FBD Holdings PLC has reported a pre-tax loss of €4.5m for 2014. This compares to a pre-tax profit in 2013 of €52.6m. The insurance group is blaming bad weather and a “severe deterioration in the claims environment”.

Andrew Langford, Group Chief Executive, today said “2014 was a very difficult year for the Irish insurance industry and for FBD.

Gross premium written increased 3.6% to €363.7m. This growth was rate led while FBD also marginally increased its market share from 13.6% to 13.7%. The increased rates were achieved across all customer segments. The increase in rates, did not impact quickly enough to match the sharp increase in claims experienced during the year.

Profitability was impacted by the worst weather in the group’s history, an increase in claims frequency associated with economic growth, poor large claims experience and adverse development of some prior year injury claims. FBD’s loss ratio increased from 67.9% to 86.0%.

Investment return was 3.1%. The board is recommending a final dividend of 34 cent per share, bringing the full year dividend to 51 cent per share, an increase of 4.1%.

Langford said, "Our focus for 2015 is on ensuring that we continue to support our customers when they need us, while ensuring that our business model remains robust and delivers a return for shareholders. FBD has taken significant, targeted actions to return to profitability".

The Group is guiding 2015 operating earnings per share of between 20 cent and 40 cent, subject to no exceptional claims events arising.