Insurer FBD says it expects to cut its premiums further in some areas in the coming year. But it says much will depend on the impact of the new Personal Injuries Assessment Board.
Chief executive Philip Fitzsimons said a turnaround in underwriting performance last year enabled premium cuts of €30m to be passed on to customers. He said the favourable trend looked set to continue, and customers could look forward to further premium savings.
The return to underwriting profit led to a sharp increase in pre-tax profits at the company last year to €104.5m, compared with €25.2m in 2002.
Earnings per share jumped to 227.38 cent and a final dividend of 17 cent has been recommended, giving a total of 27.6 cent. Turnover rose from €421.6m to €500.5m.
Underwriting profit was €59.3m, following a €5.3m loss in 2002. The turnaround was particularly dramatic in motor and liability insurance. Motor profits were €22m, following a €10m loss in 2002, while liability profits were €10.4m, compared with a €13.9m loss the previous year.
Claims fell from €220.5m to €194.1m. FBD attributed this to reform measures brought in by the industry, Government, business and consumers.
Profits at FBD's property and hotel division rose from €8.9m to €12.6m. Shares in the company closed 40 cent higher at €14.90 in Dublin this evening.
