ICBC net income almost triples in first nine months of 2004

The Insurance Corporation of B.C (ICBC) saw its net income almost triple in the first nine months ending September 30, 2004. The province’s public insurer saw net income rise to $317 million during the nine-month period, up from $112 million in 2003.Net earned premiums were up over the comparative period to $2.3 billion from $2.1 billion the year prior this is the result of both a jump in number of policies sold, as well as rate increases earning out. Year-to-date, claims were static at $1.9 billion, but the public insurer saw a big boost from a $62 million positive adjustment for prior years claims. This led to a $99 million underwriting gain for the nine-month period, compared to a $63 million underwriting loss for the same period a year ago.Investment income also jumped in the first nine months of 2004, up to $291 million from $235 million last year at the same point. The public insurer’s licensing operations were relatively static, producing a $75 million loss in the first nine months of 2004, compared to a $74 million loss last year.Despite the strong results, ICBC is quick to point out that the improvement in underwriting and investment results is “unexpected and should not be counted on for future years”. However, the public insurer also notes that auto theft claims appear to be leveling off to some degree.