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13, 2000 Good Financial Performance for MPI Higher investment income, revenue contribute to second-quarter results Second quarter results for Manitoba Public Insurance's 2000/01 fiscal year show the corporation continuing to demonstrate good financial performance. MPI's year-to-date financial statement for the six months from March 1 to August 31, 2000 shows a net operating surplus of $5.0 million. The surplus was achieved after transferring $47.4 million to the Basic Insurance Rate Stabilization Reserve (RSR). The RSR, which stands at $122.3 million, helps protect motorists from rate increases made necessary by unexpected losses from events such as increased claims costs arising from periods of severe weather. Claims costs increased by four per cent compared to the previous year mainly due to higher physical damage claims costs. Investment income for the period contributed to the surplus and was $46.6 million compared to $38.4 million for the same period in 1999. Earlier this month MPI moved to pass on the benefits of its improved financial results to consumers by amending its 2001 basic Autopac rate application to the Public Utilities Board (PUB). The new application asks the Board to approve that a one-time 10 per cent surplus dividend be applied to all policies purchased or renewed beginning March 1, 2001. If approved, the move would reduce the overall amount, on a one-time basis, Manitobans pay for auto insurance and would see premiums for more than 91 per cent of private passenger vehicles reduced. "Manitoba's robust provincial economy is enabling motorists to purchase new vehicles at a rate faster than in the past - modernizing and increasing the size of the provincial fleet by about 10,000 vehicles. This larger vehicle fleet increases MPI's premium revenue," said Barry Galenzoski, Vice-President Corporate Finance and Chief Financial Officer. Another significant contributing factor to the positive financial results is the corporation's successful investment strategy. MPI diversified its investment portfolio several years ago to include more equities. Growth in North American stock markets and gains made on the sale of some of these investments held by MPI continues to contribute to the corporation's financial performance. Contact: Brian Smiley/Carol Standil MPI Media Relations: 985-7300/toll free 1-888-554-9549
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