Manitoba Public Insurance reported net income of $176.6 million for the first nine months of its 2019/20 fiscal year – an increase of $89.2 million over the same time period last year. This includes net income from the Basic insurance line of business of $121.2 million in the first nine months ending November 30, 2019.
“MPI remains in a solid financial position heading into the final quarter of the fiscal year,” said Mark Giesbrecht, Vice-President, Finance and Chief Financial Officer, Manitoba Public Insurance.
Total earned revenues for the first nine months rose by $52.1 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 $3.2 million. This improvement resulted from a combination of lower accident frequency and improved claims handling,” said Giesbrecht.
Recently, the Public Utilities Board approved MPI’s rate application of an overall rate decrease of 0.6 per cent along with the Corporation’s proposed Capital Management Plan and 100 per cent Minimum Capital Test Basic target capital level.
“MPI’s new capital target and framework will serve to protect ratepayers from future rate hikes and aligns the interests of the Basic and Extension lines of business,” added Giesbrecht. The new rates take effect March 1, 2020.