Insurer FBD, forecast to make a profit, posted a first-half pretax loss of €21.8 million ($31 million) after writing down the value of properties and paying out more claims, sending its shares lower.
Despite falling sales, FBD is gaining market share in the general insurance market in Ireland and expects its underwriting profitability to improve in the second half on the back of rising rates.
Chief executive Andrew Langford said he expected the company's combined ratio - a measure of underwriting profitability - to improve to 100 per cent for the full-year after hitting 105 per cent in the first half.
Mr Langford said he expected FBD's non-underwriting divisions, principally property and leisure interests in Spain and Ireland, to generate an operating profit in the full-year.
"We are anticipating that they are going to deliver an operating profit for the year ... which is a pretty good performance given the backdrop that we have out there."
At 10.30am, FBD's shares were down 2.6 per cent at €7.49, underperforming the main index, which was off 0.7 per cent.
"It's a little bit worse than expected by the market but nothing exceptional in there," said one Dublin-based trader.
The group made a loss on the back of falling investment returns, falling insurance sales and an €11 million write-down of land and buildings.
Reuters