Bad weather claims cost FBD €12m

Insurance group FBD said the cost of claims resulting from the freezing conditions in January amounted to €12 million.

Insurance group FBD said the cost of claims resulting from the freezing conditions in January amounted to €12 million.

However, in an interim management statment issued today, the group said that the incidence of large claims was lower in the first three months of 2010 than in the same quarter a year earlier.

The insurer said premium rates have continued to harden in the Irish insurance market in the first quarter, particularly for home and business insurance.

It added that motor rates have been slower to increase and are not yet at the point where it would be prudent to grow our volumes. Gross premium written increased in the first quarter, the first such increase since the first half of 2007, the company said adding that although policy volume continued to decline, the rate of decline decreased significantly and was outweighed by the impact of rate increases.

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The group said that economic uncertainty remains, volatility has reduced significantly in the Irish economy.

"Barring exceptional claims events, the board believes that the Group will deliver 2010 operating earnings per share in line with the consensus of analysts' expectation," it said.