FBD Holdings plc reported a pre-tax profit of €81.4m for 2023, up from €65.8m in 2022.

The company said that insurance revenue increase by 5.6% to €401m, with the number of policies rising by 2.6% during the year.

FBD is proposing a dividend of €1 per share and has allocated €4m for a possible share repurchase. The company said that it is “considering the merits and costs of retaining the company’s listing on the London Stock Exchange” and may switch to a single listed on the Dublin stock exchange.

Looking at the insurance market during the year, it is clear that FBD remains concentrated on its traditional market for growth. The report said over 70% of the increase in gross written premiums during the year came from farmer and business relationship customers.

Looking at average premium costs, farm multi-peril premiums on average increased by 5.6% while house average premium jumped by 10.8%, which FBD said reflected increasing construction costs.

Tractor premiums

Average tractor premiums were also among the fastest increasing in cost, with a 9.1% rise during the year. This follows a 5.6% rise in 2022. Both this year and last year said the increase in premiums was “due to a higher proportion of newer tractors and increasing value of existing tractors”. Last year's rise also reflected a rate increase to offset inflation in costs of motor damage claims.

Looking at payouts for claims, FBD said there remains considerable upward pressure on constituent costs (parts, labour and paint) for motor claims. Motor damage claims were 11% higher during the year while settlement costs increased 17%.

Injury claims increased by 4% while the average cost of settlement payments was 3% lower.

The insurer said that it made an investment return of €19.1m during the year as bond markets reversed much of the 2022 selloff that saw FBD lose €10.8m on its investment holdings.

FBD said it expected to make its previously announced €2.5m contribution to the Padraig Walshe Centre for Sustainable Animal and Grassland Research at Teagasc Moorepark by the end of this year.