FBD Holdings PLC, an insurance company, has reported a profit before tax of €39 million for the first half of 2023, compared to €3 million in the same period last year. The company's Combined Operating Ratio (COR) was 81%, reflecting continued underwriting discipline and positive prior year reserve development. FBD also approved a special dividend of 100 cent per ordinary share. Insurance revenue increased by 4.5% to €195 million, and the written policy count increased by 2.6%. The company's capital position remains strong, with a Solvency capital ratio (SCR) of 217%.
The largest element of FBD's insurance revenue is gross written premium (GWP), which increased by 7.3% to €206 million. The insurance service result increased by €21 million to €65 million, driven by increased insurance revenue and a reduction in insurance service expenses. FBD also reported a profit through the income statement of €8 million and a profit through other comprehensive income of €9 million. The expense ratio increased to 27.1%, primarily due to inflationary increases in staff costs, IT, and utility costs.
FBD's CEO, Tomás Ó Midheach, commented on the results, stating that the business continued to grow and deliver for all stakeholders. He highlighted the company's focus on meeting the needs of customers and providing a personalized service, which has led to strong customer retention and growth in customer and policy count numbers. Ó Midheach also mentioned the challenging economic conditions and the impact of inflation on property and motor damage claims. He welcomed the final judgment on the Business Interruption test case, which allows the company to finalize valid Covid-19 related claims and state subsidies.
The company remains strongly capitalized, with a capital ratio above its stated risk appetite. As previously announced, FBD approved a special dividend of 100 cent per ordinary share. Ó Midheach expressed gratitude for the support of the board and the commitment and hard work of the FBD team. He emphasized the company's strategy to become a digitally enabled, data enriched organization that delivers an excellent customer and employee experience.