Insurer FBD premiums jump 8% helped by prices and more business

The insurer expects a decision on the last remaining covid-19 pub business interruption case by mid-June

FBD said its performance over the first two quarters has been in line with its expectations

Insurance company FBD recorded an increase in gross premiums in the year so far, driven by a combination of increased policy numbers, higher average premiums, and a focus on customer retention.

In a trading update, FBD said its performance over the first two quarters has been in line with its expectations, as the firm reported gross written premiums rose 8% ahead of the equivalent period in 2022.

Latest figures from the CSO showed lower prices for diesel, petrol, and passenger transport contributed to a downtrend in consumer price inflation in April, but this decrease was partially offset by higher prices for cars which may have contributed to a rise in premiums.

FBD, which is one of Ireland's largest insurers, said it is monitoring the implementation of the Personal Injuries Guidelines, which were adopted by the Judicial Council, on an ongoing basis and is also aware of the impact of higher prices charged to customers.

Covid business interruption cases 

Meanwhile, the insurer also said it expects a decision on the last remaining covid-19 pub business interruption case against FBD by mid-June.

FBD CEO Tomás Ó Midheach said the ruling from the judge would “provide certainty” in respect of outstanding issues and enable the insurer to pay the balance of its covid-related claims to publicans. FBD said it put €42m in net provisions for these claims.

The firm said it remains “confident” in regards to the company’s underlying profitability, future growth prospects, and capital strength of the business despite ongoing headwinds including rising interest rates and inflationary pressures.

Last year, the competition watchdog alleged six motor insurance firms, including FBD, engaged in anti-competitive price signalling over a 21-month period, from 2015 to 2016, leading to premiums rising for consumers.

This prompted the Central Bank to introduce new regulations for the motor insurance industry.