Manitoba Public Insurance reported stable financial results today as it enters the final quarter of fiscal 2003 – traditionally the most claims-heavy period.

Bolstered by strong investment returns, Manitoba Public Insurance reported net income of $38.7 million for the nine months ended November 30, 2003. That is up from $23.1 million earned during the same period in 2002. However, the rising number and cost of claims continue to be a concern. Claims costs for the nine-month period rose by nearly 12 per cent over last year, driven by a 49.2 per cent rise in the severity of injury claims.

“It is important to note that these latest results flow from strong investment growth while the underlying claims trends remain a concern,” said Barry Galenzoski, Vice-President of Corporate Finance and Chief Financial Officer. “We also need to acknowledge that past experience tells us that Manitoba Public Insurance loses money in the last quarter of its fiscal year due to winter claims volumes.”

Investment income has been strong, rising to $85.4 million for the period compared with $45.8 million last year. Continued expansion and upgrading of the province’s vehicle fleet helped drive up total written premiums to $526.7 million for the nine-month period, up 6.1 per cent from 2002.

Claims costs for the period were $477.6 million, compared with $426.7 million for the first nine months of 2002. Galenzoski added that Manitoba Public Insurance has experienced a record number of serious injury claims such as quadriplegia, paraplegia and brain injuries in 2003.

“It is important for every Manitoban to understand that they determine what we will pay for auto insurance in the future,” Galenzoski said. “Because we provide insurance at cost, the amount of premium we collect is directly related to the number of crashes that take place. Through their personal driving record, every Manitoba driver can make a difference.”

Galenzoski said customers will directly benefit from the rebound in investment income because this revenue source helps lower the cost of every premium. Independent studies show Manitobans continue to pay among the lowest rates in the country for comprehensive coverage, including the best personal injury protection in Canada.

Contact:
Brian Smiley/Ted Wakefield
Media Relations
Manitoba Public Insurance
(204) 985-7300 or 1-888-554-9549 (toll-free in Manitoba)