Money, Please, Indefinitely – A Valuation of Manitoba Public Insurance

Crown Corporations, Ian Madsen, Valuation

Manitoba Public Insurance, ‘MPI’, is the provincial government-owned motor vehicle insurance company in Manitoba. It could be worth as much as $3.24B were it divested; or, it could be worthless, as its chronic loss-making and cash burn make it unattractive.

As a business, its free cash flow is negative, and projected to remain that way. So its value, on a fully taxed basis (as a Crown corporation, it pays no tax, now), is
estimated between negative $121M (median in a range of values) and negative— $156M (mean, or simple average of the plausible range of results).

Another method, using comparable Canadian insurance companies and other financial firms, the range is a positive $537M (median of the range of values) to $1.35B (mean, or simple average, of the range of values). It could approach the highest figure if it shows that it has a realistic plan to either boost revenues or lower costs in the near future, and sustainably so.

Read the entire Valuation here: VS13_MPI-Valuation_JA1519_F1