FBD Holdings has reported a major jump in half-year pre-tax profits to €39.5 million for 2023 compared to corresponding results of €2.5 million for 2022.
The insurance group, which was established in the 1960s by farmers, also reported a 4.5% jump in insurance revenue to €195.5 million for the six months to June 2023.
Gross written premium, the largest part of insurance revenue, was 7.3% higher than 2022 levels at €206.4 million and the group reported strong increases in home, agri and commercial
business.
It said that average premium increased by 4.6% across the portfolio, “reflecting the inflationary impacts from the economic environment”.
According to FBD, farm premiums increased by 5.0% as a result of “increases in property elements as sums insured increased due to inflation in construction costs”.
Average tractor premiums also increased by 8.8% “due to a higher proportion of newer tractors, increasing value of existing tractors and inflation in the cost of motor damage claims”.
Meanwhile, average insurance for private motos increased by 1.7% and commercial motor insurance increased by 0.7%, which FBD said reflects “the increasing cost of motor damage claims”.
The insurer also highlighted in its latest half-year report that retention levels of existing business had increased by 0.2% year on year.
FBD shareholders
The group, one of Ireland’s largest locally owned insurers, confirmed today (Friday, August 11) that shareholders in FBD will benefit from a special dividend of 100c per ordinary share to be paid in October.
According to Tomás O’Midheach, FBD’s chief executive officer, the latest set of results reflect a “strong profit for the first half of 2023”.
“It is most encouraging to see strong retention of existing customers and continued growth in both customer and policy count numbers,” O’Midheach said.
He also welcomed the final judgement on the “business interruption” test case – which related to test cases taken by publicans against FBD on business interruption due to Covid-19.
“This ruling allows us to finalise all valid Covid-19-related claims and state subsidies,” the FBD chief executive said.
The group’s estimates for Covid-19-related business interruption has reduced by €15 million to €27 million.
But O’Midheach also warned today that economic conditions “remain challenging for businesses and customers alike”.
He said that inflation “continues to be experienced” in property and motor damage claims but he also acknowledged that injury claims have been “benign” so far in 2023 and there have been “no significant weather events” in Ireland.