Manitoba Public Insurance reported a net income of $23.0 million for the three months of its fiscal year ending May 31, 2015 – an increase of nearly $10 million over the same time period last year. This includes net income to the Basic insurance line of business of $19.8 million in the first three months of the 2015/16 fiscal year.
Total earned revenues for the first three months rose by $15.9 million from the same period last year, driven mainly by increases in motor vehicle premium revenue due to an increase in the volume of motor vehicles insured and a 3.4% overall premium increase approved by the Public Utilities Board for current year.
“The overall financial picture was also buoyed by a decrease of $49.6 million in total claims costs – including a 66.7 per cent drop in bodily injury claims costs and a six per cent decrease in physical damage claims costs compared to the first three months of 2014,” said Heather Reichert, vice-president, Finance and Chief Financial Officer, Manitoba Public Insurance.
“The Corporation is committed to fiscal responsibility and rate stability,” said Reichert. “We’re optimistic that by continuing to work with Manitobans to reduce risk on the road, the positive results experienced in the first quarter can be maintained over the remaining three quarters of the fiscal year.”
In June 2015, Manitoba Public Insurance applied to the Public Utilities Board for no overall increase in Basic insurance premiums for the 2016/17 insurance year. The requirement for no overall premium is possible because of the 3.4% rate increase approved by the PUB for the current year, combined with normal levels of claims costs being forecasted, and the Corporation’s ongoing efforts to control operating costs.