Insurance group FBD has reported a pre-tax loss and a drop in operating profits for the first half of this year.
Operating profits fell to €40.7m from €65.1m a year earlier, mainly due to lower underwriting margins. Pre-tax losses were €5.2m, compared with a profit of almost €50m a year earlier, as the value of its investments was hit by stock market weakness.
FBD has also warned that the flooding of recent weeks will affect its second-half figures, and full-year earnings will be 'marginally below' current expectations.
The value of insurance premiums was marginally down on H1 2007 at €198.3m. The group increased its prices on some products, but said some rivals were competing for business at 'uneconomic' rates. Underwriting profits fell from €53.7m to €35.9m.
Profits from non-insurance areas - property, hotels and financial services - more than halved to €4.8m, hit by the weaker property markets and volatility in financial markets.
A 10% higher interim dividend of 30.25 cent will be paid. FBD has also decided to return €1.50 per share to shareholders - a total of almost €50m. This will be paid along with the interim dividend.
FBD shares closed 80 cent lower at €14.40 in Dublin this evening.
