INSURERS are not protected from the worst of the recession, as FBD proved last week. Gross premiums written rose by a modest 0.3%, its first rise since 2007. However the company, which owns nononsense.ie, said there were limited opportunities for growth this year. Its motor business continues to be profitable at the underwriting level. The property insurance division was hit last year by a spike in claims and, despite premium increases, it produced a loss of €9.8m.
FBD’s leisure and property business, once perceived as its jewel, has turned into a millstone, with cumulative writedowns of more than 40% in the value of its land and villas in Spain. These impairments are now tapering toward an end at least. The shares are yielding more than 4% on dividends, with the balance sheet strong enough to sustain future payouts. Share price appreciation might prove more elusive.