ICBC sees slight Q2 decrease

The Insurance Corporation of British Columbia’s (ICBC) net income for the second quarter of 2005 was $164 million, a slight decrease from $167 million for the comparable period last year.

“The average cost of injury claims continues to be an area of concern,” Paul Taylor, ICBC’s president and CEO, says. Taylor adds that the increase in claims and related costs exemplifies the volatile nature of claims costs as well as the impact they have on ICBC’s bottom line.

Claims and related costs for the first six months of 2005 were $1.34 billion, a 6% increase from than the first six months of 2004. Despite the increase, the overall numbers of claims for the second quarter were slightly lower than claims for the comparable period in 2004. The ICBC reports that the number of comprehensive claims declined by 3.7%.

Fuelling the growing costs for ICBC policyholders was a consistent increase of auto thefts. In order to reduce the risks and cut claims, the ICBC successfully implemented the Bait Car program – a concerted effort that succeeded in decreasing down auto claims costs.

The insurance premiums earned for the second quarter were $1.54 billion, an increase from the $1.48 billion earned in the same period of 2004. The ICBC says the increase is a direct result of increased optional coverage sales alongside an increase in the number of vehicles on the road.

ICBC investments reportedly contributed to the net income in the first six months of 2005, increasing to $255 million from $215 million for the same period in 2004.