FBD WARNS PREMIUMS WILL RISE - Ireland's largest domestically-owned insurer, FBD, has issued its results for 2010 with a promise to its customers that their premiums will increase again or further this year on account of the recent bad weather.
The company says it had its first increase in premium incomes since 2007, but says bad weather in January and December cancelled out some of the benefit of rate increases last year, lower costs and proactive claims management.
FBD also says it has increased its market share and has become more selective about who to insure and what to charge.
Davy analyst Emer Lang says that in 2009, the insurance industry incurred net losses on household insurance. She says insurance rates were up 15% last year, but this had only a modest impact on the previous year's losses.
The analyst says there has been no industry data so far on the impact of freezing weather late last year, but it is likely that this is still affecting insurers financially. She says there are calls for premium rates to go up by double-digit percentage amounts, probably 'low to mid-teens'.
But Ms Lang says the motor insurance sector was more positive, with initiatives such as new speed cameras having a positive impact. She says this means increases in this area are likely to be more modest.
The Davy analyst says FBD has increased its market share - helped by growth in urban areas - and its results are strong overall.
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NEWS IN BRIEF AND CURRENCIES - Members of the Organisation of Petroleum Exporting Countries are holding consultations over the oil market in light of the Libyan turmoil, the Kuwaiti oil minister said today.
Crude oil prices surged on Monday as traders worried about escalating clashes in Libya between forces loyal to leader Moamer Gadaffi and rebels seeking to end his four-decade rule.
On the currency markets, the euro is worth $1.3948 and 86.25p sterling.
