FBD Holdings, the Irish insurance company, has announced a significant increase in its pretax profit for the first half of 2023. The company attributes this growth to a combination of insurance revenue growth, improved investment returns, and reduced expenses.
During the six months ending June 30, FBD recorded a pretax profit of €39.5 million ($43.4 million), a substantial increase compared to the restated figure of €2.5 million reported for the same period in 2022.
The company has accounted for a provision of €7.5 million related to the cost associated with an obligation arising from the deduction of subsidies from the Irish state under the Covid-19 business interruption policy.
FBD's gross written premiums reached €206.4 million, up from €192.4 million in the previous year. This increase is primarily attributed to higher insurance revenue, which rose to €194.5 million from €186.1 million. The company's retention rate played a key role in this growth. Additionally, FBD's insurance service result witnessed a significant rise, reaching €65.4 million compared to €44.1 million previously.
The investment performance during this period was notable, with total investment returns amounting to €8.4 million, marking a substantial improvement from losses of €15.3 million.
FBD's combined operating ratio, a metric that reflects the proportion of revenue consumed by costs, stood at 81.1% for this period, showcasing an improvement compared to the 86.6% recorded in the previous year.
The board of FBD Holdings has approved the proposed special dividend of 100 European cents that was announced in March.
Tomas O Midheach, Chief Executive of FBD Holdings, expressed confidence in the company's strategy to become a digitally-enabled and data-rich organization, emphasizing that progress in this area remains on track.
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