FBD sees profits fall to €77m despite growth in revenue

FBD said insurance revenue rose by 10% to €441m, with its gross written premiums also rising by 13%

FBD said average premiums in the year rose by 5.8% across the portfolio, half of which related to customers increasing their overall coverage and changing business mix. Picture Denis Minihane.

Insurance provider FBD saw its pre-tax profit fall to €77m last year despite growth in revenue which was underpinned by an increase in transactions among its farmer customer base. 

In a trading statement published on Friday, FBD said insurance revenue rose by 10% to €441m, with its gross written premiums - the total amount collected in exchange for insurance policies - also rising by 13% in the year to €460m at the end of 2024.

"This result is underpinned by increased business growth, positive underwriting results and increased investment returns," said FBD group CEO, Tomás Ó Midheach.

"Additionally, we are pleased to have significantly added to our customer base over the period."

The group's policy count rose by 6.3% last year with 33,000 additional policies written, the insurer said, while retention rates remained "consistently strong" in the company's farming sector.

The group's retail sector also reported a strong performance, with new business growth coming from direct business as well as An Post Insurance and Bank of Ireland. 

FBD said average premiums in the year rose by 5.8% across the portfolio, half of which related to customers increasing their overall coverage and changing business mix. The rise was also driven by premium increases reflecting rising inflation.

The group said its net reinsurance weather losses were higher in 2024 than the previous year, primarily driven by Storm Isha and Storm Darragh, with a net cost of €14.7m in the year.

Meanwhile, large injury claims, defined as a value greater than 250,000 was slightly lower in 2024 than the 10-year average.

Private motor average premium increased by 5.5%, in response to high levels of inflation and frequency experienced from 2022 to 2024 in relation to damage claims.

However, the insurer noted that motor damage costs began to stabilise in the last six months of 2024, although warning of continued inflationary pressure in commercial motor damage claims.

Home and farm average premiums increased by 10.3% and 8.1% respectively, reflecting increases in property sums insured as rebuild costs continued to rise, FBD said.

"Our sustained growth and prudent capital management has enabled us to deliver four successive years of dividends, demonstrating the strength of the business," said Mr Ó Midheach.

"Looking ahead to 2025, FBD is focused on sustaining this momentum."