Insurer FBD has reported pre-tax profits of €135m for last year, compared with €106.5m in 2003.
Chief executive Philip Fitzsimons said the company would make further cuts in insurance premiums in a number of areas 'in the near future', adding that further cuts would depend on the implementation of the recommendations of the Motor Insurance Advisory Report.
Operating profits rose from €115.7m to €126m and earnings per share climbed by 8.7% to 258.84 cent. A final dividend of 27.28 cent has been declared, giving a 45% higher total of 40 cent. The results were helped by the upturn in stock markets, with a positive investment return of €12m following a €5.9m loss the previous year.
Turnover fell from €500.5m to €471.9m, as the value of insurance premiums written fell by 4.6% to €351.5m. FBD said this was due to price cuts and discounts, adding that it masked strong growth in policy numbers.
Claims costs increased by 2.5% to €199m, with the floods in October affecting the property business. The underwriting profit rose by €3.7m to €64.7m.
Profits at FBD's property and leisure division fell slightly to €14.5m, as hotel and golf visitor numbers were lower. Profits at the financial service business also dropped slightly to €4.2m.
Shares in the company closed 45 cent higher at €20.90 in Dublin this evening.
* FBD Holdings said this evening that it has bought back 4.2 million of the 9.3 million shares placed by KBC today.
FBD said it had decided on the buy-back in the light of the purchase price and the positive impact the buy-back will have on earnings per share.
The company said that of the 4.2 million shares bought back by it, 2.7 million will be cancelled and 1.5 million will be held as treasury shares to meet outstanding share options as they come to be exercised.
