Today Manitoba Public Insurance reported favourable financial results heading into the final quarter of the fiscal year, which traditionally sees the greatest number of claims due to unpredictable winter weather.

Buoyed by strong investment returns and continued expansion and upgrading of Manitoba’s vehicle fleet, the public auto insurer reported net income of $80.4 million for the nine months ended November 30, 2007, compared to net income of $59.1 million for the same period last year.
 
“Manitobans continue to purchase newer vehicles, which is ultimately reflected in our bottom line,” said Don Palmer, Vice-president of Finance and Chief Financial Officer. “Combined with a strong investment market, this puts us in a good position, even though our claims costs have been higher this year.”

Palmer explained that claims costs for the nine months ended November 30, 2007 increased by $26 million to $572.6 million compared to the same period last year. Physical damage claims incurred increased by $15.5 million thanks in part to a severe hailstorm that struck the Dauphin area in August, resulting in about 14,000 claims with an estimated value of $50 million.

“Manitoba Public Insurance holds reinsurance coverage, which will limit our costs from this incident to $10 million,” Palmer said of the hailstorm.

Bodily injury claims costs rose by $5.3 million over the same period last year to $186.8. Palmer pointed out that every driver can influence how much Manitobans pay for auto insurance through their driving and safety habits.

“All of our customers benefit when our balance sheet is positive,” said Palmer. “We can all contribute to that strength by driving responsibly and avoiding collisions during the final quarter, which is usually a difficult period of time for driving.”

In just over six weeks, when a new insurance year starts, Palmer said more than 480,000 Manitobans will pay the same or less for their Autopac in 2008. It will be the ninth year in 10 that Manitoba Public Insurance has held the line or reduced Autopac rates without lowering customer service or reducing coverage.

Later this spring, Manitoba Public Insurance policy holders will share in their fourth rebate in six years as the corporation returns $63 million to Manitobans in the form of a one-time rebate equalling 10 per cent of the Basic Autopac premiums they paid for the previous insurance year. The average customer will receive a cheque worth about $100. To date, rebates have returned $260 million to Manitoba vehicle owners.

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Contact:
Manitoba Public Insurance Media Relations
(204) 985-7000 or 1-888-554-9549 (toll-free)