A strong performance in its general insurance division was one of the main factors behind a 23 per cent increase in Hibernian's operating profit to €22.7 million (£17.9 million) in the six months to the end of June.
The general insurance division - which includes motor and house insurance - reported strong revenue growth of 21 per cent and recorded an improved underwriting loss of €4.5 million compared with €10.1 million last year.
Overall, operating profit in the division rose to €16.7 million from €10.3 million in the first half of 1998.
During the period, the company estimates that it increased its share of the general insurance market from 12.5 per cent to 13.7 per cent.
Hibernian said its pensions business also performed well in the first-half but overall operating profit in the life and pensions area was down by €2.0 million at €6.4 million despite a 22 per cent rise in total premium income.
The drop in profits was mainly due to a cluster of health claims which had to be provided for in the first six months and a weaker investment performance than in 1998.
"The investment market was very buoyant in 1998 but less so in 1999," said the group finance director, Mr Cecil Hayes.
The value of the company's investments increased by just €2.0 million compared with €12.0 million in the first half of 1998. The company's reinsurance business in the IFSC also reported a drop in operating profit to €1.4 million from €2.4 million, reflecting the competitive state of the international reinsurance market.
As a result, overall pre-tax profit slipped to €24.7 million from €30.5 million a year earlier.
Hibernian said there had been no further developments regarding the 28 per cent stake held by Commercial General Union (CGU) in the financial services group.
"We've had no approach from CGU. We are not in discussions either formally or informally with them," said the chief executive, Mr Adrian Daly who retires from his position in October. He will be replaced by Mr Pat McGorrian who added: "We are very much the junior in this matter. The ball is very much in their court."
However, the management team said Hibernian's focus was on getting on with the business, continuing to drive the bottom line forward while keeping an eye out for acquisitions.
The company, which reported a 26 per cent increase in operating earnings per share (EPS) to 31.9 cents, will pay an interim dividend of 7.62 cents (6.0 pence) per share, a 17 per cent increase on last year.
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