MPI reports $19.7-M loss as it seeks rate increase

Manitoba Public Insurance has reported it lost $19.7 million in the last fiscal year, just as it’s seeking a 2.07 per cent rate hike to overall basic insurance rates.

The Crown public insurer released its annual report Wednesday, on the second day of the annual rate hearing before the Public Utilities Board. MPI reported the net loss of $19.7 million, for the year ending March 31, 2025 — which is far better than the $129.5 million hit it took one year earlier.

“Like many organizations, MPI continues to face the effects of rising claim costs, global tariffs, and the potential impact on the auto industry, inflationary pressures and shifting political dynamics,” MPI board chair Carmen Nedohin said in a statement.

“We have remained focused and pragmatic in the face of this volatility. Through careful financial stewardship, that saw an increase in earnings over the previous year, and proactive risk management, we have taken meaningful steps to safeguard MPI and protect the investments of Manitobans.”

Earlier this year, MPI asked the PUB for permission to increase its basic insurance rates by an average of $21 per year, or 2.07 per cent, for the average private passenger vehicle. If approved, drivers won’t start paying the increase until April 1, 2026 and March 31, 2027, depending on when their insurance is renewed.

Last year, the board imposed a 5.7 per cent increase even though MPI had asked for a three per cent increase; in 2023, the board ordered a five per cent increase when MPI asked for no increase.

MPI said the total number of claims went up by 2.1 per cent, to 280,300, in the last fiscal year, while the total cost of claims reached $1.2 billion.

The insurer lost $39.6 million on the basic insurance side of its business, up from an $80.2-million loss one year earlier, but it earned net income of $53.7 million on the extension side.

At the driver and vehicle licensing section of its business, it reported a net loss of $29.7 million, more than double the $13.2 million it lost in 2023-24.

“Fiscal prudence continues to be the order of the day,” Nedohin said. “Our goal is to provide the best service to Manitobans at an affordable cost and we need to make the dollars and cents work.”

Other statistics in the MPI report include:

* MPI received an average of 1,121 claims per working day;

* The insurer received 267,323 property damage claims;

* The average number of Autopac policies is 1.3 million;

* and there were 12,977 third party-liability bodily injury and Personal Injury Protection Plan injury claims reported. MPI says PIPP makes sure Manitobans who are injured in vehicle collisions are “fairly compensated for their economic losses.”

kevin.rollason@freepress.mb.ca