Despite bad weather that increased auto claims by 4%, the Insurance Corporation of British Columbia posted a 31% increase in profit for its first quarter, which ended March 31, 2007.
The number of claims connected with car accidents in the province rose to more than 64,300, but ICBC's net income rose to $111 million compared with $85 million in the first quarter of 2006. A rate increase in basic insurance last year contributed to the higher profit margin, as insurance premiums rose to $826 million from $765 million in the first quarter.
A 5% increase in sales of optional insurance and a 3% increase in the number of vehicles insured during the quarter compared with last year's first quarter also helped the insurance corporation's bottom line.
Despite ICBC's strong performance, the insurance corporation applied in March to the B.C. Utilities Commission for a 3.3% increase in basic insurance rates to address a 4% increase in projected bodily injury claim costs.
ICBC noted that, with a 3.8% drop in optional insurance rates, about half of its customers would see their rates decrease slightly or stay roughly the same, with only high-risk customers feeling the crunch.