FBD’s profits before tax soar by over €62 million for 2019
FBD Holdings PLC has announced a net profit before tax of €112.5 million for 2019 compared to €50.1 million in 2018.
However, the Irish insurance company outlined that the 2018 figure included €11.8 million in “exceptional loss on the Fairfax Bond buy back”.
In its preliminary results, released this morning, Thursday, February 27, FBD also noted a proposed dividend of €1 (100c) per share.
- Full year return on equity of 30%;
- Combined Operating Ratio (COR) of 72%, driven by strong current year COR of 84% and positive prior year claims reserve development of €40 million;
- Gross Written Premium (GWP) of €370 million;
- Average premiums down by 2.2%, with motor premiums down 4.2% and farm down 2.5%;
- Total investment return – 2.7%.
Commenting on the results, Fiona Muldoon, the group’s chief executive, said: “Our FBD team has delivered a great result for 2019 due to our excellent customer service, our disciplined underwriting, some good luck with the weather, a rebound in investment markets and strong claims settlement activity.
I am pleased to report that the board proposes a dividend of 100c per share for our shareholders.
“We welcome the increasing stabilisation evident in court awards and resulting strong claims settlement activity in 2019.
“However, all consumers urgently need claims costs to come down through lower awards, lower legal and medical costs and the increased recognition of personal responsibility in injury cases.
FBD continues to call for systemic reform to lower the cost of insurance for all.
“FBD’s strong out-turn for 2019 has been built from sound underwriting and risk selection decisions over the last few years and I am delighted to see those benefits come through so strongly.”
Concluding, Muldoon said: “I would like to take this opportunity to thank all of my colleagues who delivered this result and to wish our loyal customers and shareholders every success for 2020 and beyond.”