NEW IRELAND Holdings has recorded strong growth with a 42 per cent rise in pre tax profit from £7.32 million in 1994 to £10.39 million in 1995. The results are in line with brokers' predictions.

New Ireland Holdings controls the New Ireland life assurance company, the Irish National general insurance company and New Ireland Financial Services, all of which recorded good profit growth.

Irish National increased its profit before tax from £140,000 to £3.23 million. However, the underwriting loss increased from £3.29 million to £5.78 million and the gross premium income had only a marginal increase to £77.7 million.

Most of the underwriting loss was due to the private motor insurance market. The standstill in premium income was attributed to the "unprecedented" price war by group managing director Mr Jack Casey.

"There is no statistical justification for the widespread rate reductions" he said. Against this background, Irish National has introduced a new rating structure.

Other accounts in Irish National "performed satisfactorily" but the fire account was adversely affected by weather related claims and a number of large claims on the commercial fire account.

It incurred losses in the liability insurance market, where premium rates based on claims experience "should be hardening rather than softening".

Irish National enjoyed higher investment income due to the better performance of financial markets.

New Ireland Assurance, the life company, had an increase in profits from £6.67 million to £7.09 million. Annual premium new business rose by 4.5 per cent in a static market.

This was described as "very satisfactory" as a number of its main competitors suffered from a decline in market share. The pension sector was particularly strong.

New Ireland Assurance had a 14.1 per cent increase in annual premium income to £78.6 million. Single premium new business, however, was marginally down at £93.1 million.

The embedded value - the value of the assets and the present value of the projected cash flow - of the life company increased from £84.1 million to £102.2 million. This was boosted by £10 million from the conversion of redeemable preference shares to equity.

New Ireland Financial Services increased its profit from £540,000 to £930,000. The funds under management went up from £1.3 billion to £1.6 billion.

New Ireland Holdings' underlying results are somewhat better than would appears from the figures as profits at the pre tax level were deflated by £870 000 interest on a subordinated loan from UAP, its 83 per cent French parent.

Reflecting real growth, earnings per share grew from 33p to 55.9p. A final dividend of 12.62p net per share has been declared, making a total of 16.86p, up from 15.31p in 1994. The final dividend will be paid on June 5th.

Mr Casey said he was "extremely optimistic" about the performance of the life company for 1996. Motor "remains a worry" but the company was now selling in specific segments of the market and other accounts were performing "very well". Further growth is expected from the financial services company.