Insurance group FBD Holdings has maintained its 'solid' trading performance and is seeing strong operating profits so far in the second half of the year - despite the difficult market environment.
In an interim management statement, the company said it had traded ahead of the previous year and modestly ahead of expectations, mainly as a result of an improved underwriting performance in the last few months.
FBD said that premium rates have continued to 'harden' in the Irish insurance market, especially for home and business insurance. In line with the country's economic activity, it said its insurable risk and values have continued to decline.
The company said that rate increases have been necessary to provide the industry with an adequate return of capital, particularly after the unprecedented severe weather claims after the flooding and big freeze last winter.
FBD said its property and leisure businesses in Ireland and Spain have managed to deliver operating operating profits in the second half of the year so far in what it called very challenging market conditions.
It said that oversupply in the marketplace is the key challenge facing the property and leisure businesses here, but added that sales in its La Cala development in Spain continue to beat expectations.
The company said that unless exceptional claims events happen during the rest of the year, it is confident that it will deliver full year 2010 operating earnings per share of 105-110 cent per share.
'The group expects to deliver operating profits in both its underwriting and non-underwriting businesses in 2010 and is confident that it is well positioned to deliver profitable growth and superior returns to shareholders in the future,' the statement said.
FBD said it was also encouraged by the introduction of a nationwide network of speed cameras this week and said it would continue to increase its penetration of key urban markets, especially in Dublin.
FBD shares closed up 5.2% at €6.07 in Dublin.
