FBD profits fall on storm claims

A branch office of FBD Insurance in Dublin.  FBD said heavy snowfall in January and Storm Éowyn led to a significant surge in claims.

FBD reported a profit before tax of €17m for the first half of the year as insurance revenue rose by 11% to €235m.

However, this profit is a decrease from €32.3m in the first half of 2024, largely due to the increased claims from the weather aevents.

FBD said heavy snowfall in January and Storm Éowyn led to a significant surge in claims. The weather events are expected to have a net cost of €30.6m, and approximately 90% of these claims have been resolved.

 The impact of these events is reflected in the Combined Operating Ratio (COR), which increased to 94.2% from 87.7% in the previous year. However, FBD has updated its guidance, stating that a COR in the low 90s is achievable for the full year 2025. 

"Gross Written Premium (GWP) increased by approximately 10% compared to the same period in 2024," chief executive Tomás Ó Midheach said. "Customer retention remains consistently high, underpinned by the strength of our nationwide branch network."

The FBD board also approved a special dividend of 75 cent per ordinary share and has set aside €4m for share repurchase for the remainder of 2025. Net asset value per ordinary share stood at 1,308 cent, a slight decrease from the end of 2024, as dividends paid exceeded profits accrued in the period.

"Maintaining a strong capital position while delivering sustainable dividends continues to be one of our key goals. We are very pleased to confirm our Board have approved a special dividend of 75 cent per ordinary share," Ó Midheach said.

FBD's share price touched €14.20 in trading yesterday and is up more than 12% this year.

"We are confident that our relationship driven approach, supported by a digitally enabled, data enriched organisation will continue to deliver long-term value for our customers and stakeholders alike," Ó Midheach said.

In its report, FBD acknowledged risks associated with global economic shifts, such as deglobalisation and changes in taxation, which could impact the Irish economy. The potential for more frequent and severe weather events is also noted as a risk that could affect the cost and availability of reinsurance.

In a note on the results, Davy said FBD delivered another strong performance in H1 built on growth in customers and premiums.

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