Hibernian to honour pledge on penalty point discount

Hibernian Group yesterday confirmed that it would stick to its pledge to offer penalty point-free drivers a 10 per cent cut in their premiums from the autumn, but the company expressed concern at the recent increase in serious road accidents.

Chief executive Mr Bryan Jenkins reaffirmed Hibernian's commitment to offering the reduction to motorists with no penalty points from November 1st.

However, finance director Mr Tony O'Riordain told The Irish Times the insurer was concerned that gains made since the penalty points system's introduction were being eroded.

"The improved behaviour is something that has to be maintained, and that is something that is down to enforcement," he said.

Now owned by British-based Aviva, Hibernian yesterday unveiled interim results showing a 15 per cent rise in group operating profit to €108.9 million.

Gross premium income for the first six months of 2002 fell to €835 million from €958 million. The group had a marked fall in life and pension sales, which it blamed on strong special saving incentive account (SSIA) sales in 2002, slowing economic growth and stock market performance.

Achieved operating profit at Hibernian Life and Pensions slipped from €58.7 million in the six months to end June, 2002, to €45.1 million. Mr Jenkins said the fall in new business was partly offset by an increase in margins to 28 per cent.

Aided by an improved performance in the motor business, the general insurance division's operating profits grew from €34.6 million in the first half of 2002 to €63.3 million this year.

Mr O'Riordain said the improved performance in general insurance was aided by the fact that Hibernian had no large payouts on flood insurance in this year's first half, whereas bad weather in the 2001/02 winter left it with a flood-damage bill of €10 million.

Total written premiums at Hibernian's parent, Aviva, stood at £15.7 billion sterling (€22.5 billion) at the end of the first half, while achieved operating profit before tax was £828 million.