FBD Holdings has said it has seen a 9.2% decline in policy volumes in the year to date, which has been offset by a 9.1% rise in average rates.
In an interim management statement, the company said it would continue to prioritise profitability over growth.
FBD said its underwriting action taken in the past 18 months has had a positive effect, with improvements in claims frequency experienced despite the increased level of activity in the wider economy.
“This improvement in attritional claims has been offset somewhat by increased large claims experience since the last market update,” today’s statement said.
The company said the claims settlement environment remains challenging, although the situation since the end of the second quarter has been in line with its expectations.
FBD said that the industry will continue to be loss making for 2015 and 2016, adding that in its view, the market has not increased rates sufficiently to compensate for the significant deterioration in the claims environment.
It also said its capital position has improved since the last market update. As announced in September, the group said it had agreed a deal with Fairfax Financial Holdings which will see it invest €70m in the group.
It has also reached agreement with workers to close its defined benefit scheme to further accrual, while the proceeds from the sale of the property and leisure joint venture will be injected into FBD Insurance by way of fresh equity capital.
“The effects of these capital initiatives is that FBD Insurance has capital in excess of its Solvency 11 capital requirement in advance of its effective date of January 1 2016,” the company said.
Shares in the company were lower in Dublin trade today.
RTE News
