North Vancouver-headquartered Insurance Corporation of B.C. reported a 14.7% increase in net profits for its first quarter, which ended March 31.
Net income rose to $117 million from $102 million in 2008's first quarter due to declines in the number and cost of injury claims. The Crown corporation said good weather and improved claims handling procedures helped the company's bottom line.
Claims and related costs for the quarter fell to $735 million from $761 million in the same period last year. ICBC said claim costs were reduced because fewer vehicles were on the road.
Investment income primarily from its bonds, was relatively flat at $123 million, down slightly from the $125 million reported in 2008's first quarter.
However, ICBC said the recession is eroding premium income. Total premiums fell to $843 million in the first quarter compared with $860 million in the company's previous first quarter. ICBC said the slowdown in written premiums would likely have a greater impact on the company's financial results in the rest of the year.