FBD keeps outlook positive as profit jumps on higher revenue

(Alliance News) - FBD Holdings PLC on Friday posted a jump in its annual profit amid increased sales.

In 2023, the Dublin-based insurer said its pretax profit rose 24% to EUR81.4 million from EUR65.8 million the year before.

This was driven by a 5.6% boost in insurance revenue, to EUR401.0 million from EUR379.7 million the year prior.

The increase in revenue was attributed to gross written premiums which increased by 8% to EUR414 million from EUR383 million the year before. Over 70% of the increase came from Farmer and Business relationship customers, FBD explained.

The firm proposed a final dividend of 100.0 euro cents, unchanged from 2022, and declared an additional special dividend of 100.0 cents.

Looking ahead to 2024, FBD gave a positive outlook, but said its growth expectations are more modest.

Chief Executive Tomas O Midheach said: "Building on our successful approach to date to drive measured profitable growth, we are pleased to announce a robust result for 2023. This was achieved as a result of strong returns from our business activities, underpinned by our underwriting discipline. In addition, the result was enhanced by favourable prior year reserve development.

"We are acutely conscious of the economic environment as inflation and interest rates increase costs with resultant impacts on our customers and our business," he continued. "FBD strives to ensure that our customers remain with us for the service they receive and requires us to work with our customers to ensure they have appropriate cover.

"We maintained our strong retention rates of our existing valued customers, while also driving growth in new customer and policy count numbers. Both of these performance factors are focused on meeting the needs of our customers through the provision of a personalised service nationwide."

Shares in FBD were flat at EUR12.65 each in London on Friday morning.

By Sabrina Penty, Alliance News reporter

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