MPI net income up on investment gains, lower claims

Manitoba Public Insurance (MPI) is reporting net income of $29.3 million for the first quarter ending May 31, 2003. This is a significant increase over net income of $6.4 million for the first quarter 2002.Claims costs and investment gains both played a role in the positive results, the public auto insurer says. Claims costs for the quarter dropped by $9 million for the first quarter, with a $15.2 million decline in injury claims, and despite a $4.7 million increase in physical damage claims. Investment income for the first quarter was up $4.5 million over the same period last year.We’re encouraged to see our claims costs declined overall in this quarter, though it is too early to tell if this will hold for the year,” says Barry Galenzoski, vice president of corporate finance and CFO. This is because profits are generally made in the first two quarters of the year to offset higher claims in the last two quarters of the year, during the winter months.