ICBC reports Q1 profits of $111 million

The Insurance Corporation of British Columbia (ICBC) has reported net income of $111 million for the 2007-Q1, an increase from 2006-Q1s $85 million. According to an ICBC statement there were more than 64,000 crashes in the first three months of 2007, which is an increase of almost 4% over the same period of 2006. ICBC attributes this increase to the worse-than-average weather conditions during this period.Insurance premiums earned for the first three months of the year increased to $826 million from $765 million in 2006.The increase in rates for basic coverage implemented in 2006 and higher sales of optional coverage have resulted in a 4.8% increase in the average premium, according to an ICBC statement. There was also an increase of approximately 3% in the number of vehicles insured. Net claims costs for the quarter increased by approximately 5.4% to $669 million , which compares to $634 million for 2006-Q1. Increases in the average cost of claims, particularly crashes involving injuries, continue to be an issue for ICBC and its customers, the press release says. The impact is largely felt on rates for basic insurance, the corporation notes, becaure more than three-quarters of cost of all of the injury claims that ICBC handles are covered by basic insurance.ICBC has announced plans to charge additional premiums for high-risk drivers, which will help keep rates low and stable for good drivers and help manage the impact of rising claims costs, Paul Taylor, ICBCs president and CEO, said in a statement.