Insurer FBD's profits up €30m
Insurance and financial services group FBD Holdings made pre-tax profits of €135m last year, up from €106.5m in 2003.
FBD boss Philip Fitzsimons said: "Shareholders will receive an increased dividend payout as we
move to bring dividend cover in line with market norms."
A final dividend of 27.28 cent is being recommended by the FBD board, bringing the total dividend for the year to 40c, an increase of 45% on the corresponding 2003 figure (27.6c).
Commenting on FBD's plans for premium rates, Mr Fitzsimons said: "Based on ongoing monitoring of underwriting trends, we will be introducing further premium cuts in a number of business lines in the near future. Beyond this, additional premium savings will depend significantly on the implementation of the 2002 MIAB Report recommendations."
Last year, gross premiums written fell by 4.6% to €351.5m. This was after FBD implemented rate reductions across all major classes of insurance and after deducting €30m. In respect of a customer loyalty discount.
However, the fall in premium masks strong growth in policy numbers, where sales in personal lines business were well above FBD targets. Notwithstanding the aforementioned premium reductions, net earned premiums grew by 2% to €296.2m, reflecting higher retentions for reinsurance purposes and the earn out of buoyant 2003 sales.
