Insurer FBD Holdings has reported a dip in pre-tax profits for the six months to the end of June as the average premium was flat across its portfolio.

FBD said its profit before tax came to €19m compared to €22m in 2021, while its gross written premium rose by 3.3% to €193m, excluding the impact of Covid-19 related rebates.

Average premiums were flat across the portfolio with private motor premiums down 8% on the same time last year.

The company also noted that retention levels of existing business are at their highest level in five years.

FDB said that the Personal Injury Guidelines appear to be having the desired effect of lowering costs for minor injury claims justifying the premium reductions given to its customers.

It also said that a Business Interruption hearing in the test case is scheduled for November to determine the quantification of partial losses in respect of the bar counter and the treatment of Government subsidies.

"The net best estimate in respect of Business Interruption reduced by €1m to €43m since year-end 2021," it added.

Net claims in the six month period reduced by €21.9m to €85.6m. Claims volumes overall increased 5% year on year and injury notifications increased in line with this.

FBD said that motor damage notifications increased in 2022 by 29% as traffic volumes have returned to pre-Covid levels.

It noted that more policyholders have taken out comprehensive cover and inflation on parts and labour is increasing the cost of repair which it believes is encouraging more people to claim as opposed to paying for the repair outside of their insurance.

Meanwhile, the average cost of property claims increased by 17% due to a change in mix and inflation, with further inflation expected on domestic building costs.

Tomás Ó'Midheach, the company's group chief executive, said its focus has been on driving value for its stakeholders and it has have made positive progress against this - despite the difficult economic backdrop as investment volatility impacts its results.

"Investment markets had an exceptionally challenging first six months to the year, the increase in inflation and resultant higher interest rates is impacting our returns and reducing the valuation of the FBD bond portfolio," the CEO said.

"Spreads have also widened which increased bond yields further. A positive side to this is the higher reinvestment yields that will now be available to us in the future," he added.

Shares in the company were lower in Dublin trade today.