Insurance firm FBD Holdings said its operating profit for the year ended December 2001 increased by 8.3% to €30.2 million. At the pre-tax level, profits fell from €40.4m to €28.7m because of negative investment return.
Operating earnings per share increased from 54.75 cent to 59.59 cents - an increase of 8.8% as all the group's business divisions contributed to its 'strong' financial performance.
The company said that despite the collapse of the Independent Insurance Company, its general insurance and life assurance brokerages continued to perform well with a contribution of €2.5 million to group profits.
Gross premiums at FBD's insurance underwriting operations increased by almost 21% to €248 million. However, the underlying underwriting result saw losses of €15.1 million - up from €13.7 million in 2000.
The company said that the increased Motor Insurances' Bureau of Ireland cost of uninsured drivers impacted greatly on the motor losses which amounted to €22.3 million. The MIBI charge for the year equated to €112 per car policyholder.
FBD said its property/hotels/golf interests in both Ireland and abroad contributed €10.1 million to operating profits in 2001.
FBD said the US attacks on September 11 had serious repercussions on insurance costs and terms for customers. It said its position as the only major Irish controlled insurance company in the domestic market enabled it to deal with the situation in a more benign and independent manner than its competitors.
It said that trading in the year to date continues to be buoyant throughout the group.
FBD shares closed up five cent to five euro in Dublin.
