In a statement, FBD guided that its full-year operating earnings per share will be between 70 and
FBD said that motor claims became more frequent because increased economic activity has led to more drivers on the roads and vehicles travelling further.
"The group will continue to monitor claims to ensure that risks are adequately priced and take further action, if necessary. Growth in economic activity will have a positive effect on FBD in the medium term, particularly given the group's track record of outperforming the market. However, it will have a higher-than-expected impact on profitability in 2014 and the first half of 2015," FBD said in a statement.
In addition, FBD said the cost of bad weather over the winter has increased by
"Premium levels in the Irish insurance market have begun to benefit from the recent growth in economic activity. While the market has continued to be competitive, rates have hardened for both car insurance and business insurance," FBD said.
FBD added that its gross premium written to date is 4% ahead of the corresponding period last year year, primarily through growth in car and commercial insurance. Over 60% of the increase in premium is attributable to average premium and the remainder to policy volume. FBD said that it expects its share of the insurance market is likely to have increased further in the year to date.
Aside from its news on underwriting, FBD said that its actual investment return in the year to date is ahead of budget, while its property and leisure joint venture, which it established with
FBD shares were Friday quoted at
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