Full Year Results 2020
Tomás O'Midheach, Chief Executive Officer
"All businesses faced extraordinary challenges in 2020 and, as we navigate towards a “new normal”, we can reflect on a resilient performance over a uniquely challenging year for FBD.
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. We are considering the impact of this judgement with our reinsurance partners and are confident about a satisfactory outcome.
We continue to support our 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. "
Key Performance Stats
For the Year Ended 31st December 2020
Compared with €112m profit for 2019
101% Combined Operating
Increase compared with 72% equivalent figure for 2019 as a result of BI claims provision
€358m Gross Written
Excluding €12m in rebates GWP is in line with €370m written in 2019
1% Return on
Compared with 30% ROE for 2019
1095c Net Asset Value
Increase compared to 1,068c equivalent figure for 2019
Some positives have come out of 2020 as we improved our ability to serve our customers in the ways they increasingly want to interact with us. Our enhanced digital capabilities led to more online purchases and an increased number of customers joining our business and staying with us. New opportunities launching in 2021 will include, the broadening of the Bank of Ireland relationship to 3 include general insurance as well as life and pensions, and the successful evolution of other existing partnerships.
The insurance market continues to be very competitive and we have seen the premiums paid by our customers decreasing, particularly in Motor. We foresee a period of economic uncertainty ahead as the economic impact of the pandemic becomes known. We will adapt and change to ensure we are able to meet the evolving needs of our customers.
We are very supportive of the Government’s insurance reform agenda to reduce claims costs and consequently insurance premiums for farmers, businesses and consumers. I am delighted to take the helm of the only Irish insurer in the market, with a reputation second to none in customer service, earned over more than 50 years in business. I joined FBD in January and have been hugely impressed by the determination and ability of my new colleagues. The core of the business is strong with good underlying profitability, future growth prospects and resilient capital strength. We intend to build on this strong base to deliver more for all stakeholders in the years ahead. "
" All businesses faced extraordinary challenges in 2020 and, as we navigate towards a “new normal”, we can reflect on a resilient performance over a uniquely challenging year for FBD. "