Insurance group FBD Holdings has reported higher profits and positive investment returns for 2023 and said the economic outlook for 2024 is positive with more modest growth expectations.
FBD said its pre-tax profit for the 12 months to the end of 2023 rose by over 23% to €81.m from €65.84 in 2022 while its insurance revenue rose by 5.6% higher to €401.0m from €379.7m in 2022.
It noted that gross written premium is the largest part of insurance revenue and is 8.1% higher than 2022 at €413.6m mainly on the back of its Farmer and Business customers, with strong growth in Agri including tractor, commercial business and home products.
Written policy count increased by 2.6% supported by a strong retention rate, particularly in Farm and Business products, it added.
FBD Holdings has proposed a dividend of 100 cent per share for the year.
The company, which is listed in both Dublin and London, said today that trading on the London Stock Exchange as a percentage of overall trading volume in the company's ordinary shares has significantly reduced over recent years.
Consequently, the Board of FBD is now considering the merits and costs of retaining its listing on the London Stock Exchange and if simplification of the listing structures would be beneficial for FBD.
"The company has a primary listing on the regulated market of Euronext Dublin which offers shareholders the highest standard of protection, including compliance with the UK Corporate Governance Code," it added.
FBD noted that inflation continues to impact materials and labour costs in the motor and the construction industries which has a knock-on effect on claims costs.
"There is a risk of continually increasing settlement costs in future years and potentially higher injury claims costs in the near future as pressure mounts on salary inflation," it added.
Tomás Ó Midheach, FBD's group chief executive, said that building on its successful approach to date to drive measured profitable growth, the company announced a robust result for 2023.
"This was achieved as a result of strong returns from our business activities, underpinned by our underwriting discipline. In addition, the result was enhanced by favourable prior year reserve development," the CEO said,
He said the company was acutely conscious of the economic environment as inflation and interest rates increase costs with resultant impacts on its customers and business.
"FBD strives to ensure that our customers remain with us for the service they receive and requires us to work with our customers to ensure they have appropriate cover," he said.
"We maintained our strong retention rates of our existing valued customers, while also driving growth in new customer and policy count numbers. Both of these performance factors are focused on meeting the needs of our customers through the provision of a personalised service nationwide," he added.
Shares in the company were lower in Dublin trade today.
