The Irish general, non-life insurance industry recorded underwriting profits of more than €689m last year, representing an increase of 65% on 2003, according to the Financial Regulator's Insurance Statistical Review for 2004.
The Irish motor insurance market recorded profits of €330m, up 55% on 2003, while the liability sector's profits were €64m.
But according to the report, the volume of business written by Irish non-life insurance companies fell by 1.6% last year, with motor insurance falling by 10% and liability down 6%.
The overall insurance market which includes national and foreign insurance companies registered here, did almost €27 billion worth of business last year, up 22% on 2003.
Life assurance, which accounts for more than 70% of the sector, grew by 33% in 2004.
The Irish Insurance Federation said the strong results are good news for consumers, as the improvement in the sector has led to significant reductions in premiums, particularly in motor insurance, where premiums are at 1999 levels.
But the Consumers' Association of Ireland said the insurance industry had not given back to consumers what it had taken over the last five years and the profit figure was evidence of this.
The review breaks down the type of insurance by class and this shows that motor insurance represented 39.75% of the market in 2004 compared to 43.47% in 2003, liability dropped slightly to 21.1% from 22.06% and fire and damage to property insurance represented 26.18% of the total market compared to 26.57% in 2003.
