Insurance companies make huge profits

INSURANCE companies in the Irish market are making bumper operating profits as yesterday's disclosure by Hibernian Insurance revealed profits on general insurance rose by 60% to €101 million.

The massive increase in operating profits in general insurance business achieved by Hibernian in the first six months of the year is all the more remarkable as revenue from insurance premiums in the same period actually fell by €55 million, an 11% drop, over the first half of 2003.

Hibernian, part of the Aviva Plc, saw operating profits in Ireland on all insurance business increase by 17%, in the first six months of this year over the first six months of 2003, from €108.4m to €127.1m. Again the overall increase in profits came against a background of declining income from premiums down from €835m in the first half of 2003 to €792 in the first six months of 2004, a 5% fall in income.