Pre-tax profits at FBD Holdings almost quadrupled in the first half of 2003, interim results for the insurance group show.

FBD made pre-tax profits of €53.3 million in the half year to the end of June 2003, compared with a figure of €14.1 million for the same period in 2002.These figures, combined with JP Morgan's decision yesterday morning to upgrade British insurers, saw FBD's stock jump by €1.60 to €8.70.

The group's results were attributed to growth in premium income and reduced claims, as well as a positive performance from its hotel and leisure business.

FBD's interim results show operating profits at the insurance firm rose from €17.3 million in 2002 to €61.8 million during the half-year ending in June 2003.Turnover at the firm increased by over 26 per cent, from €172 million to €217.5 million.

Mr Philip Fitzsimons, chief executive of FBD Holdings, said positive sales figures for 2003, allied to a 31 per cent growth in sales during 2002, had resulted in a significant increase in earned premiums in the first half of 2003.

The sales growth has been supported by FBD's diversification from its original agricultural customer base into urban and commercial markets. The premium income, combined with "substantial" savings in injury claims and a fall in accident frequency during 2003, resulted in a turnaround in FBD's insurance underwriting business, Mr Fitzsimons said.

The company made an underwriting profit of €32.2 million in the first half of 2003, compared with a loss of €4.3 million for the first half of 2002.

FBD recently implemented cuts of 10 per cent on motor and home insurance premiums and 7.5 per cent on property rates for shops, pubs and other retail outlets.

"FBD continues to monitor claims trends and if the current improved environment is maintained, further reductions in premiums are anticipated," Mr Fitzsimons said.

He added that the performance of FBD's property and leisure business, which includes the group's interests in the Tower Hotel Group in Ireland and the La Cala Resort and Sunset Beach Hotel in Spain, was "most satisfactory" in light of current market challenges. The sector contributed €10.2 million to the total operating profits of €61.8 million for the period. FBD's financial services business accounted for €2.9 million of the operating profit.

FBD sees the outlook for the group for the remainder of 2003 and beyond as very encouraging.