Manitoba Public Insurance 2003 Annual Report

Notes to Financial Statements
February 29, 2004 and February 28, 2003

13.

Net Income (Loss)

The lines of business reported net income (loss) as follows:

(IN THOUSANDS OF DOLLARS)	2004	2003

Basic insurance	$ 3,358	$ (30,135)

Extension insurance	8,001	3,292
Special risk extension	25,140	4,049
Discontinued operations	764	189

	33,905	7,530

Net income (loss)	$37,263	$ (22,605)

14.

Transfer of Retained Earnings

Annually on March 1, the Corporation will transfer to the Basic Insurance Rate Stabilization Reserve, retained earnings in excess of the approved target levels from the Special Risk Extension and Extension lines of business. The approved target levels to February 28, 2005, established by the Board of Directors, are:

Transfer Start Date
Line of Business

Target Level

March 1, 2002
Special Risk Extension

$ 33.0 million

March 1, 2003
Extension

$ 39.0 million

At March 1, 2004 the transfer from Special Risk Extension will approximate $25.1 million (2003–$4.0 million). The transfer from the Extension line of business will approximate $4.3 million (2003–$ nil).

15.

Fair Value Disclosure

The fair value of financial assets and liabilities, other than cash and investments (note 4) and provision for unpaid claims (note 7) approximates their carrying values due to the immediate or short-term maturity of these financial instruments.