Insurance group FBD has recorded a profit of €158.5 million for last year, a slight drop on the €162.6 million group operating profit posted in 2005.
Publishing its 2006 financial results today, FBD said total operating income grew to €427.9 million from €404.5 million the previous year.
The figure includes net earned premiums of €346 million and investment income of €48 million in the group's insurance underwriting business plus net of €33.9 million from non-underwriting activities.
FBD recorded expenses of €269.4 million related to the underwriting business. These comprise claim costs of €224.7 million, up from €202.5 million in 2005, and operating expenses of €44.7 million.
Gross written premiums increased to €407.3 million, compared to €389.5 million in 2005. FBD said that in the light of the reductions in average premium levels that prevailed in the market in 2006, this increase was "satisfactory" and reflected continued growth in customer numbers.
Net claims for 2006 were €224.7 million.
The group said the trend in premium reductions which has been a feature of the Irish insurance market in recent years has continued, with intense price competition occurring across all classes of business.
It said the environment had been influenced by fraudulent claim prevention measures, road safety initiatives, including random breath testing, better law enforcement, extension of penalty points, health and safety measures in the workplace/home and the establishment of the Personal Injuries Assessment Board.
FBD announced a final dividend of 45 cent per share, bringing the total for the year to 69 cent, an increase of 20 per cent on the previous year.