The third-quarter financial report for MPI’s 2019/20 fiscal year has been released.
A net income of 176.6 million dollars has been reported, which is an 89.2 million dollar increase compared to the same period last year.
Total earned revenue has risen by 52.1 million dollars compared to the same period last year, because of higher motor vehicle premium revenue resulting from an increase in the number of motor vehicles insured, the value of the vehicles, and an overall 1.8 per cent increase in basic insurance rates ordered by the Public Utilities Board that came into effect March 1st, 2019.
In a press release, Mark Giesbrecht, Vice-President, Finance and Chief Financial Officer with MPI says there’s another reason for the income increasing.
“Factoring out impacts on provisions for unpaid claims due to changing interest rates which are hedged through the Corporation’s asset-liability management process, net claims incurred decreased year over year by $3.2 million. This improvement resulted from a combination of lower accident frequency and improved claims handling.”
Recently, the Public Utilities Board approved MPI’s application for an overall rate decrease of 0.6 per cent along with the corporation’s proposal of the Capital Management Plan and 100 per cent Minimum Capital Test Basic target capital level.
In the press release, Giesbrecht adds,
“MPI’s new capital target and framework will serve to protect ratepayers from future rate hikes and aligns the interests of the Basic and Extension lines of business.”
The new rates take effect on March 1st this year.
