Business Irish

Monday 16 September 2019

Storm Emma expected to cost FBD €7m as claims pass 1,200 mark

FBD CEO Fiona Muldoon
FBD CEO Fiona Muldoon
Ellie Donnelly

Ellie Donnelly

FBD has reported a "solid" start to 2018, despite the impact of poor weather.

In a trading update ahead of its AGM today, the only insurer listed on the Irish Stock Exchange, said that Storm Emma is expected to have an overall net cost (after reinstatement premia) of marginally less than €7m for the company.

To-date the group said it has received over 1,200 claims in respect of the storm, predominately in the East and South of the country.

"We are currently working closely with our customers to compensate them for the damage caused to their homes, farms and businesses," Liam Herlihy, chairman of FBD, said.

"Our catastrophe property reinsurance programme has worked well to protect FBD and mitigate the net impact of this storm. In addition, attritional weather claims are somewhat higher than last year given the prolonged poor weather."

Despite the large volume of claims the group said that the underlying profitability continues to be sound.

"In this current low interest rate environment, investment income continues to be very low and as a result, our focus is on underwriting discipline and careful growth in our core markets of farm, business and consumer, as the Irish economy expands," Mr Herlihy said.

The group also said that, so far this year, it had seen its customer and premium levels "modestly grow."

FBD said that it expects to open a second Dublin branch on Baggot Street in June this year, having open its first Dublin branch in Drumcondra last year.

“This expansion of our nationwide branch network is part of our strategy to bring our excellent Irish insurance expertise and value to the local businesses and consumers of our capital city."

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