Hibernian profits rise 15% amid drop in claims

Insurer and pensions group Hibernian said profits in the first six months of this year rose by 15 per cent to €109 million due to fall in insurance claims.

The insurer, part of the British-based Aviva, said higher insurance profits offset loses from its life and pensions operations, which fell 23 per cent to €45 million. This reflected slower economic growth and a slump in the equity markets coupled with strong SSIA sales, the company said.

Profits from Hibernian's insurance unit soared 83 per cent to €63.3 million. Part of this rise in profits was attributed to reduced accident frequency due to the introduction of penalty points last year.

Mr Bryan Jenkins, Hibernian chief executive, said the group remained committed to a 10 per cent premium reduction for motorists who have no penalty points.

But the company, which will examine the rate of road traffic deaths on November 1st, says it reserves the right not to introduce the scheme if the penalty points scheme has failed to significantly cut the number of deaths on Irish roads.

The company's commitment is also subject to Hibernian gaining access to the National Driver File, where details of points levied on individuals are recorded.

Premium income from the life and pensions unit fell 31 per cent to €330 million. New business premium income - the industry standard performance measure - almost halved to €56.5 million.

The company said it has not increased motor insurance premiums for private motorists in the first six months of the year.

Sales of PRSAs to date were described as disappointing, Mr Jenkins said.