News and event information for Williams Lake, BC - as it happens.

ICBC reported its financial results for the first six months of 2010 with net income for the first half of the year at $232 million, down from $277 million for the same period in 2009.

"Our customers' smart driving has made a major contribution to our financial results and we have asked for permission to reduce basic insurance rates by 1.9%. This would be in addition to the 3.3% reduction in 2009 optional insurance rates our customers are currently benefiting from," said Jon Schubert, ICBC's President and CEO.

"This 1.9% reduction is a significant filing with BCUC - if approved, it will be the first time in more than a decade that we have been able to reduce our basic insurance rates."

Claims and related costs for the first six months of 2010 were $1.48 billion compared to $1.46 billion for the same period last year. The number of vehicle damage claims has dropped due to our customers' smart driving decisions and supporting VANOC's goal of reducing traffic during the 2010 Winter Games. However, while the number of claims has gone down the cost of the average claim continues to increase - particularly due to an upward trend in bodily injury costs.

ICBC's investment portfolio continues to make a strong contribution to its net income, with investment income being consistent at $251 million for the first half of the year compared to $253 million for the first six months of 2009.

Another factor that has contributed to ICBC's second quarter financial results is a slight increase in premiums written - representing new or renewed insurance policies - up to $1.87 billion from $1.85 billion for the same period in 2009.

ICBC's operating costs remain low and well managed. Operating costs were $285 million during the first half of 2010 compared to $267 million for the same period in 2009. A portion of that increase is due to ICBC making much-needed reinvestments in the business for the benefit of our customers. Operating costs will likely continue to increase in the second half of the year as this is a multi-year investment that is focused on improving our customers' experience and upgrading ICBC's technology systems to increase efficiency.

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