LONDON (Alliance News) - FBD Holdings PLC Monday reported a 1.5% decline in pretax profit after it was hit by a small number of very large accident and liability injury claims, but reported an increase in customer numbers, resulting in the insurer's first increase in written premiums since 2010.
The Irish property and casualty insurer of farmers, private individuals and business owners said it made a EUR51.5 million pretax profit in 2013, compared with EUR52.2 million in 2012. Total income rose by 0.2% to EUR341.0 million, while expenses rose by 0.5% EUR289.6 million after a rise in net claims and benefits.
"During 2013, the combined cost of severe weather and large claims were above historic norms. The group expects that these claims costs will revert to normal levels in 2014 and that the initiatives on those aspects of claims costs that are within the group's control will continue to have a positive impact on the loss ratio," FBD Holdings said in a statement.
Gross written premium rose to EUR351.2 million from EUR344.3 million but the insurer said industry premium and profitability remain "challenging" despite initial signs of economic recovery in Ireland.
The insurer also said pressure on market rates suggests further deterioration in industry profitability in 2013, but said there were some early signs of industry rate increases in the final quarter of 2013, particularly in car insurance.
FBD Holdings guided operating earnings per share of between EUR1.20 to EUR1.30 for 2014, as long no exceptional events arise.
The company reported operating earnings per share of EUR1.36 in 2013, down from EUR1.70 in 2012.
"The wind storm that hit Ireland in the middle of February 2014 is likely to cost the industry up to EUR130 million. The group budgets for catastrophic weather events, net of reinsurance, and the February wind storm will not exceed that budget. However, the persistent bad weather over the preceding month, whilst not amounting to a catastrophic event, will lead to an increase in the cost of 2014 claims," FBD said in a statement.
FBD Holdings raised its full-year dividend to EUR0.49 from EUR42.25.
FBD shares were Monday quoted at EUR18.75, up 1.4%.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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