The underwriting performance of FBD Holdings to date this year is “in line with expectations”, the insurer will tell shareholders today (Thursday, May 11).
Tomás Ó’Midheach, chief executive of FBD Holdings, will give an update on trading conditions in 2023 during the company’s Annual General Meeting (AGM) in Dublin.
FBD Holdings has seen growth in gross written premium (GWP) of around 8% compared to the same period in 2022.
This growth has been driven by an increased in policies, along with higher average premiums.
FBD Holdings
Although inflation continues to be experienced in property and motor damage claims, Ó’Midheach is expected to say that injury claims have been benign, while there were no significant weather events.
Shareholders will be told that the company is experiencing “strong retention of existing customers”.
Ó’Midheach will say that investment returns have been “positive” to date in 2023 with mark to market gains in the company’s risk asset and bond portfolios and higher income being achieved on reinvestments.
FBD Holdings has a provision of €42 million for business interruption claims relating to its pub policies during the Covid-19 pandemic.
“We now expect the written reasoned ruling from the Judge in the test case in mid-June. This ruling is anticipated to provide certainty in respect of outstanding issues and enable us to pay the balance of claims to publicans,” Ó’Midheach will tell today’s AGM.
The company is monitoring the implementation of personal injuries guidelines on an ongoing basis and will continue to “reflect the impact seen to date in the prices charged to customers”.
Ó’Midheach will tell shareholders that the insurer remains confident “in the underlying profitability, future growth prospects, capital strength of the business”.
Profits
In March, FBD Holdings announced that pre-tax profits in 2022 stood at €74 million, which was down by €36 million compared to the previous year (€110 million).
This was attributed to low injury claims, benign weather and a positive prior-year reserve development of €48.3 million, arising from lower large claims experience in recent years and better-than-expected settlements of smaller claims
The end-of-year results also showed policy count growth of 2.8% with retention levels of existing business increasing 1.5%, reaching a six-year high.
The average FBD premium increased by 0.6% across the portfolio with private motor premiums down 7.2%. There is a proposed dividend of 100c/share.