FBD Holdings reported profit before tax of €74m for 2022, a drop of almost a third from 2021’s €110m. The insurer said a loss on investments of €90m drove the profit drop.

The investment loss arose due to the rapidly changing interest rate environment during 2022, which lead to reduced values in corporate and Government bonds.

There was better news on the insurance business side where the company said earnings were supported by benign weather conditions and a continued lower frequency of injury claims.

Premiums dropped for motor insurance customers while those for farms increased 2.6%. One of the largest rises was in premiums for tractors which increased 5.5% in the year.

Speaking to the Irish Farmers Journal, Tomás Ó Midheach, FBD’s group chief executive, said this jump was a function of “people buying more expensive tractors”.

The company said the increase in farm and home insurance premiums was mainly due to an adjustment to reflect the inflation of construction costs.

Speaking on the investment losses, Ó Midheach said re-investments of maturing bonds would mean better returns in future. The company has made some small changes to its investment strategy to better take advantage of the changed environment.

The CEO also said FBD is looking at the carbon intensity of its investment portfolio. The company will also work closely with farmers who are making changes to their businesses to meet climate targets. He added that FBD is actively seeking an education or advocacy project to back to help increase awareness on climate issues.

FBD proposed a dividend per share for the year of €1, unchanged from 2021. During 2022, shares in FBD performed well, rising from €7.34 to €11.05.

The insurer still is waiting for a court ruling to allow it to finally settle all outstanding claims arising from COVID business interruption.