Profit before tax at insurer FBD Holdings fell by 33% year-on-year from €110m to €74m in 2022.

Gross written premiums rose 3.4% to €383m, excluding the impact of pandemic premium rebates, with the average premium up 0.6%.

The company said private motor insurance premiums fell 7.2% for the year while commercial business premiums rose 5.6%, due in part to increased coverage, and farm premiums increased 2.6% as a result of inflation in constructions costs.

The average tractor premium rose 5.5% due to a higher proportion of newer tractors and the increasing value of second-hand tractors, while the average home premium was up 4.1% due to inflation.

The company increased customer numbers in terms of policies by 2.8% while retention levels of existing business increased 1.5% to reach a six-year high.

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Earnings per share were down from 274 cent to 181 cent. The Business Interruption best estimate declined by €2m to €42m net of reinsurance.

Claims volumes rose 6% year-on-year driven by a 27% uplift in motor damage notifications, reflecting higher traffic and inflation reducing drivers' ability to cover the cost of minor damage.

Overall, net claims incurred increased €8.5m to €154.2m, again due to the higher frequency and inflationary impact of motor damage and property claim despite the value of personal injury awards falling 40%.

FBD saw losses through the income statement of €10.4m for both equity and fixed income investments.

Tomás Ó Midheach, group CEO of FBD, said the results were "strong" despite the negative investment returns, and that discipline in underwriting supported by reserve development had delivered "a healthy underwriting profit".

"It is encouraging to see growth in customer and policy numbers. More customers are staying loyal to us which is testament to the value we offer them and the continuing customer service our people deliver," he added.

"We have increased our relationship with customers in Business and Farm this year and intend to build on this momentum in 2023 by continuing to differentiate ourselves through our product and service offering."

Ó Midheach warned of "uncertainty" in the claims market as the company awaits a challenge to the Personal Injury Guidelines, adding that it had seen reductions in average settlement costs feeding through to pre-litigation channels.

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