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January
10, 2001 Strong third-quarter results for Manitoba Public Insurance's 2000/01 fiscal year reflect the corporation's ongoing positive financial performance. MPI's year-to-date financial statement for the nine months from March 1 to November 30, 2000 shows a net income of $67.1 million, compared with $62.5 million for the same period last year. "Our continued strong financial position is largely due to the impact of three mild winters in a row, a diversified investment strategy and an improved economy," said Barry Galenzoski, Vice-President Corporate Finance and Chief Financial Officer. "Manitobans are purchasing newer vehicles at a faster rate than in the past increasing MPI's premium revenue." While results have been positive for the past nine months, historically MPI's the fourth quarter, from December 1 to the end of February, shows higher claims costs because of poor driving conditions in the winter months. A record-breaking December 2000 indicates a return to this trend. Last month 21,855 claims were registered with the corporation, compared with 17,990 claims in December of 1999. Claims cost for the period rose by 6.1 per cent over 1999/2000, due mainly to higher physical damage costs. Investment income for the period was $69.8 million up from $57.9 million for the same period last year. This important source of revenue reduces insurance rates by more than $84 for all Manitoba motorists. On December 4, 2000, Manitoba's Public Utilities Board approved MPI's Basic Autopac rate application for 2001/2002. This included a one-time 16.6 discount on all Autopac policies purchased or renewed beginning March 1, 2001. This one-time discount will reduce the premiums collected by MPI by $75.4 million. Contact:
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