FBD Holdings told shareholders at its AGM today that it was well placed to take advantage of an expected rise in insurance premiums this year.
'Indications are that premium rates will harden during the remainder of the year. Our recent investment in people and infrastructure leaves us well positioned to take advantage of such market conditions,' Chairman Michael Berkery said at the meeting today in Dublin.
The FBD chairman said it expected the downward price trend in the market to reverse, adding that gross premiums written to date this year continued to be in line with the same time in 2007.
Mr Berkery said financial market turbulence in 2008 had had an impact on profit before tax. 'This was greatly mitigated by the group's decision to reduce its exposure to equities during 2007,' he said.
He said 2007's 'challenging' market conditions had continued into 2008.
Mr Berkery said that results to date for its Internet-based 'No Nonsense' car insurance brand, launched in February with Ryanair had been 'encouraging'.
He also told the AGM that he was not surprised by yesterday's withdrawal of a proposal for FBD by Netherlands' biggest insurer Eureko.
'Our considered analysis of their approach failed to identify any commercial, strategic or financial logic in their proposal and consequently would not have been in the interests of shareholders,' he said.
Eureko already owns life and pensions group Friends First. It was said to be proposing a merger of FBD and Friends First, floating the combined company on the Irish Stock Exchange.
FBD shares closed down €2.62 at €27.88 in Dublin.
