increase in the number and value of vehicles insured.
“Total claims costs were stable compared to last year with an increase of only 0.3 per cent ($1.3 million),” said Reichert.
Reichert reminds Autopac customers that the financial performance of the province’s public auto insurer remains closely tied to claims costs. Traditionally, Manitoba Public Insurance generates profits in the first two quarters of the year that are offset in winter months when claims volume increases.
“These results provide us with some cautious optimism as we head into winter,” Reichert said. “Manitobans can directly influence these results, and how much we all pay for auto insurance, by driving responsibly.”
