FBD expects claims costs to rise

FBD has no plans to increase home insurance premiums, but it expects to see a rise in claims costs on the back of the harsh weather conditions.

After the publication of the group’s annual results yesterday chief executive Andrew Langford said it is still too early to know how much FBD will need to pay out, but estimated February storms could cost the insurance industry as a whole €130m in additional claims, before reinsurance effects.

Mr Langford said, however, that FBD budgets for around two such weather events per year and doesn’t expect a slew of such extreme conditions. In January, FBD said December’s storms were set to cost it €4.5m in additional claims and reduce earnings per share, for last year.