FBD insurance upbeat on outlook as profits jump

The company said operating profits rose to €61.77 million in the six months to June from €17

Insurance group FBD Holdings today reported a sharp increase in first half profits and described the outlook for the year as a whole as "encouraging".

The company said operating profits rose to €61.77 million in the six months to June from €17.32 million the previous year.

Turnover was up 26 per cent at €271.54 million while pretax earnings rose to €55.4 million from €14.1 million.

The company increased its interim dividend by 16.5 per cent to 10.6 cents.Chief executive Mr Philip Fitzsimons said each of the group's business divisions - insurance underwriting, financial services and property/leisure - contributed to the first-half performance.

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"It is a most welcome result against a background of underwriting losses of almost €94 million on the motor account over the previous five years," he said.

Net earned premiums grew to €141.2 million from €114.64 million, boosted by positive sales in underwriting.

FBD said the premium growth, combined with substantial savings in pre-2003 injury claims and a fall in accident frequency in the current year, resulted in a turnaround in the underwriting result to a profit of €32.2 million from a loss of €4.3 million.