June 12 , 2008

Manitoba Public Insurance releases 2007 Annual Report

Manitoba Public Insurance closed out its 2007-08 fiscal year in a healthy financial position, as reflected in its Annual Report which was released today.

All three lines of business reported profits totalling $34.9 million after a $62.6 million surplus distribution. Total revenues were $869.7 million, up from $837.7 million the previous year and net investment income grew to $125.5 million, from $120.4 million.

“Total claims costs decreased marginally by $3 million or less than one per cent from the previous year,” said Don Palmer, Vice President of Finance and Chief Financial Officer. “The Immobilizer Incentive Program and Winnipeg Auto Theft Suppression Strategy are having a significant positive effect as theft claims and attempted theft claims costs declined by $ 11.8 million.”

These savings were offset by severe weather-related claims including a catastrophic hailstorm that struck Dauphin and other Manitoba communities in August 2007, explained Palmer. The catastrophic hailstorm resulted in approximately 14,000 claims costing $50 million. Manitoba Public Insurance holds reinsurance coverage against this loss that will limit its exposure to $10 million.

Manitoba Public Insurance realized these achievements without sacrificing customer service. In 2007, the company met or exceeded corporate-wide customer service standards 94 per cent of the time.

Last year, Manitobans filed an average of 1,121 claims every working day. This represents about $2.3 million in claims costs every working day.

Tomorrow, the corporation will file its 2009 Basic Rate Application with the Public Utilities Board.

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