FBD welcomes Supreme Court decision upholding personal injury guidelines

Last month, The Supreme Court ruled that personal injuries award guidelines approved by Ireland's judges three years ago are legally binding and remain in force. Picture: Brian Lawless/PA

Irish insurer FBD has welcomed the "certainty" brought by a recent Supreme Court decision upholding the legality of guidelines to reducing personal injury awards, adding that it "reaffirms the insurer’s assumptions about the new regime."

In a trading update for the first three months of 2024 issued ahead of its annual general meeting on Thursday, the insurer noted a "solid" start to 2024, despite having been impacted by storms, particularly Storm Isha at the beginning of the year.

The company's Gross Written Premium increased by around 9% compared to the same period in 2023, with the growth driven by new business policies written in Business, Retail and in particular Farm, chief executive Tomás Ó Midheach said. 

"We maintain strong retention of our existing customer base while simultaneously growing in policy count," he added.

"Overall, we remain confident in the underlying profitability, future growth prospects and capital strength of the business."

Last month, The Supreme Court ruled that personal injuries award guidelines approved by Ireland's judges three years ago are legally binding and remain in force.

In what was a complex but historic decision concerning personal injuries awards, a seven-judge court also held that while the guidelines continue to have effect, any further changes would require legislative intervention by the Oireachtas.

"We welcome the certainty brought by the recent Supreme Court ruling relating to Personal Injury Guidelines (Delaney v Injuries Resolution Board), which reaffirms our assumptions regarding the reducing cost of injury claims," Mr Ó Midheach said.

FBD posted a surge in profit last year with the firm benefiting from continued growth in insurance revenue coupled with positive investment returns. In March, the insurer posted 24% rise in pre-tax profit, totalling €81m in the year.