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Manitoba Public Insurance
reported today it has completed
the first six months of fiscal
2003 in a strong financial position,
as investment income and premium
revenue increased over last year.
For
the six months ended August 31,
2003, the company reported
net income of $39.2 million – up
from the $26.1 million earned during
the same period in 2002.
“The increases in our total
earned revenue and investment income
put us on target for the year,” said
Barry Galenzoski, Vice-President
of Corporate Finance and Chief
Financial Officer. “However,
this good news is undermined by
a spike in the number and cost
of serious injuries, which causes
us some concern.”
Claims costs for the period rose
8.9 per cent (to $295 million)
compared with the first six months
of 2002. This increase is mainly
attributable to increases in both
injury and physical damage claims
in the second quarter. Injury claims
costs climbed nearly 73 per cent
in that quarter, while physical
damage claims rose 3.7 per cent.
Continued
expansion and upgrading of the
province’s vehicle
fleet helped drive up total earned
revenue by 6.8 per cent to $338
million for the six-month period.
Investment income also continued
to rise, increasing to $48 million
for the period.
Manitoba
Public Insurance often generates
net income in the “good
weather” months of its fiscal
year, but this is offset in winter
months when the number of claims
reported increases.
“The upward trend in revenue
allows us to head into the first
of the so-called winter quarters
with cautious optimism,” Galenzoski
said. “As we do so, I remind
Manitobans that every one of us
can directly influence these results,
and how much we all pay for auto
insurance, through our driving
behaviour.
“Fewer
injuries and claims filed reduce
costs and in turn
help keep auto insurance premiums
in check.”
Galenzoski
said the continued rebound in
investment income is
good news for customers as this
important revenue source helps
lower every premium – by
an average of about $59 in 2002.
Independent studies show Manitobans
continue to pay among the lowest
rates in the country for comprehensive
coverage, including personal injury
protection that is unmatched in
Canada.
Contact:
Brian Smiley/Ted Wakefield
Media Relations
Manitoba Public Insurance
(204) 985-7300 or 1-888-554-9549
(toll-free in Manitoba)
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