ICBC net income doubles in first half of 2004

Net income for B.C.’s public auto insurer more than doubled in the first half of 2004, to $166.8 million from $77.4 million a year earlier.Investment income paid a key role in the growth, rising to $215.4 million for the first six months of 2004 from $190.0 million during the same period in 2003, largely from increased gains on the sale of equities.While premiums rose slightly to $1.5 million from $1.4 million during the same period, claims costs also rose 1.8% to $1.3 billion over the period. This is the result of the small increase in the number of claims, as well as growth in cost per claim, but also a positive adjustment for the re-estimate of prior years’ unpaid claims.ICBC notes that the offsetting rise in premiums came as a result of rate increases implemented in 2003, but that this growth also caused a concurrent rise in commissions and premium taxes. In the first half of 2004, controllable costs were up 2% over the same period in 2003, as a result of investment in road safety and traffic enforcement programs.