Sunday 18 August 2019

Insurer 123.ie pays €8.5m dividend amid industry scrutiny

Insurance broker 123.ie paid an €8.5m dividend last year to its immediate parent firm, RSA Insurance Ireland, accounts for the company behind the business show. Stock photo
Insurance broker 123.ie paid an €8.5m dividend last year to its immediate parent firm, RSA Insurance Ireland, accounts for the company behind the business show. Stock photo
John Mulligan

John Mulligan

Insurance broker 123.ie paid an €8.5m dividend last year to its immediate parent firm, RSA Insurance Ireland, accounts for the company behind the business show.

The figures also show that 123.ie made a €6.3m profit after tax last year, down from €7.4m a year earlier.

Insurance companies in Ireland have been making big profits despite complaining of high payouts on claims. Consumers feel they have been paying the price with higher premiums on car and home policies, while some children's play centres have claimed they are being forced out of business.

This week, Junior Finance Minister Michael D'Arcy highlighted the "significant profits" among insurance firms, as he called on them to explain why premiums remain high.

The latest set of accounts for 123 Money, the firm behind 123.ie, show that its revenue in 2018 was virtually flat compared with 2017, at €29.7m.

The directors note in the accounts that the firm's future developments will be "in line with RSA group strategy".

"The strategy is based on a disciplined approach to delivering strong, sustainable returns, and our strategic priorities are centred on strong annual earnings, targeted profitable growth and operational excellence," they added.

The €8.5m dividend paid last year compared with the €10m it paid in 2017. The firm had retained earnings of €4.7m at the end of 2018.

Client funds were €8.7m, compared with just over €12m at the end of 2017.

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