FBD Records Increase in Gross Premiums Driven by Policy Numbers and Customer Retention
Insurance company FBD has announced an increase in gross premiums in the year so far, driven by a combination of increased policy numbers, higher average premiums, and a focus on customer retention. In a recent trading update, FBD reported that its performance over the first two quarters has been in line with its expectations. The firm has recorded an 8% rise in gross written premiums ahead of the equivalent period in 2022.
The latest figures from the Central Statistics Office (CSO) showed that lower prices for diesel, petrol, and passenger transport contributed to a downtrend in consumer price inflation in April. However, this decrease was partially offset by higher prices for cars, which may have contributed to a rise in premiums. Despite this, FBD remains confident in the company’s underlying profitability, future growth prospects, and capital strength of the business despite ongoing headwinds including rising interest rates and inflationary pressures.
FBD, one of Ireland’s largest insurers, is monitoring the implementation of the Personal Injuries Guidelines, which were adopted by the Judicial Council, on an ongoing basis. The company is also aware of the impact of higher prices charged to customers. Additionally, FBD has put €42m in net provisions for Covid-related claims, and it expects a decision on the last remaining Covid-19 pub business interruption case against FBD by mid-June.
FBD CEO Tomás Ó Midheach said the ruling from the judge would “provide certainty” in respect of outstanding issues and enable the insurer to pay the balance of its Covid-related claims to publicans. The firm said it remains “confident” in regards to the company’s underlying profitability, future growth prospects, and capital strength of the business despite ongoing headwinds including rising interest rates and inflationary pressures.
Last year, the competition watchdog alleged six motor insurance firms, including FBD, engaged in anti-competitive price signalling over a 21-month period, from 2015 to 2016, leading to premiums rising for consumers. This prompted the Central Bank to introduce new regulations for the motor insurance industry.
In conclusion, FBD’s increase in gross premiums is a positive sign for the company’s future growth prospects. While there are ongoing challenges, such as rising interest rates and inflationary pressures, FBD remains confident in its underlying profitability and capital strength. The company is also closely monitoring the implementation of the Personal Injuries Guidelines and expects a decision on the last remaining Covid-19 pub business interruption case against FBD by mid-June.