FBD has today reported profit before tax of €4.8m for the year to the end of December
Finance Insurance

FBD raises provision for lockdown insurance claims to €65m

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FBD Holdings said it has expanded its arrangement for the aftermath of the High Court bar business interference cases administering to €65m, which incorporates assessed net cases expenses of €54m and €11m accepted reinsurance reestablishment charge.

It said that gross cases costs are presently assessed to be about €150m.

The back up plan said the impacts of the judgment are being considered with its reinsurance accomplices to conclude the reinsurance recuperation position.

FBD today announced benefit before duty of €4.8m for the year to the furthest limit of December.

It said the figure mirrors a “solid basic business execution” and incorporates positive earlier year claims save advancement of €23m and a speculation return of €10m.

fueled by Rubicon Project

It had announced benefits of €112.48m in 2019.

FDB said that average premiums were down 3% across the portfolio during the year, with private motor premiums down 5.7%, farm down 1.5%, home down 2.2% and commercial up 2.8%. 

In order to assist customers during the Covid pandemic, its forbearance measures included rebates for motor and commercial customers of €12m, removing administration and cancellation fees on motor and home to support continued cover and farm relief services along with the IFA.

Tómas Ó’Mídheach, the group’s new chief executive, said that all businesses faced extraordinary challenges in 2020.

“The challenges were highlighted by the recent judgement from the Commercial Court in respect of business interruption claims for Public House policies.

“The team at FBD remains determined to meet our customer obligations and we have commenced paying interim payments for all valid claims and will endeavour to settle claims as quickly as possible,” the CEO said. 

“We are considering the impact of this judgement with our reinsurance partners and are confident about a satisfactory outcome,” he added.

Tómas Ó’Mídheach said that FDB continues to support its customers with forbearance measures and commercial rebates continue to be provided to affected businesses. 

“Our employees have risen to the challenges of the pandemic with excellent service levels maintained and productivity unaffected,” he added.

The FBD boss also said that some positives have come out of 2020 as the company improved its ability to serve customers in the ways they increasingly want to interact with it. 

“Our enhanced digital capabilities led to more online purchases and an increased number of customers joining our business and staying with us,” he said. 

“New opportunities launching in 2021 will include, the broadening of the Bank of Ireland relationship to include general insurance as well as life and pensions, and the successful evolution of other existing partnerships,” he added.

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