FBD expects 2022 profit to be near double expectations at €70m

FBD, the Republic’s only indigenous general insurer, has said it expects its financial performance last year to be “significantly ahead of market expectations” with profit before tax of at least €70 million.

FBD issued a trading update on Tuesday for the year ended December 31st, 2022, ahead of the publication of its full-year results on March 10th. The figure of €70 million is roughly twice what analysts have forecast.

In a note to investors after the market closed it said its underwriting performance had benefited from low injury claims frequency; benign weather throughout the year; and positive prior year reserve development.

Investment returns are negative for the 2022 year by €10 million through the income statement and by €90 million through other comprehensive income, “reflecting the mark to market movement on our bond portfolios”.

Student accommodation: A market plagued by bed shortages, rising rents and 51-week leases

---

An attempt to buy the next election with a giveaway budget would be a gross miscalculation

---

The outlook for interest rate cuts is changing - so should Irish borrowers be worried?

---

IDA gives Intel €30m in aid package

---

It said strong underwriting results had been partially offset by a negative return on investments through the income statement.

FBD reported pre-tax profits of €19 million for the first half of last year, down from €22 million for the same period in 2021, with average customer premiums remaining “relatively flat” across its portfolio.

The Irish insurer was also impacted by a €15 million hit on its investment returns amid volatile markets, even as its gross written premiums and earnings from insurance underwriting rose.

The premiums it charged private motor insurance customers in the first half of 2022 fell by an average of 8.1 per cent over the period while commercial motor insurance premiums fell 3.3 per cent. This, FBD said, reflected “the expected reduction in claims costs as a result of the new personal injury guidelines and an improvement in underlying claims experience”.

FBD’s average commercial business and farm premiums, meanwhile, increased by 6.2 per cent and 2.2 per cent respectively over the same period. The insurer said this was because the value of the property insured had increased due to construction cost inflation, although this was “offset” by the reduction in claims costs due to the personal injury guidelines.

Overall, FBD’s gross income from premiums increased 3.3 per cent compared with the same period in 2021.