Irish insurer FBD Holdings today reported a rise in pre-tax profits to €58.9 million for the six months to the end of June 2004 and said it was issuing a loyalty discount to customers to the value of €30 million.
Operating profit increased to €65.9 million, up more than €4 million compared with the January to June period in 2003.
As a result the interim dividend has risen to 12.72 cents from 10.60 cents, an increase of 20 per cent.
In a statement the company said the value of gross premiums written in the six months grew to €187.8 million, up from €177.8 over the same period last year.
The net cost of claims was also up, rising to €99.7 million from €93.7 million. FBD said its claims to premium ratio delivered a €42.5 million underwriting result.
Due to the favourable underwriting result FDB intends providing a special loyalty discount for renewal premiums to all core product policyholders. This will apply to certain policies held in October 2004 which are renewed for the next 12 months. The total value of this discount will be €30 million.
According to the group its interests in the La Cala Resort and Sunset Beach on the Costa del Sol in Spain, and its 75 per cent shareholding in the Tower Hotel Group in Ireland, added €2.1 million in profits.
The insurer said its prospects for the rest of the year are positive.