Manitoba Public Insurance reported favourable financial results heading into the final quarter of the fiscal year, which traditionally sees the greatest number of claims due to unpredictable winter weather.
Buoyed by strong investment returns and continued expansion and upgrading of Manitoba’s vehicle fleet, the public auto insurer reported net income of $91.4 million for the nine months ended November 30, 2010, compared to net income of $24.9 million for the same period last year.
Don Palmer, Vice president of Finance and Chief Financial Officer explained that physical damage claims incurred increased by $23.9 million thanks in part to a severe hailstorm which swept through the province, including Winnipeg and surrounding area. That August storm resulted in more than 4,000 claims with an estimated value of $13.5 million. Additionally, several other hailstorms resulted in an increase in claims incurred of $8.9 million.
On the positive side, claims costs for the nine months ended November 30, 2010 decreased by $40 million to $570 million compared to the same period last year.
“All of our customers benefit when our balance sheet is positive,” said Palmer. “We can all contribute to that strength by driving responsibly and avoiding collisions during the final quarter, which is usually a difficult period of time for driving.”
New Insurance Year
In just over six weeks, when a new insurance year starts, Palmer said 572,000 Manitobans will pay less for their Autopac in 2011. It will be the 12th year in the last 13 that Manitoba Public Insurance has held the line or reduced Autopac rates without lowering customer service or reducing coverage.
Effective March 1, 2011, long-time safe drivers, who are placed at +15 on the Driver Safety Rating (DSR), will see their Autopac discount increase to 33 per cent, up eight per cent from the previous maximum discount of 25. DSR levels +10 to +14 will also be fully implemented, providing discounts of 26 to 30 per cent, respectively.
Later this spring, Manitoba Public Insurance policy holders will share in their fifth rebate in 11 years as the corporation returns $71 million to Manitobans in the form of a one-time rebate equalling 10 per cent of the Basic Autopac premiums they paid for the previous insurance year. The average customer will receive a cheque worth about $89. Including the current rebate, more than $330 million will have been returned to Manitoba vehicle owners.
