FBD Holdings reported first-half pre-tax profit of €39m, compared to €3m in the first half of 2022. Revenue increase 4.5% to €195m, and the company reduced its estimate for Covid business interruption by €15m to €27m.
While the average premium written by FBD increased by 4.6%, there were major differences across sectors. The very competitive motor policy space saw an increase of 1.7% on average, contracting with tractor insurance policies, which increased by 8.8%.
Home insurance premiums increased by 9.5% while farm average premium rose 5%, which FBD said reflected higher construction costs.
Tomás Ó Midheach, group chief executive, welcomed the results saying that "the business continued to grow and deliver
for all stakeholders".
While he said that economic conditions remained challenging, injury claims over the period were benign and there had been no major weather events.
He also said that the final judgement in the business interruption case allowed the insurer to finalise costs related to the pandemic.
On the investment side, the insurer managed to make a positive return on its portfolio, as bond maturities were reinvested at higher interest rates. This is gradually increasing the income earned through these portfolios. Risk assets in general posted positive returns in the first half of the year, FBD said.
A special dividend of 100c/ordinary share, which was signaled earlier this year, was approved by the board.
FBD shares were trading at €13.00, a 2% gain, by 9:30 a.m.