Farm Ireland

Monday 19 March 2018

FBD says its back in the black due to focus on delivery to farm customers

FBD chief executive Fiona Muldoon
FBD chief executive Fiona Muldoon
Ellie Donnelly

Ellie Donnelly

FBD has posted a pre-tax profit of €11.9m for the first six months of the year, up from a loss of €3.7m in the same period in 2016.

The profit was driven by a rise in premiums written, which were up 4.9pc to €189.7m compared to the same period last year, as well as an underlying improvement in loss ratios from better risk selection and improved price adequacy.

Average premium rates increased by 5pc since the first half of 2016, the Dublin-based insurer said.

Read more: FBD ventures into travel market as foreign trips rise

FBD’s operating ratio, a key measure for profitability in general insurance, was 93.1pc, helped by a one-time €5.6m MIBI provision release following the Setanta Supreme Court judgement.

Any score below 100pc signals that an insurance company is profiting from the business that it is writing.

The company’s annualised total investment return of 0.7pc reflected on-going low-return environment, with increases in core bond yields driving modest unrealised mark to market losses of 0.3pc.

Fiona Muldoon, CEO of FBD, described the performance as "a good set of results" which reflected what she said was the strong actions taken by the company in the last few years.

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"Our focus on delivery for our farm, small business and consumer customers has returned our business to profit," Ms Muldoon said.

Last month the Sunday Independent revealed that FBD is entering the travel insurance market.

Cover on offer will include annual multi-trip policies, as well as single trip, family and backpaper policies.

The move expands the company's consumer range which includes home, car, life and mortgage protection products.

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