Insurer FBD Holdings is to cut back its motor business after posting a "disappointing" loss in 2014.
Chief executive Andrew Langford said the company would focus on its existing motor business rather than seeking new customers.
Mr Langford predicted FBD’s motor premiums would rise by 7pc or 8pc on average in 2015, reflecting an increase in claims fuelled by the economic recovery, according to the Irish Times.
He said scaling back the motor business would probably lead to only a small decline in FBD's market share.
Shares in FBD have lost over 40pc in the last year and the company posted a pre-tax loss as the company struggled with bigger customer pay outs and the fall-out from historically severe weather at the start of 2014.
Mr Langford said he hadn't considered resigning.
Car insurance is one of the fastest rising costs for many families. Drivers are bewildered by excessive premium hikes when they haven't had a claim and don't understand the reasons for the hefty renewal notice dropping through their letterboxes. Premiums were up 12pc during 2014, according to the Central Statistics Office, while increases of up to 15pc are mooted for this year.
Mighty oaks from little acorns grow. While we're all aware of the tenets of budgeting and saving money, sometimes it's easier to effect small changes that will make a real difference than it is to get rid of your credit card or cancel your TV subscription.