Manitoba Public Insurance reported today it saw a net income of $21.2 million for the first six months of its 2012 budget year.
That’s a decrease from $34.2 million earned during the same period in 2011.
MPI blames a decrease in investment income.
"Investment income decreased $27.5 million primarily due to unrealized losses relating to investments in bonds," MPI’s vice president of finance and chief financial officer Heather Reichert said in a statement. "Our six-month results remain satisfactory due to stable claim costs."
The decrease will not impact what Manitobans pay to insure their vehicles.
In MPI’s most general rate application to the Public Utilities Board, the Crown auto insurer applied for no overall rate increase for the coming year, a sign MPI says shows that Manitobans continue to receive comprehensive coverage at affordable rates.
MPI also says total earned revenues increased $10.8 million from the previous year. Motor vehicle premiums earned revenue increased $6.6 million (1.5 per cent) because of the continuing increase in the number and value of vehicles insured.
"Total claims costs were stable compared to last year with an increase of only 0.3 per cent ($1.3 million)," Reichert said.
MPI’s financial performance is closely tied to claims costs. Traditionally, MPI sees profits in the first two quarters of the year that are offset in winter months when claims volume increases