FBD has expressed its support for a recent Supreme Court ruling that validated the legal position of judicial guidelines aimed at lowering payouts for personal injury claims, citing confidence and validation of the insurer’s presumptions about the emerging system.
The insurance company issued a preliminary report pertaining to trade in the first quarter, ahead of its general yearly meeting happening this Thursday. Despite weather-induced challenges, notably January’s Storm Isha, FBD reported firm performance in the first fiscal quarter.
CEO Tomás Ó Midheach revealed the company experienced an approximately 9% surge in gross written premium (GWP) compared to the prior year. He attributed this to an uptick in new policies across business, retail, and notably, the agricultural sector.
FBD remains optimistic regarding the intrinsic profitability and prospects of the business, according to Mr Ó Midheach. In the context of the rising cost of claims related to property and vehicle damage, the recent Supreme Court judgment affirming Personal Injury Guidelines (Delaney v Injuries Resolution Board) provides much-needed certainty and supports FBD’s assumptions about decreasing expenses concerning injury claims, he explained.
Last month, the Supreme Court rejected a challenge to judicially-endorsed instructions that reduce the compensation primarily for minor injuries. These guidelines, in operation since April 2021, are legally binding. However, any further revision will necessitate new legislation. These stipulations are pending assessment by the Judicial Council, and it is anticipated that amendments will be suggested.
Despite new regulations, claims expenditure continues to ascend, largely due to the general price inflation of auto parts for repairs and escalating construction costs over recent years.
Addressing investment returns, Mr Ó Midheach characterized it as “positive”, referring to a heightened income from the reinvestment of bond portfolios and the favourable performance of equity markets. This positive trend, however, has been counterbalanced by the “negative” performance of the company’s bond portfolio amid market “volatility”.
He assured that FBD remains a powerfully financed entity with a solvency capital ratio surpassing the determined risk appetite. The company plans to keep interacting with stakeholders and ensure constant surveillance of its financial position, aiming at moving nearer to the goal of capital levels while preserving the sustainability of its common annual dividend and keeping a solid capital stance for its expanding business.