Insurance group FBD has reported a fall in profits for the first half of the year, blaming the drop mainly on lower underwriting margins amid intense competition in the insurance market.
Operating profits in the period were €65.1m, down from €75.7m in the same period last year.
Pre-tax profits showed a bigger drop - from €157.4m to €49.7m. These were hit by a €12.5m negative investment return as stock and bond markets weakened, and by the inclusion of an €86m profit from a property sale in the first half of last year.
Chief executive Philip Fitzsimons said higher volumes of business had offset reductions in premiums. He said he expected full-year earnings to be in line with market expectations.
The value of insurance premiums written by FBD moved up marginally to €205.4m, with FBD describing the market as 'soft'. Charges for claims moved up from €108.6m to €122.7m, due to more weather and personal injury claims. The company called for more Government action to reduce accidents and claims costs..
Profits at FBD's leisure business, including Tower Hotels, doubled to €7.4m. Other financial services profits rose from €2.8m to €4.3m.
A 14.6% higher interim dividend of 27.5 cent will be paid. Shares in the company fell by €1.34 cent to €26.40 in Dublin this evening.
