Hibernian Insurance today said Government initiatives have led to a significant reduction in motor insurance claims in 2003.
The company said the fall in claims has prompted it to cut premiums by an average of 10 per cent and it forecast further cuts.
It said: "It is clear that Government-led initiatives, combined with our own actions, have led to a reduction in claims."
In motor insurance we have seen aggregate reductions of over 10 per cent in premium rates."
"If the momentum created by the insurance reform agenda, spearheaded by the Motor Insurance Advisory Board, is maintained, and we would encourage all parties to ensure that it is, then responsible customers should see this reflected in the cost of their general insurance."
The company today posted an 18 per cent rise in operating profit to €224 million.
The group said for the year ending December 2003 operating profit for its Life and Pensions division was €93.2 million, substantially down on 2002.
The company blamed the decline on falling sales of SSIAs which closed in 2002 and lower investor confidence.
In the general insurance division the operating profit figure increased to €130.5 million, compared to €71.1 million in 2002.