Insurance group FBD Holdings has reported pre-tax profits of €20.5m for the first half of this year, following a loss of €7.9m in the same period last year.
Operating profits jumped by more than 150% to €28.7m, with increased contributions from its underwriting and non-underwriting businesses. A lower level of writedowns boosted the pre-tax profit figure.
The interim dividend is to be raised from 10.5 cent to 11.25 cent.
The group has also announced plans for a joint venture with Farmer Business Developments plc, which owns 29.7% of the voting rights in FBD Holdings, to own and manage its Irish and Spanish property and leisure businesses.
Chief executive Andrew Langford said this would allow FBD to focus on its core insurance business and reduce its exposure to fluctuations in property values.
The insurance underwriting business made a profit of €10.7m in the six months, following a €7.8m loss a year earlier. Gross premium written was down 3% to €177.5m. FBD said property insurance rates were rising, but strong competition was limiting the impact of rises in motor insurance.
The group said the average cost of property and motor insurance claims fell, while the impact of severe weather was €2.5m, compared with €12m for the freezing weather a year earlier.
FBD said, however, that opportunities to increase insurance revenue in the rest of 2011 would be limited, as Irish domestic demand continued to decline. It said it would focus on controlling costs and managing claims.
Non-underwriting profits - which include its property and leisure businesses - rose from €1.9m to €2.2m.
Shares in the company gained 4.1% to close at €6.35 in Dublin this evening.
