FBD, Ireland’s largest farm insurer, made profits of €112.5m last year, which is more than double the €50m in profits it made in 2018.

FBD said the surge in profits last year was down to benign weather conditions and strong returns on investment.

Profits from writing insurance (underwriting profit) increased by almost 50% last year to a very strong €93.7m.

The increase in profits comes despite a slight fall (-0.4%) in FBD’s gross written premiums to just over €370m. New business

However, the insurer said that it attracted 13% in new business last year and had a satisfactory retention rates of its existing customers, despite what it termed a “highly competitive” market.

FBD said it will pay a dividend of €1 per share back to its shareholders. This will see almost €35m returned to shareholders in a cash dividend.

Farmer Business Developments, as the largest shareholder in FBD with a 25% stake, will receive more than €8.5m in dividends.

Fiona Muldoon, CEO of FBD.

“Our FBD team has delivered a great result for 2019 due to our excellent customer service, our disciplined underwriting, some good luck with the weather, a rebound in investment markets and strong claims settlement activity.

"I am pleased to report that the Board proposes a dividend of 100c per share for our shareholders,” said FBD chief executive Fiona Muldoon.

Stabilisation

“We welcome the increasing stabilisation evident in court awards and resulting strong claims settlement activity in 2019. However, all consumers urgently need claims costs to come down through lower awards, lower legal and medical costs and the increased recognition of personal responsibility in injury cases. FBD continues to call for systemic reform to lower the cost of insurance for all,” she added.