FBD, the second largest insurer in the country, has warned that trading conditions in the Irish market “remain challenging in 2015”.

In an interim management statement, the insurer said market rates for both car and business insurance continues to harden, while home insurance rates remain weak.

Although economic growth will benefit FBD, the insurer said uncertainty in the claims environment will impact booked claims reserves and profitability.

The group added that no interim dividend will be declared in August, given the challenges in the claims environment, and a decision will be made on any final dividend once 2015 financial results are known.

FBD said it will forego volume growth in sectors of the market which have become unprofitable and does not anticipate an increase in market share this year.

The trading performance of its property and leisure joint venture is said to be on target and its joint venture with Taylor Wimpey, the UK residential developer with operations in Spain, continues to perform well.

Term deposits and fixed interest securities represent 91% of the company’s investment assets, higher than the 88% at year-end, as the group reduced its equity position.