Manitoba Public Insurance releases stable third quarter results – but braces for higher than normal winter claims

Buoyed by a strong, one-time investment gain, Manitoba Public Insurance reported net income of $64.5 million for the nine months ended November 30, 2013 compared to net income of $15.1 million for the same period last year.

Claims incurred for the nine months ended November 30, 2013 increased by $11.0 million or 2.0 per cent compared to last year, said Heather Reichert, Vice-President, Finance and Chief Financial Officer, Manitoba Public Insurance. Physical damage claims incurred increased by $19.7 million or 5.5 per cent, while bodily injury claims incurred decreased by $8.8 million or 4.7 per cent.

However, Manitoba Public Insurance cautions that while the first nine months have been stable, winter claims counts are already far higher than historical levels.

“December collision and injury claims were both more than 17 per cent higher than last December’s claims,” said Reichert.

The collision frequency in early January has not improved from December.

“After three quarters of the year, the corporation is in stable financial position thanks primarily to a rebound in the investment markets. But we are entering the final quarter already facing much higher than normal winter claims counts.”

“Fiscal responsibility continues to be a high priority with the corporation,” said Reichert. “Despite inflationary increases, the corporation’s operating expenses remain at the same level as the prior year over the first nine months,” said Reichert.

“Motorists need to drive to the conditions of the road and avoid collisions during the final quarter which is usually a difficult period of time for driving.”

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