In the first half of 2022, FBD recorded a profit before tax of €39.5m, a significant increase compared to the €2.5m reported in the same period last year. The boost in profit can be attributed to stronger insurance revenue, reduced insurance service expenses, and positive investment returns.
Last year, the insurer experienced investment losses of €15.2 in the first half of the year due to market volatility and rising interest rates. However, in the first six months of 2022, investment returns amounted to €8.4m.
FBD’s insurance revenue grew by 4.5pc to reach €195m in the first half of the year. Additionally, the company approved a special dividend of 100 cent per ordinary share to reward its shareholders.
The gross written premiums for FBD in the first half of 2022 reached €206m, a 7.3pc increase compared to the previous year. The company also saw a 2.6pc rise in policy count, with 70pc of the growth coming from local offices. However, the average premium across the portfolio increased by 4.6pc due to inflation.
The average private motor premium rose by 1.7pc, mainly driven by increasing claims costs for labor, parts, and paint, especially for newer vehicles. Gross incurred claims increased by €4.5m to €115m due to cost inflation and more frequent property and motor damage. Injury claims also rose by 4pc year-on-year, but the average claims settlement decreased by 5pc.
Motor damage claims increased by 17pc as traffic volumes returned to pre-pandemic levels, resulting in an 11pc rise in settlement costs. The average cost of property claims also grew by 7pc.
FBD has reduced its net best estimate related to the Covid-19 Business Interruption by €15m to €27m since the end of 2022. The final judgement in the test case has provided more certainty on losses, allowing the company to finalize all valid Covid-19 related claims and State subsidies.
FBD’s CEO, Tomás Ó Midheach, expressed support for the government’s efforts on insurance reform to reduce claims costs and subsequent insurance premiums. He also highlighted the increased acceptance rates of awards from the Personal Injuries Resolution Board, indicating the adoption of Personal Injury Guidelines, although the ultimate impact will only be known when challenges make their way through the courts.
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