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Manitoba Public Insurance reported favourable financial
results today as it enters the final quarter of the fiscal
year, the time when winter driving weather conditions traditionally
result in the greatest number of claims.
Buoyed by strong investment returns, Manitoba Public Insurance
reported net income of $120.4 million for the nine months
ended November 30, 2005. That is an increase of $38.9 million
over net income of $81.5 million earned during the same period
in 2004.
“The corporation typically generates a surplus in
the first two quarters of the year, when claims tend to be
lower, and then sees higher costs in the fall and winter
months, when claims normally increase,” said Barry
Galenzoski, Vice-President of Corporate Finance and Chief
Financial Officer. “This year, higher equity returns
have helped build a very strong balance sheet as we head
into the final winter quarter. It also stands us in good
stead as the corporation prepares to provide customers with
a 10 per cent dividend on premiums paid last year.”
Galenzoski pointed out that claims costs
for the nine months ended November 30, 2005 increased by
$46.7 million or 10 per cent compared to last year. Physical
damage claims incurred increased by $30.9 million due mainly
to a three per cent rise in the number of claims reported.
Much of this increase was due to unusual summer rainstorms
which increased weather-related claims by $13.1 million over
the same period last year.
Independent research shows Manitoba motorists continue to
benefit from some of the lowest insurance rates in Canada
for comprehensive coverage, including personal injury protection.
Basic Autopac rates have remained stable for nearly a decade.
In the 2006-07 fiscal year, Manitoba Public Insurance will
return $58 million to Manitobans in the form of a one-time
rebate equaling 10 per cent of the Basic Autopac premium
they paid last year. This will be the second dividend to
Manitoba motorists in five years.
“We are fortunate to live in a province with public auto
insurance, where corporate financial strength translates into
direct benefits for motorists,” said Galenzoski. “Whether
through lower rates, value-added services or a direct rebate,
all customers benefit when our balance sheet is positive. All
of us can contribute to that strength by driving safely and
avoiding collisions during this final quarter of the fiscal
year.”
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Contact:
Brian Smiley
Corporate Communications
Manitoba Public Insurance
(204) 985-7300 or 1-888-554-9549 (toll-free in Manitoba) |
