FBD, Ireland’s only indigenous general insurer, has approved an almost €27 million special dividend, which will be paid to shareholders later this year after a sharp rise in profits against a backdrop of declining insurance claims costs.
In its half-year report, the group said its gross written premium increased by 4 per cent to €258.4 million in the first half of the year compared to the same period in 2025.
At the same time, FBD incurred claims of €147.8 million, down €81.8 million from the first half of 2025, due to “improved weather” in 2026.
This was partially offset, it said, by an increase in the severity of motor insurance claims, “with a higher incidence of vehicle write-offs, driven by the growing prevalence of advanced vehicle technologies and increasingly complex repair methodologies”.
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Still, FBD reported a more than doubling of its first-half profits before tax to €43 million.
Against this backdrop, it said the board has approved a special dividend of 75 cent per ordinary share. The payment, which will cost the group €26.96 million, will be paid in October.
The group has paid out hundreds of millions to shareholders since 2022.
In a statement, FBD chief executive Tomás Ó Midheach said the group continues to operate in a volatile environment, “with geopolitical tensions and market volatility creating challenges for businesses and investors alike”.
He said: “Despite this backdrop, our investment return through the income statement continues to grow.”
“Looking ahead to the second half of 2026, we remain focused on maintaining our momentum,” Ó Midheach added.
In a broker note, Davy Stockbrokers analysts Diarmaid Sheridan and Thomas Ryan said FBD’s results were well ahead of expectations.
“We will review our forecasts post results, with guidance conservatively remaining unchanged,” they said. “The next phase of FBD’s strategic development is likely to assess the sustainable level of its ordinary dividend, which in our view is likely to increase.”
FBD has maintained consistently paid out ordinary dividends of €1 per share since 2021. “Given the changes in the business over that time and the strong capital position, an increase may arise,” the analysts said.
