Manitoba Public Insurance (MPI) reported yesterday that for the first six months of the 2016-17 fiscal year it took a net loss of $30.9 million. The public insurer said that (as of August 31) an increase in basic insurance claims of $52.7 million was likely the cause for this deficit.
“The overall financial picture was affected by an increase of $193.7 million in total claims costs,” MPI vice-president of finance and chief financial officer Heather Reichert told Winnipeg Sun
“Total claims costs included a $138.3 million increase in bodily injury claims and a $53.8 million increase in physical damage claims compared to the first six months of 2015-16,” Reichert continued. “The bodily injury increase is primarily due to the interest rate adjustment on unpaid claims, however, an increase in collision claims is also negatively impacting claims costs.”
The public insurer revealed that its total earned revenue for the first six months was $597.7 million - a $34.7 million increase from the same period last year. MPI said that this was due to an increase in the number of vehicles insured and their values.
MPI also generated an additional $116.8 million in investment income compared to the previous fiscal year.
For the next fiscal year, MPI has requested a 2% rate hike for basic insurance. The insurer is also asking the Public Utilities
Board to intrude an Interest Rate Forecast Risk Factor.
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