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Winnipeg Free Press > Latest News > MPI reports positive net income, rebates likely

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Winnipeg Free Press - ONLINE EDITION

MPI reports positive net income, rebates likely

By: Aldo Santin

Posted: 14/07/2010 3:55 PM | Comments: 25 | Last Modified: 14/07/2010 4:57 PM | Updates

WINNIPEG - An early spring and a decrease in bodily injury claims have combined to give Manitoba Public Insurance a healthy bottom line for the first quarter of 2010.

MPI reported this afternoon that its net income ending May 31 was $102.9 million.

Don Palmer, MPI vice president of corporate finance and chief financial officer, said the financial picture was largely the result of a significant decrease in bodily injury claims and a short winter, which resulted in a decrease in physical damage claims.

Palmer said the decrease in claims costs is not expected to be continued throughout the year.

"Traditionally, the first two quarters of the corporation’s fiscal year generate a profit, which is then offset by an increase in claims during the winter months," Palmer said in a prepared statement distributed this afternoon.

MPI reported its claims costs for the first quarter decreased $85.2 million to $105.4 million — most of the decrease resulting from a $78.2 million decrease in bodily injury claims.

Motorists can expect an average premium rebate of $115 next spring if MPI’s basic insurance rate application to the Public Utilities Board is approved. MPI is seeking a 4 per cent reduction in its basic insurance rate, which would amount to a premium rebate of $92.2 million.

MPI said if the rate application is approved, it would mark the 12th time in 13 years that the average rate for auto insurance had remained the same or declined. MPI made its application last month and the PUB should issue a ruling in the fall.

History

Updated on Wednesday, July 14, 2010 at 4:57 PM CDT:
Removes extra word.

25 Commentscomment icon

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Gotta love those who defend MPI based on Private Insurance is worse. I guess if private insurance is worse we have no right to make MPI better. Or the assumption that if you hate MPI you automatically support private insurance.

My favorite is those who defend MPI based on how low their rates are in comparison. In other words, defending MPI based on the fact they have never made a claim or a claim that MPI tried to illegally refuse. They have never experienced the wrath of MPI's case managers denying a legitimate injury claim with immunity.

MPIC Act Sec 199
web2.gov.mb.ca/laws/statutes/ccsm/p215e.php#199

MPI does not have to even worry about the laws evidence.
MPIC Act Sec 183(2)
web2.gov.mb.ca/laws/statutes/ccsm/p215e.php#183(2)

MPI should be disbanded and/or private insurance allow to operate.
The utter arrogance of MPI and their "claims denial" system is truly disgusting. Mandatory immobilizers? Yes, let's punish our "customers" because a band of punks steal car after car after car. Let's "give away" buildings instead of reducing "customer" rates. Let's overcharge people, put their money in an investment fund, make money, then give them "rebate" cheques. What a joke. I do not believe a solitary word from this out of control government monster.

And for those who say that the private insurance companies are "for profit" and wouldn't give rebate cheque?? Sure that is 100% true. But guess what, they have COMPETITION and have to earn customers unlike MPI's MONOPLY. If private insurers GAVE buildings away like MPI they would be out of business pretty fast!

Having lived out of province, I can say, unequivocally, that private vehicle insurance is better than public. The simply reason being this: choice. You can choose full coverage, partial coverage, liability only, different deductibles, the list is endless.

I had AB insurance on two vehicles and it was $400/year less than MPI. No mandatory immobilizer, GREAT customer service, no hassles. Only difference was the windshield was not covered. But that's the funny part!! Does anyone have ANY IDEA how much they OVERCHARGE for windshields in MB because it PAID for by MPI???? HAHA, what a racket!!

@ Ozzy: MPI didn't have to keep the building and, as you stated, pay taxes, upkeep, utilities, etc. They could have done what anyone in their right mind would have done: SOLD the building. MPI wants to be seen as a legitimate corporation, and this is not a difficult business decision. As a crown corporation, they have set a dangerous precedent of misallocation of public assets.

