Hibernian Group today announced an increase of 17% in profits on the corresponding period last year.
Profits for the half year to 30 June this year amounted to €127.1 million, increased from €108.4 million in the same period last year.
Funds under management at 30 June were €8.1 billion.
The components of Group operating profit were €26.1 million (2003: €45.1 million) in Life & Pensions and €101 million (2003: €63.3 million) in General Insurance. Life & Pensions new business on an APE basis grew by 13% to €64.1 million (€56.5 million) while General Insurance gross written premium was down for the corresponding period to €450 million (2003: €505 million).
Commenting on the Interim Results, Bryan Jenkins, Chief Executive of Hibernian Group said:
"Overall the half year performance was good with positive underlying performance across our businesses.
In general insurance, the strong operating result reflects a combination of our disciplined underwriting, lower claims costs across the board and better than-expected weather claims experience. As a result of the improvement in profitability, the market dynamics are changing and we are experiencing an increase in competition.
Hibernian Life & Pensions, the third largest life and pensions provider in Ireland enjoyed very strong new business volumes during the half- year. Sales growth in term assurance and pensions was positive. However, operating profit was lower at €26.1m due to a more cautious assessment of the future persistency environment, particularly on unit-linked pensions."
Restating the Group's commitment to Government-led initiatives to control costs Bryan Jenkins said: "It is early days, but the success of initiatives like the newly operational PIAB together with more stringent enforcement of road safety legislation have the potential to lead to further reductions in claims and associated costs for our customers. Already, we have seen premiums for motor business fall to levels last seen in 1999."