Severe weather pulls down profit at insurance firm FBD
Published 26/08/2014 | 08:15
Insurance firm FBD Holdings has reported a sharp drop in pre-tax profit for the first six months of the year, down over 82pc to €3.27m.
Gross written premium was up 5.1pc to €184.9m as the company's market share grew, it said today.
The company said the drop in profit was due to a combination of the higher cost of claims relating to bad weather as well as an increase in the number of car insurance claims during the period.
Around €44.3m was spent by the group on 9,000 claims relating to last winter’s storms.
In addition, mid-February’s Storm Darwin is likely to cost the company €30.4m in claims.
The weather-related costs are the highest in FBD’s history, according to the group.
“These are robust results in a period significantly influenced by weather and an increase in claims frequency across the Irish car insurance market," said Andrew Langford, chief executive.
"In this period, we have worked tirelessly to put things right for over 9,000 customers directly impacted by the severe weather, at a cost of €44.3m. Our strong position and continuing investment in the Irish market delivered further growth in premium and market share. The increased interim dividend delivers on our commitment to a progressive dividend policy and reflects our confidence in our strategy for the future.”