Insurance group Hibernian today said that annual group operating profit increased to €224m for 2003, up 8% on the previous year.
The group said that for the year ended December 2003 the operating profit figure in general insurance increased to €130.5m, ahead of the 2002 figure of €71.1m.
In the Life and Pensions sector, operating profits were €93.2m. This was €26m lower than the previous year reflecting a 29% fall in new business. The group attributed the decline to sales of SSIAs - which closed in 2002 - and lower investor confidence, particularly in single premium sales.
Gross premium income for the year ended 2003 was €1.6 billion, down from €1.71 billion recorded in 2002. Funds under management were up to €7.7 billion in 2003 from €6.7 billion the previous year.
Hibernian, which is part of Britain's largest insurer Aviva, said that the reduction in motor insurance claims over the past year has allowed it to cut premiums by an average 10%, with further cuts forecast.
'The year under review was most notable for the determined and sustained approach towards reducing the cost of general insurance cover' said Bryan Jenkins, group chief executive.
'It is clear that Government led initiatives, combined with our own actions, have led to a reduction in claims. In motor insurance we have seen aggregate reductions of over 10% in premium rates,' he said.
'If the momentum created by the insurance reform agenda, spearheaded by the Motor Insurance Advisory Board, is maintained, customers should see this reflected in the cost of their general insurance', he added.
Hibernian said that the reduction in claims has allowed it to increase to 25,000 the number of places on its Ignition inexperienced driver training scheme, where insurance savings of up to 50% can be achieved.
'It is hoped that ongoing efforts to change the environment in which insurers operate, including the introduction of the PIAB and more stringent enforcement of road safety legislation, will see a continued downward trend in both claims and the associated legal costs,' said Jenkins.
'This will enable Hibernian to continue to reduce customers' insurance premiums in 2004, and to pursue the development of new and innovative measures to reduce risk," he added.
