FBD Holdings returned to profit for the first half of 2021, posting a €22m profit on gross written premiums (GWP) of €181.4m before tax, compared with a loss of €9m on €176.2m of GWP for the same period in 2020.

However, when €5m of pandemic-related rebates are included, GWP is down 1%. The number of policies increased by 1.4%.

These results include a provision of €13m for consequential payments, following the ruling by the Financial Services and Pensions Ombudsman on business interruption and FBD has marginally increased its estimate for the ultimate cost of public house claims for business interruption to €67m.

Benign weather

FBD’s investment portfolio delivered €5m of the profits and the business was also assisted by relatively benign weather, meaning fewer weather damage-related claims.

While average motor insurance premiums have fallen by 5.7%, business insurance reduced by 8% and there was an 11% fall in commercial vehicle premiums.

However, tractor insurance increased by 3.8% because of larger tractors being insured, according to FBD, while overall farm premiums fell by an average of 1.2%.

FBD had reduced claims of €9.5m for the first half of 2021 at €107.5m, compared with €117m for the same period in 2020.

The big feature here was that business interruption claims amounted to €30m in the first half of 2020, compared to just €2.1m for this year.