FBD says customer premiums will continue to fall in 2022

Insurer FBD has seen its gross written premiums rise 1 per cent so far this year as it says it has reduced prices for customers.

The average premium fell 1 percent, FBD said in a statement on Thursday.

Private motor vehicle premiums were on average 9 percent lower in the first three months of this year than in the same period of 2021.

The number of written policies increased by 2 percent.

Speaking ahead of the company’s annual general meeting today, Chief Executive Officer Tomás Ó Midheach said the company is still seeing a rise in property and motor claims.

But it said the personal injury claims were “benign,” just over a year after the government’s personal injury guidelines came into effect.

“The underwriting performance of our business for 2022 so far is in line with expectations.

“While property and motor claims inflation continues to be observed, the injury claims experience has been benign and there have been no significant weather events.

“We continue to monitor the implementation of the Personal Injury Policy and have reflected the impact observed to date in the prices charged to customers.

“Overall, we remain confident in underlying profitability, future growth prospects, the Company’s capital strength and in our ability to continue to provide excellent service to our customers.”

However, Mr Ó Midheach said that so far this year investment markets have “been difficult” and impacted the valuation of FBD’s risky asset and bond portfolios, resulting in negative returns.

The provisions we have made for Covid-19 business interruption claims for pubs remain at €44m, net of reinsurance, FBD confirmed.

The company has paid 30 million euros in interim payments for business interruption claims after the High Court ruled in January that it must cover losses to pub customers even if venues were allowed to partially open.

The firm said it is working with plaintiffs in the remaining cases “on the steps needed to provide final clarity for all parties involved.”

 

Source: independent

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