FBD reveals its financial summary for 2018

FBD Holdings plc has revealed it preliminary financial announcement for 2018, showing a €50 million profit before tax.

It also reveled a proposed dividend for the year of 50c/share, and a full-year return on equity of 15%.

All-in-all, the results show “excellent financial results” for 2018, according to the firm, as a result of “continued underwriting discipline”.

FBD attributes its success in 2018 to a number of factors, including: an An Post insurance partnership; a sponsorship arrangement with Team Ireland for the 2020 Olympics; enhancement of their websites; and an increased urban presence with new branches in Dublin, Cork and Limerick.

In terms of premium income, the group earned €371.5 million – a slight decrease from 2017’s income.

According to FBD: “Increases in commercial business were offset by reductions in agri and consumer [business] as we maintained our underwriting discipline in the face of strong competition.”

FBD highlights that new business volumes grew by 11%, primarily in personal lines, with retention rates generally holding up, thanks to “sustained efforts and customer initiatives”.

FBD also says that its reinsurance programme provided “strong protection”. After Storm Emma early last year, FBD reported a net cost after reinsurance of €6.6 million.

Net claims in 2018 came in at around €183.4 million, compared to €203.1 million in 2017.

“Our continued focus on underwriting discipline has delivered excellent underwriting profits for 2018,” said Fiona Muldoon, Group Chief Executive.

She added: “I am delighted the board has proposed to more than double the dividend to 50c/share on the back of such strong results, rewarding our loyal shareholders.”

The one blackspot on the books, according to FBD, is the annual return on investment of -0.5%, which the group says is “disappointing in challenged markets”.

“We will continue to maintain underwriting discipline in order to provide stability in our core market. FBD continues to offer the broadest cover available to farm customers for property damage and to mitigate the financial impact of tragic farm accidents,”added Muldoon.

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