VANCOUVER, B.C. — The Insurance Corp. of B.C. (ICBC) has returned to profitability after a transitional year that resulted in many layoffs and heavy restructuring.
In 2002, ICBC reported a net income of $45 million, compared to a loss of more than $250 million the previous year. Increasing claims costs and investment losses plagued the government-owned insurance provider in 2001, prompting many to speculate the province may allow competition in the insurance sector.
ICBC chairman, Nick Geer, says the Crown Corporation slashed costs by 26 per cent since 2000 and reduced its staff by about 20 per cent. He adds the corporation is now being run like a business to deliver the best value to its customers.
However, claims costs are continuing to increase. There was a 3.2 per cent increase in claim costs last year with auto crime jumping seven per cent.
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