Motorcycle rates are high because they can get wrecked so easily, someone can push one over and it's written off. You get in a car accident with a motorcycle and the bikes written off and the person could be dead or disabled. Theres lots of risk in insuring motorcycles, I don't see why everyone is complaining about it, it's pretty straight forward to me.

Overcharging for the product and giving rebates later is nothing more than a public relations ploy. Donating the redundant claim facility to the native group was wrong. The property belonged to every Manitoban that pay auto insurance. I have no problem with the organization getting the vacant building however the building should have been sold at market value to the provincial government. The province then could have gifted it to the charitable organization. MPI has lost its original mandate to provide affordable insurance products to Manitobans at cost. It has become an over bloated bureaucracy top heavy with management that are venturing into areas that are far outside their scope. They appear to be pushing the reason they exist off to a back burner. A public review of MPI has never been done and is long overdue.

Another "fine" example of misappropriation of tax payers money. Who pays for the victims of the hit and runs, or the stolen vehicles that cause bodily harm? or the unisured youth joy riding and smashing into a building? or the perpetual car theif who kills an innocent cab driver? We do. If a car theif is hurt during the commision of his crime, who do you think pays for his hospital bills?

MPI is showing a profit once again, not because of fewer claims, but fewer settlement payouts. Mpi routinely refuses payment to victims of accidents, or Catastophic Injury payments contributing to the continued victimization of the insurance holder. Mpi will continue to show a profit, their profit is our insurance premiums. If limited monies is being payed out that equals a profit.
Also, continued implemmentation of money grabbing initiatives like, fines for loud pipes on Harley Davidson Motorcycles will increase their profit margin. None of this money will be used for it's rightful purpose.
I pay through the nose for my motorcycle insurance and I will continue to pay but if I ever am involved in an accident, I will have to jump through burning hoops of fire in order to have my claim recognised and paid out.
I think MPI should stop increasing our premiums and lower their profit margin.

Always gotta love the people that just slam MPI no matter what.

Ok, we get it, you don't like Autopac or MPI, infact you hate it! You've made that clear and we get the point. But let me ask you something. Do you really believe that a private institution will treat you better and give you better deals on your auto insurance for things like coverage, third party liability? Private institutions for auto insurance(much like health-care in the U.S) are there for the 1 main reason, Profit! Putting it before people. The average insurance rate in the U.S is nearly double then Manitoba or other single-payer insurance jurisdictions.

Plus when MPI makes a profit, you get a rebate back, and if you've read clearly, they're wanting to DECREASE our rates by 4%. Do you honestly think a private insurance place will give you a cut of their profits on your insurance for being a customer? Fat Chance(unless you're a wealthy stock holder).

Yeah sure, MPI/Autopac has problems, like anything, and for me to say there are no problems is being naive. But considering from what i hear from family and friends in other places, we got it pretty good here for Auto Insurance, for what we pay, and what kind of coverage we get.

The grass isn't always greener on the other side.

(i await people who have different opinions of mine to tar and feather me...we can differ sure, but please be reasonable about it, and not just spewing)

@ Ozzy: Sorry to advise, the building was not dysfunctional.

MPI has now told one of our listeners that contrary to their assertion it had a "book value" of 95k, they now admit the donation was worth $1.4 million. According to our research it went to a group that was in a clear conflict of interest. The only "negative" as you put it, is how the Board of MPI made a decision to force shareholders to pay $1.00 per policy to support one particular group instead of selling the building and distributing the revenue to many such agencies that help the community.


Have you noticed how many vehicles are on the road displaying expired insurance stickers??!!! While I appreciate some out there may have actually paid and have simply forgotten to put the new sticker on, there are in my opinion, far too many vehicles on the roads displaying expired stickers. Cannot help but wonder how much of a rebate we'd receive if everyone paid their insurance on time....

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