27th Feb 2020 13:50
(Alliance News) - Irish insurance company FBD Holdings PLC on Thursday significantly increased its dividend payout as it recorded a more than two-fold increase in annual profit.
The stock was trading flat at EUR8.81 each on Thursday afternoon in London
For 2019, FBD reported pretax profit of EUR112.5 million, up from EUR50.1 million in 2018. Revenue dipped to EUR394.6 million from EUR396.0 million.
The "excellent" performance was attributed to a strong underwriting result, benign weather, a rebound in investment markets and strong claims settlement activity.
Underwriting profit increased to EUR93.7 million from EUR63.4 million in 2018.
Gross written premiums for 2019 fell to EUR370.1 million compared to EUR371.5 million in 2018. In 2017, gross written premiums had been higher still, at EUR372.5 million.
FBD's combined operating ratio was 72.3%, down from 81.2%. This figure relates to underwriting profit, with a figure below 100% denoting profitability, so the lower the better.
The loss ratio was 46.4% in 2019, down from 56.3%, while FBD's expense ratio was 25.9%, up from 24.9% year-on-year.
Dividend for the year was doubled to 100 cents per share from 50 cents.
Looking ahead, FBD said it is preparing to limit the operational impacts on its supply chain following Brexit. However, it said that it remains uncertain about how the UK's exit from the EU will impact its customers around the country.
It is targeting a combined operating ratio in the low 90s going ahead.
By Ife Taiwo; [email protected]
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