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FBD posts modest profit - but warns insurance premiums will 'remain high'


FBD chief Fiona Muldoon Picture: Damien Eagers

FBD chief Fiona Muldoon Picture: Damien Eagers

FBD chief Fiona Muldoon Picture: Damien Eagers

FBD group has announced an €11m profit before tax from continuing operations, including a one - time pension gain of €7m. It comes on the back of a loss of €89m in 2015

In its 2016 preliminary results announced this morning the group highlighted its continued focus on Irish farm and small business (SME) sector underpinned by a single brand consumer strategy

Gross Written Premium of €362m , was down €1m compared to 2015 including a €15m reduction in business written through brokers

Meanwhile average premium rates increased of 9pc, offset by a 5pc decline in policy volume from direct operations.

Commenting on these results, Fiona Muldoon, Group Chief Executive, said she was pleased to note that FBD has returned to profit helped by an unusually mild winter so far and our own strong underwriting actions.

"Our strong customer relationships and the level of service we provide have ensured good retention in our key customer groups despite some of the necessary price increases they have experienced.

"While we saw some degree of stabilisation in the cost of claims, we believe insurance premiums in Ireland are and will remain high until structural claims reform is successfully executed," she said.

Muldoon welcomed the findings of the Government Cost of Insurance Working Group and the focus that it brings to the rising cost of claims for Irish customers.

"It is important that the Government follow through in translating these recommendations into policies and legislation that will deliver a lower cost, sustainable claims environment for the benefit of all customers .

"We look forward to working with others to ensure that these proposals are implemented in ways that will help Irish farmers, small businesses and consumers manage their insurance costs.

"In the absence of implementation of particular sections of a lengthy report we believe Irish insurance customers will continue to bear the cost of significantly higher premiums than those seen in other countries," she said.

Notwithstanding the challenges in the market, Muldoon said believed the group is well positioned to make further progress during 2017.

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