FBD Holdings has recorded an increase in insurance revenue for the financial year 2023, seeing an increase of 6% to €401 million in its preliminary annual results.
Gross written premium – the sum of all money collected from customers for insurance premiums – increased 8% to €414 million in 2023, which FBD said was driven by strong growth in agri-insurance, including tractor and commercial business insurance.
The business’ over all profit before tax was recorded at €81 million. FBD proposes to pay a dividend of €1/share.
The combined operating ratio – which measures claim payouts and other expenses as a percentage of revenue – stood at 81%, which the business said is a result of “continued underwriting discipline” and a “favourable” prior year reserve development.
The insurers’ policy count increased by 2.6% in 2023, supported by a “strong retention rate” particularly in farm and business products.
The average premium increased by 5.4%, in large part due to an increased level of insurance coverage, which accounted for most of the increase in average premium.
FBD saw an investment portfolio return of 5.3% (€60 million), an income statement return of 1.7% (€19 million), and a return on other comprehensive income of 3.6% (€41 million).
€4 million of the business’ capital was allocated for share repurchase.
FBD said its solvency capital ratio is 213% after 2023, after ordinary dividend and share repurchase, compared to 226% at December 31, 2022.
The expense ratio to revenue “remained stable” in 2023 at 27.4% (27.3% in 2022), despite “inflationary pressure on employees, information technology (IT), and utility costs”.
Net asset value per share increased to 13.30/share in 2023, up from €12.76/share in the prior year.
Commenting on these results, FBD Holdings group chief executive Tomás Ó Midheach said that the business had seen a “robust year”.
“We are acutely conscious of the economic environment as inflation and interest rates increase costs with resultant impacts on our customers and our business… We maintained our strong retention rates of our existing valued customers, while also driving growth in new customer and policy count numbers,” Ó Midheach added.
In 2023, FBD Holdings provided €2.5 million in funding for The Padraig Walshe Centre for Sustainable Animal and Grassland Research at Teagasc Moorepark in Co. Cork.
Ó Midheach said this “demonstrated out commitment to sustainability”, and that the centre “will facilitate research that can provide innovative solutions to improve the environmental sustainability and efficiency of pasture-based systems”.