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EXTREME WINTER WEATHER has knocked around €20 million off FBD’s profits, which have fallen to €5.4 million in the first six months of the year.
The insurer managed to increases market share with premiums up 5.1% to €184.9 million, but admitted that its finances had taken a battering over winter.
As expected, profit is lower than the same period in 2013 primarily due to an increased cost of sever and persistent weather and increased frequency of car insurance claims.
FBD said that it had paid out €44.3 million to 9,000 customers directly impacted by sever weather at the start of the year.
Ciaran Callaghan of Merrion Stockbrokers said that he expects FBD to jack up prices in the coming months.
“Growth in the second half of the year is expected to be driven by rate increases (as opposed to volume growth) as car premiums are re-priced to reflect higher claims.”
Merrion said that they remain positive on the company’s outlook, despite tumbling profits, and are confident that increased pricing will protect the group from further major losses.
Davy also rowed in behind FBD’s strategy, backing a decision to scale up the interim dividend payment to shareholders as a “measure of FBD’s confidence in its strategy”.
The payment was increased to 17 cent per share, the insurer announced this morning. FDB said that it was sticking to its forecast of 70-80 cent earnings per share, as long as there are no “further exceptional weather events arising”.
FBD chief executive Andrew Langford said:
“These are robust results in a period significantly influenced by weather and an increase in claims frequency right across the Irish car insurance market.”
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That is the nature of insurance sure
As opposed to the insurance against nature.
These guys sicken me the way they insist on guaranteeing margins for themselves. Imagine a bike rental guy in the Aran Islands insisting on charging all tourists €50 per hour because ‘last year was a rainy summer’. FBD tried to hike mine but I went to Chill. The industry have the public over a barrel with the compulsory nature of their product. Its analogous to me placing a bet with a bookie, losing, and then robbing the place at gunpoint to get my money back. Yet governments around the world are afraid to stop them. Banks have the same ‘risk is not for us to suffer’ attitude.
That is all to do with Governments obsession with Corpocracy – the interest of the consumer always plays seconds fiddle to Corporations – why could shareholders not be told there had been a bad winter and dividend increases are being withheld for once – rather than effectively steal the losses
back off consumers.
They already hiked renewal premiums on my car and home insurance and that is why I’m no longer an FBD customer.
You’re right Jayo….it’s on the consumer’s interest to play insurance companies off one and other….I got my renewal from FBD a few weeks ago, checked around for another quote elsewhere, which in almost ever instance was coming in quite a bit cheaper….rang them back and told them that I didn’t want to move but because it was cheaper with someone else, that I had no other option…..they end up matching the other quotes!! Happy days!!
Pretty sure it’s FBD not FDB as it’s spelled in your headline……
Thanks Craig, that’s fixed now.
No… still FDB. ….
Thanks Brian, it might take a minute to update on all browsers.
They lost €20 million but still made €5.6 million. So how much have they made in the last. 5 years…..?
A lot…..and yet the greedy feckers will still want an increase.
What’s more….they will be allowed.
DISGUSTING!!!!!!!!!!
5.6 million is not a huge profit for a company that size.
Gangsters…
Sure just ask the government to set up a usc2 to help you out I’m sure they’ll oblige
No Nonsense.ie becomes FU.ie
have your say