FBD sees improved performance despite storm claims
Source - SMW
FBD Holdings continues to see a steady improvement in its financial performance despite the impact of Storm Ophelia and other recent weather-related claims.
The group said that since Storm Ophelia hit Ireland on 16 Oct it had been working with customers to compensate them for the damage caused to their homes, farms and businesses.
It said: 'So far and as the number of claims start to level off, these have come from all over the country with the largest number to date coming from counties Cork and Tipperary.
'While it is still too soon to present a final tally of both the total number and gross cost of claims from the storm, our new reinsurance programme provides good cover in extreme events and this will mitigate the net cost to FBD.
'Our cost of claims (net of reinsurance) will be €2.5m.
'However, the overall net impact to the income statement from this storm is expected to cost in the range of €4m-€6m after the payment of an additional reinsurance premium to reinstate our catastrophe weather limits for the balance of the year.'
Chief executive Fiona Muldoon said: 'Despite the impact of Storm Ophelia and other recent weather related claims, we continue to see a steady improvement in our financial performance from both better risk selection and improved price adequacy.
'Absent further severe weather in 2017, we are now on course to deliver our targeted "low double digit return on equity" earlier than previously indicated.
'If the remainder of 2017 is reasonably benign in weather terms, we believe this return is achievable in this financial year.'