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For the first six months of 2018, FBD made a profit from writing insurance of €18.9m, up 70% compared with the first six months of 2017, according to statements released this morning.
Profit before tax at FBD Insurance rose 55% to €18.4m for the same period. The company said that “careful growth and disciplined underwriting” delivered the underwriting profits.
The combined operating ratio, which is a measure of profitability (where anything below 100% delivers a profit) fell from 93.1% (first half 2017) to 88.6% for the first six months of this year. Premiums written increased 1% to €192m, driven by a 16% increase in new business volumes compared to the same period last year. Storm Emma cost the company €6.6m net of reinsurance costs.
Fiona Muldoon, group chief executive, said: “This is a very strong set of results for the first half of 2018, particularly in the context of a major snow storm in March.” She added: “We are pleased with our new business levels and we continue to build our business in farm, commercial and consumer through our quality products and our direct relationships with our customers.”
She said that the cost of injury claims remains a challenge for customers and called on the Government to provide a lower cost, sustainable claims environment for the benefit of all insurance customers, particularly Irish businesses.
Investigations
Just over a month ago, FBD released a statement to the Irish stock exchange stating that it had launched an investigation into internal allegations made against its chief executive, Fiona Muldoon.
In the release today, the group said the process is currently ongoing and that it is working to bring it to a conclusion and at this time had no further update.
The group recorded a prior year reserve development of €6m. Last week, FBD opened its second branch in Dublin - on Baggot Street. Total investment return (annualised) fell from 0.7% in 2017 to -0.4% this year. The expense ratio increased 2.7% to 25.3%, primarily as a result of the one-off impact in 2017 of the closure of the property reinsurance surplus treaty.
The group’s financial services operations delivered a profit before tax of €1.4m for the period - down from €1.8m for the same period in 2017.
Shares in the company have increased 23% over the last 12 months and touched off €13 in March. They have since fallen and closed at €10.35 on Tuesday.
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