Average insurance premiums at FBD rose by 5.4% last year, according to the company’s annual results.

The insurer reported pre-tax profits of just over €81 million – up from just under €66 million a year earlier.

The figures were boosted by higher income from investments, as underwriting profits fell from €90 million in 2022 to €76.5 million.

The average private motor premium rose by 2.9%, while commercial business premiums were up 5.3%.

The insurer said that it lifted prices to offset the increased cost of motor damage claims stemming from higher labour, parts and paint costs.

Construction inflation

Home-insurance premiums jumped 10.8% and farm premiums increased by 5.6%, with FBD blaming the increases mainly on higher sums insured, due to construction inflation.

Claims rose by just over €14 million to €238 million, reflecting increasing costs due to inflation, increased frequency in property and motor damage, and an increase in the number of policies.

FBD said that the average cost of injury-claims settlements was down 3% in the last 12 months.

Guidelines

It said that claims being settled under the new Personal Injuries Guidelines continue to be more than 40% lower in value when compared to the previous Book of Quantum, but added that it would take time for the full impact to be known.

The firm says that it is awaiting a Supreme Court judgment on a challenge to the new guidelines.

The insurer said that court backlogs had eased last year.