Wednesday 21 March 2018

Profits plunge by 9pc at Harney insurance firm

Mary Harney. Photo: Tom Burke
Mary Harney. Photo: Tom Burke

Gordon Deegan

Pre-tax profits at the insurance firm where former Tánaiste Mary Harney serves as a director fell by by 9pc to €20.7m last year.

Ms Harney was appointed to the board of Dublin-based Euro Insurances in February 2012 and now new accounts show that the firm's revenues from gross premium revenues in the 12 months to the end of December increased marginally from €151.4m to €157.6m.

Ms Harney is one of five board members on the Dutch-owned firm that paid €19m in dividends last year.

The former PD leader serves as a non-executive director with three other non-executive directors and one executive director, Fuzail Nisar, who stepped down at the end of last year to be replaced by Hessel Kaastra.

The accounts show that emoluments for executive and non-executive directors increased almost three-fold from €571,274 to €1.56m last year.

No breakdown is provided of the amount received by each director, but Ms Harney is likely to receive far less for her role as an independent non-executive director than the company's executive director, the UK national Fuzail Nisar.

The principal activity of the firm is the insuring/reinsuring the motor damage and third party liability risk of group companies and third party clients.

The figures show that the firm suffered a 30pc reduction in its Irish business going from €5.3m to €3.68m last year and according to the directors' report: "The income from insurance activities showed strong results, with investment income being €2m behind 2013 actuals, due to market conditions."

The report states that "the company has continued to invest in strengthening key process and functions in the company to provide a solid platform for future business activity".

The directors state that for 2015 "the company is to continue its operations in existing markets with existing customers and will investigate additional opportunities in new and existing territories in line with the company and group insurance strategy".

The company paid out €72m in claims last year with the reinsurer's share of €2.5m reducing the amount to 69.47m.

The firm's accumulated profits stood at €77m last year with total shareholder funds standing at €88m.

The firm's cash stood at €218m. Numbers employed increased from 43 to 44 while staff costs last year went up from €5.1m to €5.8m.

Irish Independent

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