Insurance company FBD Holdings says that operating profits in its underwriting operations are ahead of the previous year and in line with expectations.
In a trading update ahead of its AGM today, the company said that unless exceptional claims events occur this year, it is confident it can meet its earnings targets of 130-140 cent per share.
FBD said that during the first three months of the year, the benefits of higher rates in the Irish insurance market were offset by the continuing reduction in insurance risk and values. It said this was in line with economic activity in Ireland.
The company said that premium rates for home insurance continued to rise, while motor insurance premiums were flat for the first quarter. It added that the frequency of property and motor claims fell further for the three month period.
FBD said that the property and leisure markets in both Ireland and Spain remained 'challenging'. However, it said the operating performance of the businesses were ahead of both last year and its own expectations.
It added the Irish hotel market saw increases in average room rates charged the same time last year.
'The directors expect that underwriting discipline and cost containment will deliver improved underwriting profitability in 2011,' the trading statement said.
'Building on the progress recorded in the first quarter, the board is confident of an improved contribution from the group's non-underwriting business for the full year,' it added.
