FBD insurance has indicated that its insurance premiums are unlikely to rise and motor premiums may even fall if current trends continue.
A spokesperson for the company said that on a case-by-case basis they would look at reducing car insurance premiums.
“On the positive side we reduced rates towards the end of 2011, where claims experience allowed — particularly on car insurance. Where possible we will continue to do this. Weather permitting, we have no plans to increase premiums this year.”
FBD insurance said that the mild winter and drop in the number of miles people are driving have contributed to the company’s ability to maintain cost controls, allowing them to consider passing savings on to customers.
In a trading note issued yesterday FBD insurance said that the Irish insurance market remains competitive which is driving investment in advertising, while pushing FBD to keep the price of risk low.
The mild weather was a key factor in FBD showing a healthier loss ratio this year compared with the same period in 2012.
The company’s statement said: “Factors over which FBD has less influence, such as the benign weather experienced in the first quarter and reduction in miles driven by Irish motorists, also contributed positively and helped deliver an improved loss ratio, relative to the comparative period in 2011.”
FBD is planning to focus on the buoyant agricultural sector of the economy to boost its revenues. Overall it expects demand for insurance in Ireland to decline but at a slower rate than previously.
As well as targeting the agricultural sector FBD has been targeting the market through different streams. The insurer has had particular success through its NoNonsense.ie subsidiary. Capitalising on this the company expects to outperform the market over the next year.
Unless exceptional events arise during the remainder of 2012, the group is reaffirming its previous guidance — full-year 2012 operating earnings per share of between 145 and 155 cents.
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