Axa Ireland, the largest general insurer on the island, saw its net profit rise 15 per cent last year to €112.7 million, as its claims losses declined and customer numbers and investment income grew, even as average motor premiums dipped.
The French-owned insurer also revealed in its latest annual report, filed this week with the Companies Registration Office (CRO) that it paid a €30 million dividend to its parent, its first such payment since 2018. The accounts, signed on April 1st, also said that the company was planning to pay a further dividend of €100 million that day.
Gross written premiums rose by 5 per cent to €952.9 million last year, which was “attributable to an increase in customer numbers offset by falling average motor premium levels, which have reduced during the year in response to Government initiatives and other environmental changes”. However, it said that continued emergence of inflation is “beginning to offset these benefits”. Premiums in the Republic rose by 7 per cent to €716.9 million.
The Central Bank reported on Monday that insurers in the market posted a €176 million combined operating profit on motor coverage last year, as premiums declined by just 2 per cent even as compensation awards for personal injuries began to drop sharply under new judicial guidelines that came into force in April last year.
The average value of compensation for motor claims resolved under the judicial council guidelines was 34 per cent below those settled against a previous set of guidelines contained in the so-called book of quantum. However, claims settled under the guidelines accounted for only 16 per cent of all motor personal injury cases concluded last year.
Investment income jumped to €44.8 million last year from €5.73 million in 2020. “Investment performance reflects a combination of [market] interest rate increases during 2021 coupled with favourable performance in equity markets during the year, partially offset by some losses incurred on the fixed income portfolio,” it said.
Axa Ireland is set to see a change of leadership at the end of the year as Marguerite Brosnan, currently retail director at the company, succeeds Philip Bradley as chief executive. Axa had an average of 1,373 employees last year, little changed from 2020.
Annual reports filed in recent months for the other main general insurers in the Irish market show that Allianz Ireland’s profits rose 260 per cent to €46.5 last year, helped by lower business interruption costs, and it paid €107 million of dividends.
Aviva Insurance made a €2 million net profit, while RSA Insurance Ireland posted a €1.19 million surplus. Earlier this year, FBD Group reported that it made a profit of €96.4 million in 2021.
