Successful 2003 for FBD despite increases in road deaths

FBD Holdings Chairman Michael Berkery has criticised the Government's inaction in tackling the number of road deaths at his company's annual general meeting today.

Referring to the tragic impact of increasing road deaths this year, Barker said there was 'an absolute necessity' for a vigorous programme of enforcement by the gardaí of the penalty points system.

This will be the key factor in improving driving habits, the insurance group's chairman informed shareholders at the company's agm today.

Despite this, Berkery reported that 2003 was a very successful year for the company with all of the Group's key business units in its insurance/financial services and property/leisure divisions contributing to that success.

For the first time since FBD was established, the company achieved an underwriting profit in motor and liability business, the chairman said.

This turnaround was due to a reduction in the number of personal injury claims reported and also the lower than anticipated awards in the past year.

Berkery said that the improved claims environment has been brought about by the reform measures which the insurance industry, the Government, businesses and consumers are pursuing.

This concentrated effort to eradicate Ireland's previous rampant claims culture is evidenced in the positive underwriting result, he added.

Berkery told shareholders today: "It is incumbent on Government in particular, to maintain the momentum for reform.

"Resources must be allocated to road safety initiatives and to fully implementing the penalty points regime. Otherwise, there is a real risk, through complacency, that we will revert to the old ways, re-igniting the claims premiums spiral.

"We look to the new Personal Injuries Assessment Board to give an additional impetus to the reduction of claims costs, and we call for early enactment of the Civil Liability and Courts Bill. These legal initiatives hold considerable promise and augur well for both shareholders and customers," Berkery added.

The chairman again highlighted the lack of progress that has been made on uninsured drivers. In 2003, FBD's share of uninsured driver claims cost the group a total of €7.8m, up €0.5m on 2002.

He also highlighted FBD's premium reductions in motor and other business classes during 2003, and confirmed that a continuation of the favourable claims trends and improving underwriting performance will lead to further premium reductions in particular categories of insurance this year.

Shareholders approved the payment of a final dividend of 17 cent per share, making a total of 27.6 cent for the year, a 25% increase on the 2002 dividend.

Looking forward, Berkery indicated that FBD's business targets for 2004 will be achieved with particular attention being focused on developing the business in the greater urban areas, and Dublin in particular.

Shares in the firm were trading down 3c at €15.12 this lunchtime.