INCREASED competition led to higher underwriting losses at AGF Irish Life for 1995, with the company reporting marginally lower pre tax profits, down to 12.6 million from Pounds 12.8 million.
Underwriting losses increased by Pounds 4.2 million to Pounds 27.4 million on flat premium income of Pounds 240.6 million.offset some of the under writing loss.
Operating profits fell by 5.5 per cent to Pounds 4.8 million. A 1 per cent improvement in realised gains to Pounds 7.8 million helped the pre tax line, reducing the fall in profits to 1.5 per cent.
Profits after tax fell by 8.4 per cent to Pounds 10.6 million with earnings per share down to 47.3p mom 51.4p. Despite this fall, dividend to shareholders French company Assurance General de France owns 66 per cent while Irish Life owns 30 per cent increased to Pounds 5.3 million from Pounds 3.5 million in 1994.
AGF Irish Life is the holding company for the Insurance Corporation and Church and General.
Group chairman Dr Robert Willis said that the group maintained "good progress in its strategic and financial objectives" in highly competitive markets.
Group general manager for finance Mr Pat Kennedy said the arrival of direct insurers intensified competition in an already competitive market. "We were not prepared to write business at a loss and turned away business that did not meet our profit criteria", he said.
With investment returns this year unlikely to be as strong as in 1995 and intense competition on the premium side, maintaining profits will be an issue for the industry this year, he said.
AGF Irish Life is currently implementing a restructuring programme to reduce costs.
:quality(70)/cloudfront-eu-central-1.images.arcpublishing.com/irishtimes/VR3765MFOBH2NMV2QNICYDF67M.png)