Insurer FBD this morning reported a sharp fall in pre-tax profits for 2007 to €162.2 million, down from the €296.8 million reported a year earlier.
FBD said this profit included the proceeds of a land sale for almost €82 million.
The company added that underwriting profit declined, as expected, last year; although gross written premiums were marginally ahead due to continued customer growth.
Increasing competition had pushed average premium prices lower by 6 per cent last year, FBD said. Although premium price reductions continued in 2007, FBD said the "sustainability of such pricing is questionable".
"It is the widespread view of industry analysts, however, that the downward trend is about to be reversed," the company said.
FBD said it had implemented single-digit price increases on specific products since January this year.
Overall operating profits for 2007 grew 48 per cent to €235.5 million, although that figure included a non-recurring credit of €107.6 million following a revision of its claims reserving policy.
FBD said its adjusted operating profit amounted to €127.9 million, 19.3 per cent lower than the comparable figure for 2006. The company attributed the decline to a "reduction in the return on the Group's capital fund".
Gross written premiums rose to €407.9 million last year, a marginal increase on 2006. Adjusted operating earnings per share fell 16 per cent to 316.3 cents.
Philip Fitzsimons, FBD chief executive said: "We delivered another strong performance in the year under review. In our insurance business, we increased our market share in what continued to be a very competitive environment."
"The plans which we have been pursuing to strengthen and broaden our platform for growth are already achieving positive outcomes," he said.
At 9.30am FBD shares were up over 5 per cent at €30.70 on the Dublin market.