VICTORIA, B.C. — Despite the fact that the Insurance Corp. of B.C. (ICBC) is scrambling to save money by buying out hundreds of employees, the company still stands to lose a lot of money this year.
The B.C. government-run insurer reported a $30.6 million loss yesterday over the last six months. That’s down dramatically from their $242.5 million net income reported for the same six-month period last year, ending June 30, 2000.
And company officials admit it will get worse before getting better, with losses of about $150 million by the end of the year anticipated.
ICBC chairman Nick Geer tells local media that "We are concerned for the year as a whole that there may indeed be a loss. He blames deteriorating equity markets, and a lack of positive trends in prior year’s claim costs.
Although ICBC has yet to announce a premium increase, observers say it is inevitable that rates will be jacked up to help compensate for the losses.
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