Irish Insurer FBD posted a worse than expected 8.5 percent drop in first half earnings today but said it still expected to meet the market's full-year expectations despite fierce competition.
Shares in the company fell almost 5 percent after it said operating earnings per share fell to 158.45 cents in the six months to the end of June from 173.11 cents a year earlier.
That compared to forecasts of 170 cents from three analysts polled by Reuters.
Revenues from premiums rose to €205.4 million from €204 million a year earlier as the company's customer base grew, but lower underwriting margins dented profits.
"We achieved strong and profitable growth in target markets, with high volumes of business offsetting premium reductions in the half year," FBD Chief Executive Philip Fitzsomons said in the statement.
"The group expects to achieve full year market expectations for operating earnings,"
FBD has profited from unsustainably high insurance premiums in recent years and profits are expected to decline steadily over the coming years as mounting competition drives the cost of insurance in Ireland down towards the European norm.
"Today's interim results indicate that the Irish general insurance market remains difficult for FBD as intense price competition persists, reducing margins," NCB analysts wrote in a research note.
Shares in the company, which like other Irish financial stocks have been hit by a slowing domestic property market and global stock market weakness, were down 2.3 percent at €27.10 this morning having earlier fallen as low as €26.4
That compared to a 0.7 percent drop for the broader Irish market.