VANCOUVER, B.C. — The Insurance Corp. of B.C. (ICBC) is reporting a net loss of $7 million for the third quarter of 2001.
That compares with a $70 million net income for the same period last year. The net loss for the nine months ended Sept. 30 was $38 million, compared to net income of $312 million for the same period in 2000.
“In our six-month results the company was projecting to end the year with a net loss of approximately $150 million,” says ICBC’s chair, Nick Geer. “Our current projection shows little change.”
The key factors underlying the change in ICBC’s nine-month financial performance in 2001 are a reduction in investment income and no positive development from prior years’ claims. However, the operating loss for insurance operations declined from $287 million to $249 million this year. This was as a result of an increase in premiums earned and total claims and related costs being held at a similar level to that of the past year.
The corporation has streamlined its administrative and operating costs and achieved a reduction in insurance operating expenses in the third quarter from $121 million in 2000 to $106 million for the same period in 2001.
ICBC has been preparing for an end to its monopoly in B.C. and its corporate restructuring is nearing completion — the final cost will be approximately $50 million.
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