Ireland’s largest farm insurer, FBD, delivered an overall profit of €50m last year, up from €49.7m in 2017.
Profits from writing insurance (underwriting profit) increased by a strong 41% to reach €63.4m. This is after a €6.6m net cost from last year’s extreme weather event, Storm Emma.
The increase in profits was recorded despite gross written premiums falling by €1m to €371.5m last year. The insurer said “strong competition in all customer segments” resulted in a decrease and “increases in commercial business were offset by reductions in agri and consumer”.
FBD said it grew new business volumes by 11%, mainly in personal lines. It also said retention rates generally held up across the book with the aid of sustained efforts and customer initiatives.
Lower claims cost
The overall cost of claims fell by almost 10% to €183.4m. Almost €27m came in from reserves for claims in years 2015 to 2017 due to improvements relative to previous expectations.
Commenting on these results, group chief executive Fiona Muldoon said: “Our continued focus on underwriting discipline has delivered excellent underwriting profits for 2018. I am delighted the board has proposed to more than double the dividend to 50c per share on the back of such strong results, rewarding our loyal shareholders.”
Minister for Agriculture, Food and the Marine Michael Creed and Fiona Muldoon, FBD, at the launch of the Guild of Agricultural Journalists' Bull award. \ Ramona Farrelly
She continued that “the successful purchase and cancellation of the Fairfax convertible bond in October demonstrated the financial strength of FBD”.
Underwriting expenses
Underwriting expenses increased 10% to €84.1m, with €4.6m of the increase relating to changes in improved reinsurance arrangements. The balance reflects additional IT spend in respect of work for the introduction of GDPR, wage inflation and increased regulatory costs. FBD's combined operating ratio was 81.2%, an improvement from 86% in 2017.
FBD's total investment return for 2018 was -0.5%, down from 1.2%. The group's financial services operations delivered a profit before tax of €2.5m for the year, down from €4.5m in 2017. Holding company costs increased from €1.4m to €3.5m, primarily due to significant legal expenses during 2018 and higher allocated salary costs than in the prior year.
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Ireland’s largest farm insurer, FBD, delivered an overall profit of €50m last year, up from €49.7m in 2017.
Profits from writing insurance (underwriting profit) increased by a strong 41% to reach €63.4m. This is after a €6.6m net cost from last year’s extreme weather event, Storm Emma.
The increase in profits was recorded despite gross written premiums falling by €1m to €371.5m last year. The insurer said “strong competition in all customer segments” resulted in a decrease and “increases in commercial business were offset by reductions in agri and consumer”.
FBD said it grew new business volumes by 11%, mainly in personal lines. It also said retention rates generally held up across the book with the aid of sustained efforts and customer initiatives.
Lower claims cost
The overall cost of claims fell by almost 10% to €183.4m. Almost €27m came in from reserves for claims in years 2015 to 2017 due to improvements relative to previous expectations.
Commenting on these results, group chief executive Fiona Muldoon said: “Our continued focus on underwriting discipline has delivered excellent underwriting profits for 2018. I am delighted the board has proposed to more than double the dividend to 50c per share on the back of such strong results, rewarding our loyal shareholders.”
Minister for Agriculture, Food and the Marine Michael Creed and Fiona Muldoon, FBD, at the launch of the Guild of Agricultural Journalists' Bull award. \ Ramona Farrelly
She continued that “the successful purchase and cancellation of the Fairfax convertible bond in October demonstrated the financial strength of FBD”.
Underwriting expenses
Underwriting expenses increased 10% to €84.1m, with €4.6m of the increase relating to changes in improved reinsurance arrangements. The balance reflects additional IT spend in respect of work for the introduction of GDPR, wage inflation and increased regulatory costs. FBD's combined operating ratio was 81.2%, an improvement from 86% in 2017.
FBD's total investment return for 2018 was -0.5%, down from 1.2%. The group's financial services operations delivered a profit before tax of €2.5m for the year, down from €4.5m in 2017. Holding company costs increased from €1.4m to €3.5m, primarily due to significant legal expenses during 2018 and higher allocated salary costs than in the prior year.
Read more
Associated Livestock Marts and FBD partner up on mart insurance
Former Aviva CEO Dermot Browne to step down from FBD board
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