Lower ICBC rates in 2008

    Strong financial management helps keep rates low and stable

    VANCOUVER, March 12 /CNW/ - ICBC has reported strong financial results
and high customer satisfaction scores for 2007.
    "Our early analysis indicates that there is no need for additional rate
changes for basic insurance this year", said Paul Taylor, ICBC's president and
CEO. "Furthermore, there is room for a 3 per cent reduction in rates for
optional insurance, partly due to declining claims costs for vehicle theft."
    Net income is reported at $642 million, including investment income of
$612 million. The strong increase in investment income is due in part to the
sale of the Central City development in Surrey.
    "ICBC's financial performance in 2007 has allowed the company to build
capital up to the required levels, ahead of schedule," said Taylor. "This
capital serves as a contingency fund to help keep rates low and stable by
absorbing unexpected spikes in claims costs or unanticipated significant
declines in investment income."
    The company also continues to invest in road safety programs to reduce
the number and severity of crashes, and to help lower claims costs. Examples
include support for enhanced traffic enforcement, road improvements at
high-crash locations, and public awareness campaigns.

    Continued strong financial management helps keep rates low and stable

    -   Investment income in 2007 was $612 million, an increase from
        $512 million in 2006.

    -   The turnaround and sale of the Central City development in Surrey
        contributed $135 million to the year's investment income.

    -   ICBC continues to be an industry leader for low operating costs.

    Customer satisfaction targets exceeded

    -   In 2007, all customer satisfaction measures met or exceeded the
        year's targets.

    -   High levels of customer satisfaction were confirmed by an independent
        third-party organization.

    -   Levels of customer satisfaction for:
        -  Insurance services            93%
        -  Claims services               84%
        -  Driver licensing services     91%

    (Surveys conducted by NRG Research Group; sample sizes of 1,000, 7,500,
    and 4,000 respectively.)

    Rate stability continues in 2008

    -   For about half of customers who chose ICBC for their basic and
        optional insurance, rates in 2008 will be lower or roughly the same
        as they were in 2004.

    -   The average premium for optional coverage decreased 3.8 per cent in
        2007, and will decrease by an additional 3.0 per cent in 2008.

    -   Premiums for basic coverage increased by 3.3 per cent in 2007, mainly
        due to increases in the average cost of payouts for customers with
        injury claims. Higher costs for injury claims predominantly affects
        basic insurance because about three-quarters of all payouts for
        injuries are under basic coverage.

    Average Rate Changes for all vehicles
    Basic Insurance
    2008(*)            2007           2006           2005           2004
    0.0%               3.3%           6.5%           0.0%           0.4%
    Optional Insurance
    2008(xx)           2007           2006           2005           2004
    -3.0%              -3.8%          0.0%           -7.6%          0.4%
    2008               2007           2006           2005           2004
    -1.3%              0.2%           3.7%           -3.4%          0.4%

    (*)    2008 rate plan for basic insurance

    (xx)   2008 optional rate reduction effective July 1, 2008

    Note: The Statement of Operations for the year ended December 31, 2007
    accompanies this news release and is available at

For further information:

For further information: Media contact: Doug McClelland, (604) 982-2476

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