By: Luke Jones, Published on July 18, 2017 09:16 AM, Last Update on July 19, 2017 10:07 AM
Manitoba Public Insurance Corporation (MPI) announced its second quarter 2017 revenues recently, covering the three months ending May 31. The public insurance provider saw increased revenue of 3.7% year-on-year.
The crown corporation is the sole provider of compulsory auto insurance under a public model system in Manitoba. In the announcement, the monopoly said its net income for Q2 frame was $38.9 million. While the second quarter of 2017, the period defined in the results is MPI’s fiscal first quarter as the company’s fiscal year started in March.
Net income was significantly up, seeing an increase of $31.4 million compared to the same period in 2016.
“Total earned revenues for the first three months rose by $17.0 million from the same period last year, driven mainly by a 3.7 per cent increase in overall premiums approved by the Public Utilities Board effective March 1, 2017, and increases in motor vehicle premium revenue due to an increase in the number of motor vehicles insured and the value of these vehicles,” MPI said in a release.
“The overall financial picture was affected by an increase of $33.7 million in total claims costs – including a $34.5 million increase in bodily injury claims and a $5.5 million decrease in physical damage claims compared to the first three months of 2016,” adding Peter Yien, MPI’s acting vice president, finance and chief financial officer.
MPI delivers the basic auto insurance requirements mandated on all drivers in Manitoba, a position it has held since it was incorporated in 1970.
Over its last fiscal year (ending Feb. 28, 2017), the company reported net premiums written of $1.15 billion, a slight increase of $1.1 billion for the previous financial year. Underwriting loss last year was $182 million compared to $26.6 million for 2015-2016. sms now