FBD, the Republic’s only indigenous general insurer, saw profits fall by almost half in the first six months of the year as claims soared due to Storm Éowyn in January.
The group made €14.8 million over the period, which was down from just over €28 million over the same period of 2024.
Insurance revenue was 10.6 per cent higher at €235.1 million, with gross written premium up 10.1 per cent at €248.9 million. There was growth across all sectors, channels and products.
However, insurance service expenses almost doubled from €129.1 million to €257 million.
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Claims increased by €96.1 million mainly reflecting poor weather experience in January due to Storm Éowyn and the January cold spell. FBD said it expects the month’s weather events to cost it €30.6 million.
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The group also incurred insurance acquisition expenses of €45.4 million over the six month period.
Ordinary shareholders’ funds amounted to €473.9 million, which was down from €483.2 million. The board has approved a special dividend of 75 cent per ordinary share.
Policy count growth was 3.8 per cent across farmer, business and retail sectors, as farmer policy count increased by 5,700 policies on the same period last year.
FBD said it is seeing “strong acquisition and retention” relating to its home insurance offering with a 7 per cent increase in policy count.
Retention rates “remained consistently high”, it said, while there was also “strong new growth” in its business sector.
Average premiums increased by 6.1 per cent across the portfolio with almost two-thirds of the increase put down to the change in mix and increasing liability and property coverage, as well as inflationary impacts.
Private motor average premium increased by 5.4 per cent, which the company attributed to “high levels of inflation” as well as “frequency” of claims over the past number of years.
Home and farm average premiums increased by 9.3 per cent and 10 per cent respectively, reflecting increases in property sums insured, mostly through indexation, as rebuild costs continued to rise.
The group described Storm Éowyn as “an unprecedented weather event” setting new records for wind speeds at various locations. As of June, 90 per cent of claims notified had been fully resolved with the remainder progressing towards finalisation, FBD said.
The company also noted that US president Donald Trump’s so-called Liberation Day tariff announcements had “caused stress” to financial markets.
“While progress on trade deals have helped markets recover, it may take some time for the economic damage already inflicted to manifest itself,” the group said.
“It is clear there has been a major shift in the global economic landscape and Ireland as a small open economy is particularly exposed to continued deglobalisation trends.
“The intent to rebalance the global taxation landscape in the US’s favour poses risks to corporation tax receipts that are heavily reliant on US multi-nationals.”
It said an escalation in these risks may impact on the group in the form of market, economic and inflation risk.
The average cost of property claims increased by 3 per cent, and was 37 per cent higher compared to June 2021. This was due to disrupted supply lines, skills shortages, materials and parts inflation, the group said.
Injury notifications decreased by 2 per cent year-on-year, but motor injury notifications were 7 per cent higher than prior year, with the majority of the increase relating to commercial motor cover.
The average cost of injury claims settlements reduced by 1 per cent year-on-year. The injury settlement rate was up 7 per cent compared to 2024 driven by an increase in activity through the litigation channel.
Motor damage notifications increased by 5 per cent, primarily driven by weather related damage claims.
Group chief executive Tomás Ó Midheach said the first half of the year “was not without challenge”.
“Severe weather events, including heavy snowfall in January and Storm Éowyn led to a significant surge in claims activity,” he said.
