By CRM staff
Toronto, Ontario -- January 19, 2019 -- Manitoba Public Insurance is trending in the right direction. The public insurer reported a net income of $87.4 million for the first nine months of its fiscal year ending on November 30, 2018, representing an increase of $26.1 million over the same period last year. The figure includes net income from the basic insurance line of business of $42.3 million in the first nine months of the 2018/2019 fiscal year.
“Total earned revenues for the first nine months rose by $65.8 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 2.6 per cent increase in Basic insurance rates ordered by the Public Utilities Board for the 2018/19 insurance year,” said Mark Giesbrecht, vice-president, Finance and Chief Financial Officer, Manitoba Public Insurance.
“While net claims incurred are down $28.6 million year over year; when excluding the impact of changing interest rates which is largely offset in investment income through the Corporation’s asset-liability matching program, net claims have risen $13.3 million when compared to the first nine months of the 2017/18 fiscal year. This increase in claims of $13.3 million is split evenly between physical damage claims and bodily injury claim costs,” added Giesbrecht.
All Manitoba residents stand to benefit from the Corporation’s Personal Injury Protection Plan (PIPP) which compensates all those injured in a vehicle accident, regardless of who is at fault.
“When a Manitoba resident is injured in a car accident, actuarially determined reserves are established to ensure claimants will receive full value of the benefits they are entitled to, when those obligations come due,” said Giesbrecht.
Manitobans pay some of the lowest auto insurance premiums in all of Canada and will continue to do so with only a small increase in rates, 1.8 percent in Basic Insurance premiums, for the 2019/2020 insurance year.