Manitoba Public Insurance reported today that it finished its second quarter in a strong financial position, with claims costs slightly down and revenues higher than last year.

For the six months ended August 31, 2002, the company reported a net income of $26.1 million – up from the $8.5 million earned during the same period in 2001. Traditionally, Manitoba Public Insurance generates profits in the first two quarters of the year that are offset in winter months when claims volume increases.

“We’re confident we’re on target for a stable and successful year,” said Barry Galenzoski, Vice President of Corporate Finance and Chief Financial Officer. “Our increasing revenues show Manitobans are continuing to upgrade their vehicles, while actual claims costs are in line with our projections.”

Overall, claims costs for the period decreased marginally – by less than one per cent – to $271.1 million from $273.7 million for the same period last year. A 4.3 per cent decline in physical damage costs offset a 2.8 per cent increase in injury claims.

Galenzoski warned that the financial performance of the province’s public auto insurer remains closely tied to claims costs. Through their individual driving record, every Manitoban can directly influence how much they pay for auto insurance, he said.

“As always, Manitoba motorists play a strong role through their driving behaviour in ensuring we continue to see the positive results reported in this period,” he said. “It’s pretty simple – fewer claims means fewer pay outs and lower auto insurance rates.”

Manitobans continue to benefit from comprehensive coverage, including personal injury protection, paying rates that independent research shows are consistently among the lowest in the country.

Contact: Brian Smiley/Ted Wakefield
Media Relations
985-7300/1-888-554-9549 (toll free in Manitoba)