Profit before tax more than doubled to €38.7m at FBD for the first six months of this year, compared to the same period last year when it made a pre-tax profit of €18.4m.
The strong performance was driven by profitability in writing insurance, with underwriting profits up 54% or €10m to €29.2m for the half year. There was a prior year reserve release of €8.8m in the period compared to a €6m release in 2018 half year.
Premiums fell €2m to €190m for the six months compared to the same period last year due to strong competition.
The combined operating ratio, which is a factor of how profitable the business is based on the insurance it writes, was 82.5%, down from 88.6% in the first half of 2018. Anything below 100% is profitable.
Investment returns improved from €1m in the first six months of 2018 to €9m for the first half 2019 as a result of the recent market rally.
Discipline
Fiona Muldoon, group chief executive, said: “I am pleased to announce these strong 2019 half-year results reflecting our excellent underwriting discipline, an exceptionally benign winter, some prior year reserve releases and supplemented by strong investment returns in the period.
She added that premium levels were down marginally due to strong competition and modest rate decreases. She said FBD wants to grow its business in the face of strong competition but is also committed to underwriting discipline and to writing the risks it understands.
Cost of claims
Muldoon said the cost of claims continues to increase and reiterated that the average cost of court awards, particularly for soft-tissue injuries, remains too high.
She said there has been no meaningful progress on structural reform and Irish businesses continue to be held to impossible standards in personal injury cases.
Read more
Farmers at war with factories
In pictures: is this the largest silage trailer ever built in Europe?
Transparency in dairy; smoke and mirrors in beef
Profit before tax more than doubled to €38.7m at FBD for the first six months of this year, compared to the same period last year when it made a pre-tax profit of €18.4m.
The strong performance was driven by profitability in writing insurance, with underwriting profits up 54% or €10m to €29.2m for the half year. There was a prior year reserve release of €8.8m in the period compared to a €6m release in 2018 half year.
Premiums fell €2m to €190m for the six months compared to the same period last year due to strong competition.
The combined operating ratio, which is a factor of how profitable the business is based on the insurance it writes, was 82.5%, down from 88.6% in the first half of 2018. Anything below 100% is profitable.
Investment returns improved from €1m in the first six months of 2018 to €9m for the first half 2019 as a result of the recent market rally.
Discipline
Fiona Muldoon, group chief executive, said: “I am pleased to announce these strong 2019 half-year results reflecting our excellent underwriting discipline, an exceptionally benign winter, some prior year reserve releases and supplemented by strong investment returns in the period.
She added that premium levels were down marginally due to strong competition and modest rate decreases. She said FBD wants to grow its business in the face of strong competition but is also committed to underwriting discipline and to writing the risks it understands.
Cost of claims
Muldoon said the cost of claims continues to increase and reiterated that the average cost of court awards, particularly for soft-tissue injuries, remains too high.
She said there has been no meaningful progress on structural reform and Irish businesses continue to be held to impossible standards in personal injury cases.
Read more
Farmers at war with factories
In pictures: is this the largest silage trailer ever built in Europe?
Transparency in dairy; smoke and mirrors in beef
This is a subscriber-only article
SHARING OPTIONS: