MPI reports claims costs up

Solid investment income helped Manitoba Public Insurance (MPI) offset a significant rise in claims costs for the first quarter of 2006, MPI reported.

For the three months ended May 31, 2006, MPI’s claims costs were up CD$17.1 million, or 11.5%, over the same period a year earlier. The corporation’s investment income grew almost as quickly, increasing by CD$14.9 million compared to 2005 Q1.

As a result, the company reported net income from operations of CD$56.3 million – an increase of 6.4% over the CD$52.9 million earned during the same period in 2005.

“We’re pleased with the first-quarter results,” Barry Galenzoski, MPI’s vice president of corporate finance and CEO, said in a press release. “But we can’t ignore the rise in claims costs with respect to bodily injury and physical damage.”

Galenzoski noted 2006 Q1 physical damage claims increased by CD$6.2 million, and the number of claims reported increased 8.6% to 63,613. The cost of bodily injury claims also increased by 12.3% over the quarter to CD$55.2 million.