For the six months ended August 31, 2009, Manitoba’s public auto insurer reported a net income of $25.5 million – a decrease from $40.3 million earned during the same period in 2008.

Claims costs for the six-month period increased by $22.6 million or 5.9 per cent compared with the first six months of 2008. Physical damage costs rose 8 per cent over the same period last year, due in large part to a severe hailstorm which struck southern Manitoba on August 13 and 14. This storm resulted in more than 9,000 hail claims being opened with MPI.

The total damage caused by the hail is estimated at $35 million, of which the net cost to the corporation will be $15 million. Under MPI’s business practices, the corporation’s re-insurer will pay out the remaining $20 million.

Injury claims costs increased 4.3 per cent.

Manitoba’s immobilizer program continues to generate positive results, reflected in theft and attempted theft claims decreasing 22 per cent, or $3 million compared to the same period of ’08.

Building on the success of the corporation’s anti-theft efforts, Manitoba Public Insurance has requested no overall change in Basic Autopac rates for 2010/11. If approved by the Public Utilities Board, this will be the 11th year out of the last 12 in which Manitoba Public Insurance has held the line on, or decreased, the average rate paid by Manitobans for Basic auto insurance.