FBD Holdings PLC has reported a profit before tax of 18.9 million for the first six months of this year, compared to a figure of €22 million for the same period in 2021.

In its latest financial report, the group states that retention levels of existing business are at their highest level in five years.

The group reported an underwriting profit for the period of €34.5 million (2021: €13 million).

The Gross Written Premium (GWP) – which is the total premium (direct and assumed) written by an insurer before deductions for reinsurance and ceding commissions – was €193 million, an increase of 3.3% on the previous year.

The GWP figure excludes €5 million of Covid-19 pandemic-related premium rebates in 2021.

The diluted profit per share was 46c per ordinary share, compared to a profit of 53c per ordinary share in 2021, while the net asset value per ordinary share is 1,129c, compared to 1,338c/share at December 31, 2021.

FBD premiums

According to the accounts, average premium remained relatively flat across the portfolio. The private motor average premium reduced by 8.1% and commercial motor reduced by 3.3%, reflecting the expected reduction in claims costs as a result of
the new personal injury guidelines and an improvement in underlying claims experience.

Commercial business average premium increased 6.2% and farm average premium increased by 2.2%, as a result of increases in property elements as sums insured increased due to inflation in construction costs, according to the group.

The average tractor premium increased by 5% due to a higher proportion of newer tractors and the increasing value of existing tractors.

The increase in the home average premium was contained at 2.4% despite increasing sums insured due to inflation, according to FBD.


The report states that claims volumes overall increased 5% year-on-year and injury notifications increased in line with this.

Motor damage notifications increased in 2022 by 29% as traffic volumes have returned to pre-Covid-19 levels.

More policyholders have taken out comprehensive cover, and inflation on parts and labour is increasing the cost of repair which FBD believes is encouraging more people to claim, as opposed to paying for the repair outside of their insurance.

Excluding business interruption claims, property damage claims notifications are in line with the 2021 experience, according to the latest accounts.

The average cost of property claims increased by 17% due to a change in mix and inflation, with further inflation expected on domestic building costs.

Motor damage claims costs continue to experience high inflation with an increase of 12% in the last 12 months as costs of parts, paint and average labour hours per repair increase.

Changes to legislation

The financial report states that a number of legislative changes impacting insurance are expected to be enacted shortly including:

  • The next phase of the Motor Third Party Liability project (MTPL) will require sharing of additional data on insured vehicles and drivers with regulatory authorities;
  • The Road Traffic Act (RTA) legislation is to be extended to better regulate the use of scramblers/quads and e-bike/e-scooters and introduce legislation to require sharing of additional data on insured vehicles and drivers with regulatory authorities through MTPL;
  • Amendment to Occupiers Liability Act 1995 broadens the circumstances in which an occupier may be relieved of liability.

Tomás Ó’Midheach, FBD group chief executive, said: “I am pleased to report a profit for the first half of 2022. Our focus has been on driving value for our stakeholders and we have made positive progress against this.

“This is despite the difficult economic backdrop as investment volatility impacts our results. Investment markets had an exceptionally challenging first six months to the year, the increase in inflation and resultant higher interest rates is impacting our returns and reducing the valuation of the FBD bond portfolio.

“The personal injury guidelines appear to be having the desired effect of lowering costs for minor injury claims justifying the premium reductions given to our customers.

“We await the outcome of the remaining challenges to the guidelines and their application by the courts,” he added.

“A further hearing is scheduled in our business interruption test case in November 2022 to determine the quantification of partial losses in respect of the bar counter and the treatment of government subsidies,” he stated.