Insurance group FBD has reported an improved performance for 2010, with operating profits rising and pre-tax losses narrowing compared with 2009.
But it warned that further increases in premiums in the insurance market would be needed this year because of weather-related events. A spokesman for FBD said it had been gradually increasing rates since 2008, but had no plans for more rises at the moment.
FBD's trading profit rose by 41% to €40.7m, while the value of insurance premiums written edged up 0.3% to €358.4m, the first increase since 2007. Operating profit in the underwriting business rose 61% to €36.1m, but a €30m fall in the value of investments and a €19.8m writedown in the value of property, plant and equipment led to the pre-tax loss.
Chief executive Andrew Langford said 2010 was a tough year for the Irish economy and insurance sector. He said the severe weather in December and January 'partially masked' the benefit to the company of rate increases and underwriting discipline.
FBD said that over a 14-month period, it paid out €90m to 14,000 customers linked to severe flooding and freezing weather.
Net claims incurred fell by 11% to €234.3m, as non-weather related claims - including motor injury claims - fell.
Non-underwriting businesses - including hotels and property - generated a profit of €4.5m, down from €6.5m in 2009. The fall was blamed mainly on oversupply in the Irish hotel market.
FBD said the opportunity for growth in premium income in 2011 would be limited due to the weak Irish economy, but it was confident that underwriting discipline and cost control would lead to improved profits.
The company is proposing a final dividend of 21 cent per share.
FBD shares closed 2.5% lower at €7.55 in Dublin this evening.
Insurance Institute of Ireland appoints new CEO
The Insurance Institute of Ireland has appointed Eamon Shackleton as its new chief executive.
Eamon takes on this position having previously served as the Institute's chief operating officer for the past year.
Eamon is a former member of the executive team of the Irish Music Rights Organisation (IMRO) and held a number of senior management positions for companies based in The US and the Middle East.
The Insurance Institute of Ireland is the national body for insurance professionals in Ireland and has 14,000 members.
