Profit jumps to €50m at FBD as Storm Ophelia costs the group just €5.4m
Profit before tax at FBD insurance jumped to €50m in 2017, a significant increase on the €11m in profit before tax recorded in 2016, according to the group’s financial results released today.
The underwriting profit includes claims pay-outs from Storm Ophelia, which amounted to just €5.4m after reinsurance recoveries and reinsurance reinstatement.
Storm Ophelia saw hurricane-force winds hit the country and caused three deaths last year.
At the time investors had braced for a significant impact on FBD when the storm struck especially hard in rural Munster, a key market for the farmer-backed group. In total FBD received more than 2,000 claims relating to the storm.
As a result of the strong performance the insurance group has proposed a dividend of 24cent per share to its shareholders.
"FBD has had an excellent year and we are pleased to see our strong strategic delivery reflected in these results," Fiona Muldoon, Group Chief Executive, said.
"After three years of hard work and corrective action, my colleagues and I have delivered a strong underwriting profit for the year."
During the year the country’s biggest stand-alone insurer delivered a 17pc return on equity, due to what the company described as an "exceptionally strong underwriting result and some positive prior year reserve development."