Insurer FBD has told shareholders that it expects a written High Court ruling on a test case linked to business-interruption insurance in mid-June.
Speaking at the company’s annual general meeting (AGM), CEO Tomás Ó Midheach said that FBD had kept its estimate of costs related to the issue at €42 million.
The costs arise from a High Court ruling in 2021 in a test case involving four pub owners.
The court ruled that the businesses were entitled to be compensated under their policies for the disruption caused by COVID-19 restrictions.
FBD has reached agreement with two of the four pub owners, but is awaiting the High Court ruling on the amount of losses to be covered before aiming to reach a final agreement with the remaining two.
“This ruling is anticipated to provide certainty in respect of outstanding issues, and enable us to pay the balance of claims to publicans,” said Ó Midheach.
Shareholders also heard that FBD’s underwriting performance so far this year had been in line with expectations.
“While inflation continues to be experienced in property and motor-damage claims, injury-claims experience has been benign and there were no significant weather events,” the CEO said.
He added that gross written premium had risen by 8% compared with the same period last year, due to more policies being written, and a higher average premium.
“We are monitoring the implementation of the Personal Injuries Guidelines on an ongoing basis, and continue to reflect the impact seen to date in the prices charged to customers,” Ó Midheach said.