Manitoba Public Insurance reported net income of $164.2 million for the first six months of its 2019/20 fiscal year – an increase of $91.4 million over the same time period last year. This includes net income from the Basic insurance line of business of $119.5 million in the first six months ending August 31, 2019.
“Operational results for the first two quarters of the Corporation’s 2019/20 fiscal year continue to be favourable,” said Mark Giesbrecht, Vice-president, Finance and Chief Financial Officer, Manitoba Public Insurance.
“Historically, there is an increase in claims in the winter months, which offsets the positive financial results typically posted during the first two quarters of the Corporation’s fiscal year. As such, we will continue to closely monitor revenues, claims and claims costs over the remaining two quarters,” added Giesbrecht.
Total earned revenues for the first six months rose by $35.7 million from the same period last year, driven mainly by higher motor vehicle premium revenue resulting from an increase in the number of motor vehicles insured, the value of these vehicles, and an overall 1.8 per cent increase in Basic insurance rates ordered by the Public Utilities Board effective March 1, 2019.
“Factoring out impacts on provisions for unpaid claims due to changing interest rates which are hedged through the Corporation’s asset-liability management process, net claims incurred decreased year over year by $39.6 million. This improvement resulted from a combination of lower accident frequency and improved claims handling,” said Giesbrecht.
In June, the Corporation applied to the Public Utilities Board for an overall increase of 0.1 per cent in Basic insurance premiums for the 2020/21 insurance year and in October subsequently amended its application to a 0.6 per cent decrease to reflect the favourable year-to-date results.