The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.
Manitoba Public Insurance (MPI) reported positive financial results this week as it enters the final quarter of fiscal 2004 Ð traditionally the most claims-heavy and costly period. "After three quarters of the year, the corporation is in a strong financial position thanks to some pretty strong investment returns and some lower claims costs," said Barry Galenzoski, Vice-President of Corporate Finance and Chief Financial Officer. "This good news has to be tempered with the reality that we are heading into the final winter months, and as we've seen in the past, the weather can have a huge influence on the number of claims we pay out." For the nine months ended November 30, 2004, the company reported a net income of $81.5 million, up from $38.7 million earned during the same period in 2003. Typically, Manitoba Public Insurance generates a surplus in the first two quarters of its fiscal year, which is offset in the latter half of the year as claims volume and costs increase during fall and winter months. Fewer serious injuries this year and milder autumn weather helped reduce claims costs by nearly four per cent for the nine-month period compared with 2003. Injury claims costs decreased 17.2 per cent compared with the same period last year, while physical damage costs rose 5.0 per cent. Total earned revenues rose 7.7 per cent or $39.3 million. "This demonstrates how every Manitoban can directly influence auto insurance rates in Manitoba,'' Galenzoski said. "Because we deliver insurance at cost, fewer crashes and injuries mean fewer payouts and that helps us keep rates stable and premiums affordable." Galenzoski said investment revenue, while down by about $10 million from last year, continues to benefit customers by helping to lower premiums. In 2003, this important revenue source reduced the cost of every premium by an average of about $142. Independent research shows Manitobans continue to pay among the lowest rates in the country for comprehensive coverage, including personal injury protection that's unmatched in Canada.
