Hibernian operating profit rises 9%

Hibernian, the life and general insurance group, has announced a strong set of interim results with operating profit up 9 per cent, despite having been hit by falling global stock markets in the first six months of the year.

The group's operating profit jumped 9 per cent to €94 million in the six months ended June 30th. Gross premium income posted an increase of 1 per cent to €958 million. Life and pensions new business sales were up 28 per cent to €106 million on an annualised premium equivalent (APE) basis, with the contribution from new business up 24 per cent to €27 million. General insurance premiums were up to €474 million from €418 million, with operating profit up to €35 million from €26 million. Funds under management increased by 5 per cent to €7.15 billion.

Chief executive Mr Bryan Jenkins said, despite turbulent stock markets having "taken their toll, providing a difficult operating environment", the year to date had seen a strong performance in its life and pensions and general insurance businesses.

"In Hibernian life and pensions, €36.7 million of new premium from the Government-sponsored special savings investment accounts contributed to growth of 28 per cent in new business APE relative to the same period last year," he said. "A fall of 30 per cent in single premium sales was offset by growth of 76 per cent in annual premium sales, with both life and pensions ahead. New business margins fell slightly in the period, to 25.7 per cent."

Mr Jenkins added that Hibernian was committed to implementing the measures contained in the Motor Insurance Advisory report intended to reduce the cost of claims and settlements.

Meanwhile, Hibernian's parent group, Aviva, reported interim results in line with market expectations. The British group, formerly CGNU, said operating half-year profits were £979 million sterling (€1.55 billion), compared with £977 million a year earlier.