Following the improvement in the financial performance of the business, the board of FBD proposes to pay a dividend of 24c/share for the 2017 financial year.

The return to a dividend payment marks a major milestone in the turnaround of FBD and reflects the company’s confidence in the profitability and future prospects of the business.

The insurer made a net profit before tax of €50m in 2017, compared to €11m in 2016. Gross written premiums increased 3% to €372m.

This increase was mainly driven by farm, business and private motor products of €11.6m, offset by a €0.9m reduction in broker business.

Moderate rate increases were carried across the book.

New business volumes grew 12% largely in commercial, private motor and farm. Net claims incurred amounted to €203m – down from €228m in 2016.

Storm Ophelia

The combined operating ratio, which is the measure of profitability in the sector, improved from 99% in 2016 to 86% last year.

The company said that Storm Ophelia, which arrived in October, cost the insurer €5.4m net of reinsurance.

The insurer received almost 2,200 claims with an approximate cost of €10-11m. The company made a total of 1.2% on its investments - down from 1.9% in 2016.

Commenting on the results, Fiona Muldoon, FBD CEO said: “FBD has had an excellent year. After three years of hard work and corrective action, my colleagues and I have delivered a strong underwriting profit for the year”

Shares in FBD are up almost 30% in the past year

Muldoon added that FBD’s target return on equity is a full 12 months ahead of schedule. She said FBD has displayed “exceptional resilience” and is “now well positioned to build on our loyal customer base”.

The dividend payout is equivalent to a pay-out ratio of approximately 20% in respect of 2017 profits. FBD has set itself a target of an annual 20% to 50% pay-out range of full year profits when appropriate.

The dividend is subject to the approval of shareholders at the AGM in May.

Shares in FBD are up almost 30% in the past year and closed at €10.45 on Monday.

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