ICBC reports increased net income for Q1

ICBC has reported a 2009 Q1 net income of Cdn$117 million, up from Cdn$102 million in 2008 Q1. “We are pleased with our financial results given the tough economic times we are all experiencing,” ICBC president and CEO Jon Schubert said in a release. “In particular, the continuing decline in the number and cost of injury claims is good news for our customers. “Good weather and improved claims-handling procedures have benefited our customers and had a positive impact on our net income.”Claims and related costs for 2009 Q1 totaled Cdn$735 million, down from Cdn$761 million in 2008 Q1. Lower premiums of Cdn$843 million in 2009 Q1 were the product of the economic downturn, which resulted in fewer drivers on the road, ICBC said. In 2008 Q1, premiums were Cdn$860 million. The slowdown in premiums written will likely have a greater impact on ICBC’s financial results going forward throughout the year, the company notes. Investment income for 2009 Q1 was Cdn$123 million. “Our financial strength is allowing us to reduce optional rates for 2009 by an average of 3%, effective October 1, 2009,” Schubert said. “Preliminary indications are that basic rates will remain the same for this year.”