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LONDON (Alliance News) - Irish insurer FBD Holdings PLC on Wednesday doubled its dividend for 2018 after reported a strong underwriting performance.
FBD, reporting on its 50th year of business, will pay 50 euro cents per share for the year, having returned 24 cents in 2016.
Underwriting profit for 2018 climbed to EUR63.4 million from EUR44.9 million the year before, helping pretax profit increase to EUR50.1 million from EUR49.7 million.
There was only one serious weather event in 2018, FBD said, Storm Emma, which led to a net cost of EUR6.6 million after reinsurance.
FBD's gross written premiums fell slightly, to EUR371.5 million from EUR372.5 million, with the company blaming a "highly competitive" environment.
Its combined operating ratio was 81.2% from 86.2%. This figure relates to underwriting profit, with a figure below 100% denoting profitability.
The loss ration was 56.3% from 62.9%, while FBD's expense ration was 24.9% from 23.3% year-on-year.
"Our continued focus on underwriting discipline has delivered excellent underwriting profits for 2018. I am delighted the board has proposed to more than double the dividend to 50 cents per share on the back of such strong results, rewarding our loyal shareholders," said Chief Executive Fiona Muldoon.
"We will continue to maintain underwriting discipline in order to provide stability in our core market. FBD continues to offer the broadest cover available to farm customers for property damage and to mitigate the financial impact of tragic farm accidents which are still all too frequent."
Looking ahead, FBD said Brexit uncertainty is "unwelcome", and it added it is difficult to assess how this will affect Irish farmers and businesses.
It is targeting a combined operating ratio in the low 90s gong ahead, and a low double-digit return on equity. The return on equity in 2018 was 15%.
Shares were untraded early on Wednesday, last quoted at a price of EUR8.95 each.
