FBD Holdings Plc sees €17m profit before tax for half year 2025
Some other highlights of the interim financial statements include a special dividend approved of 75c per ordinary share, return on equity (ROE) of 6% and combined operating ratio (COR) of 94.2% reflecting the impact of January 2025 weather events.
This was offset by underlying underwriting profitability and favourable prior year reserve development, according to the company.
January 2025 weather events are expected to have a net cost of €30.6 million (including reinstatement premium), according to the report.
Established in the 1960s by farmers for farmers, FBD has become a leading general insurer serving the needs of farmer, business and retail customers.
It has 34 offices throughout Ireland and a multichannel distribution strategy.
Its half yearly report also shows that gross written premium (GWP) increased by 10% to €249 million. Insurance revenue increased by 11% to €235 million.
Almost two-thirds of the average premium increase of 6.1% relates to customers increasing their level of insurance cover and changing business mix.
There was policy count growth of 3.8% across the 'Farmer', 'Business' and 'Retail' sectors, with over half of the increase coming from 'Farmer' category.
FBD Holdings stated that there is allocated capital of €4 million for share repurchase over the remainder of 2025.
"Our capital position remains strong with a Solvency Capital Ratio (SCR) of 202% (unreviewed) after allowing for the special dividend and share repurchase compared to 197% at 31 December 2024 (which allowed for January 2025 weather events)," the report outlined.
Another highlight for the company was that FBD was winner of the 2025 CSR / Community / Green Loyalty Programme at the Irish Loyalty Awards.
Commenting on the results, group cheif executive, Tomás Ó'Midheach said: "We are pleased to announce a strong underlying performance for FBD for the first six months of 2025.
"Our customer focused strategy continues to deliver, with the strong momentum built over recent years carrying through into 2025.
"...Customer retention remains consistently high, underpinned by the strength of our nationwide branch network, which provides trusted local expertise and support to the communities we serve.
"We welcome the recent publication of the government's Action Plan for Insurance Reform 2025-2029. Building on our support for the first action plan, we remain committed to this next phase and will continue to work closely with all stakeholders to help deliver progress on key priorities," the CEO said.
He admitted that the first half of this year was not without challenge and that severe weather events, including heavy snowfall in January and Storm Éowyn led to a significant surge in claims activity.
"It is during these times that our customers rely on us the most," Ó'Midheach continued.
"As of today, circa 90% of the weather-related claims have been resolved with the remainder progressing towards finalisation. Despite volatility in investment markets, our investment return through the Income Statement has remained positive year to date.
"Maintaining a strong capital position while delivering sustainable dividends continues to be one of our key goals.
We are very pleased to confirm our board [has] approved a special dividend of 75c per ordinary share. Our solvency capital ratio of 202%, which, after distributions, remains in excess of our target risk appetite, reflects the financial strength and stability of our business," he said.
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