FBD narrows underwriting losses

Insurance-company FBD Holdings today reported a rise in operating profits of 24 per cent to €37.5 million last year.

Insurance-company FBD Holdings today reported a rise in operating profits of 24 per cent to €37.5 million last year.

The company reported a reduction in its underwriting losses on motor insurance from €12.1 million to €10.2 million and a €3.4 million improvement in the contribution in property in the year ending December 31st 2002.

According to FBD this reduction was due in part to measures introduced by both the industry and the Government. The company said the focus on lowering the claims loss ratio will continue.

The company's total assets grew by 23.9 per cent to over €1 billion. The board recommended a final dividend of 12.9 cent per share. This combines with an interim dividend of 9.10 cent giving a total dividend of 22 cent up 12.8 per cent.

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Profits from FBD's other financial services operations rose by 32 per cent to €3.3 million while the property and hotels division added a slightly lower €9 million to profits.

FBD chief executive, Mr Paul O'Callaghan said motor underwriting appeared to have benefited from the introduction of the penalty points system late last year.

FBD said that if this trend continued, it was realistic to hope for reductions in premiums in the short to medium term.