FBD Holdings PLC has reported a profit before tax of €22 million in the first half (H1) of 2021, after seeing a €9 million loss in H1 2020.
The results include a €13 million provision for consequential payments following Financial Services and Pensions Ombudsman (FSPO) rulings on business interruption complaints after consideration of the Central Bank of Ireland’s Business Interruption Insurance Supervisory Framework.
The business interruption best estimate of ultimate net costs for claims from pubs increased marginally to €67 million, the company said.
FBD’s investment portfolio saw an annualised return of 0.9% at the half-year point, equating to positive investment returns of €5 million.
The company said its capital position “remains strong”, with a solvency capital ratio of 198% (unaudited).
The average insurance premium across the portfolio was down 2.1%, with motor insurance down 5.7%.
There was an increase of 3,500 policy holders since the beginning of 2021.
Gross written premium (GWP) was reported at €181 million, compared to €176 million in 2020. However, FBD noted that, when Covid-19 pandemic-related premium rebates of €5 million are excluded, GWP was in fact down 1%.
On the other hand, the value of these rebates decreased by over half since H1 of 2020, when they were €11 million.
Underwriting profit was noted at €13 million (compared to a H1 2020 loss of €5 million). This was due to claims frequency reductions; benign weather; and positive prior year reserve development of €7 million.
Net claims incurred (net claims and benefits plus movements in other provisions) reduced by €9.5 million to €107.5 million, with the main change relating to business interruption claims costs incurred in H1 of 2021 of €2.1 million, compared to €30 million in H1 2020.
At the end of H1 2021, net asset value per share was €11.37, an increase from €10.95 at the end of 2020.
Group chief executive Tomás Ó’Midheach said: “I am delighted to report that FBD has delivered a strong set of interim results with a positive backdrop of reducing restrictions and an advancing vaccination program.
“The real impact on the economy will become clearer when government income supports are removed and, despite the variant uncertainty, there are many reasons for renewed optimism,” he added.