B.C. drivers had better be more careful, otherwise, premiums could start rising.
The Insurance Corporation of BC (ICBC) reported a 25% drop in net profit in the first nine months of 2010, due primarily to a 15% decline in income from its investment portfolio.
Net income for the period was $316 million, down from $422 million in the same period in 2009.
Total claim-related costs edged up marginally to $2.27 billion from $2.26 billion.
ICBC announced in late August that it would be lowering basic insurance rates by 2.4% and optional insurance premiums by an average 3% beginning November 1. The corporation said the move would reduce premium costs by a total of $80 million next year.
The BC Utilities Commission noted that ICBC’s operating expenses have been 2.8% lower than average over the past few years, allowing for a cut in insurance rates.
The reductions are one of the first major cuts in more than a decade.