Insurer FBD has announced a higher-than-expected pre-tax profit of 110 million euros for 2021 as it cut premiums for customers and announced a dividend for investors.
BD’s pre-tax profit last year was more than 20 times the €4.8 million it generated in 2020, with gross written premiums of €366.3 million, an increase of 2.3 percent compared to 2020.
Without the pandemic-related premium discounts of 3.3 million
The company said it has lowered premiums in line with new state personal injury guidelines, with lower costs expected for smaller claims.
Average premiums fell 1.3 percent across the portfolio, with personal auto premiums down 13.9 percent in 2021, FBD said in its 2021 results today.
It has paid 30 million euros in interim payments for business interruption claims after the High Court ruled in January that it must cover losses to pub customers even if venues were allowed to partially open.
The best estimate of business interruption due to Covid-19, net of reinsurance, has fallen to 44 million euros.
Government subsidies paid to pub customers with business interruption insurance did not contribute to the 2021 profit, FBD confirmed on Friday.
The FBD has paid out a further €11m to Pub policyholders following a case brought by the insurer against the Financial Services and Pensions Ombudsman. Further payments are to follow, FBD said, after receiving further requested information.
The insurer reported a return on equity of 23 percent and an unaudited solvency capital ratio of 214 percent.
FBD’s 2021 income statement was €15.7 million compared to €10.4 million in 2020, mainly due to the positive performance of risky assets.
The return on the investment portfolio was 0.3%, reflecting positive investment returns of €3.5m.
The underwriting profit was €95.2 million, compared to a loss of €4.4 million in 2020, giving a combined operating rate of 71.5 percent.
Spending fell slightly last year, FBD said.
“I am pleased to report strong and solid full year results for FBD,” said Group Chief Executive Tomás Ó Midheach.
“As we get closer to the full reopening of the economy and all restrictions are lifted and we will see the withdrawal of state income support, the real impact of the pandemic on the economy will become clearer, while new opportunities and challenges will emerge.
“I am pleased to say that the underlying business is strong and in a very solid capital position as we have weathered the main impact of the pandemic.”
https://www.independent.ie/business/personal-finance/insurance/insurer-fbd-made-110m-profit-in-2021-41410448.html The insurer FBD made a profit of 110 million euros in 2021