FBD said that its investment income has remained positive as of the end of April, even as global financial markets proved volatile in recent months amid the Middle East conflict.
However, a spike in market interest rates – sending bond valuations, which have an inverse relationship with rates, lower – has resulted in the general insurer taking a paper loss against its bond portfolio. As this is an unrealised loss, it has been taken after the net income result and recorded as so-called comprehensive income.
In an update ahead of its annual general meeting in Dublin on Thursday, the Dublin-listed insurer also said in that its core insurance underwriting performance has been “solid” so far this year.
“Claims experience has been in line with expectations, and has not been significantly impacted by the weather conditions experienced earlier in the year,” it said.
READ MORE
FBD said it continues to see its combined operating ratio – a key measure of insurance underwriting profitability that compares claims and costs to earned premiums – to be in the “low 90s” per cent for the full year. A result below 100 per cent means an insurer is making a profit on writing insurance.
The company’s ratio last year amounted to 90.88 per cent, with a net €30.8 million hit from Storm Éowyn in January 2025, the most expensive insurance event in Irish history, partly offset by otherwise “strong underwriting profitability”, it said in March.
“FBD remains strongly capitalised with a solvency capital ratio in excess of our stated risk appetite. Our intention over time is to move closer to target capital levels while preserving the sustainability of our annual ordinary dividend and maintaining a robust capital position for our growing business,” said chief executive, Tomás Ó Midheach.
“We reiterate our confidence in our underlying profitability, our solid capital position, our future growth prospects and continue our focus on delivering value for our customers and our shareholders.”
