Focus remains on road safety and rate stability
VANCOUVER, Nov. 12 /CNW/ - ICBC's third quarter financial results for 2009 build on a strong first six months and will allow the corporation to continue to invest in road safety initiatives, keep rates low and stable, and begin to plan long-term customer service systems upgrades.
ICBC continues to invest approximately $50 million every year in road safety initiatives and auto crime prevention. This commitment to saving lives and reducing crashes also protects the affordability of insurance in BC - fewer crashes mean lower claims costs, and those savings help keep rates low and stable.
"We thank our customers for driving safely, which continues to contribute to the positive trends we are seeing in the number and total cost of injury claims," said Jon Schubert, ICBC's President and CEO. "We are managing our business and investment portfolio well during these tough times which has put us in a healthy financial position to keep overall basic rates unchanged and reduce our optional rates for 2009 by an average of three percent."
ICBC's net income for the first nine months of 2009 was $422 million, down $15 million from the same period last year. A continued focus on controlling costs and a rebounding investment portfolio contributed to the financial performance.
ICBC's investment income for the first nine months of 2009 was $431 million, compared to $360 million for the same period last year, and is reflective of a well-managed and diversified portfolio.
Operating costs remain low and consistent with previous years. Only four cents of every premium dollar is used for administrative costs to operate the insurance business.
ICBC is also planning to invest in much-needed customer service systems upgrades. This investment will focus on further improving the customer's experience and upgrading ICBC's technology systems to increase efficiency.
Note: ICBC's Statement of Operations for the nine months ending September 30, 2009, accompanies this news release and is available at icbc.com (http://apps.icbc.com/inside_icbc/pdf/stmt_of_ops_sept_09.pdf).
For further information: For further information: Media contact: Adam Grossman, (604) 982-1332