Insurer FBD Holdings reported a pre-tax profit of €74m in its annual results, down from €110m recorded in 2021.

While this was below 2021 levels, this pre-tax profit was higher than the €70m the insurer had said it was expecting in a post-market update last month.

This came as a result of a low injury claims frequency, lack of significant weather events and positive prior reserve development, the insurer said.

FBD has now proposed paying shareholders a dividend of €35.9m, unchanged from last year at 100c per share.

Gross written premiums rose 3.4pc last year to €383m, excluding the impact of pandemic related rebates.

Average premiums rose by 0.6pc across the portfolio, with private motor premiums declining by 7.2pc in 2022.

Net claims rose by €8.5m to €154.2m last year as a result of higher frequency and inflationary impacts in both motor damage and property claims.

The insurer reported a return on equity of 14pc, as well as an unaudited solvency capital ratio of 226pc.

The return on FBD’s investment portfolio was down to 8.6pc last year, with the insurer pointing to a challenging year for investments. This was attributed to inflation, rising interest rates and the energy crisis.

Underwriting profit was €85.7m, down from €95.2m, equating to a combined operating ratio of 74. 5pc.

Expenses rose last year as a result of employee cost increases and a rise in utility and IT costs, FBD said.

The Covid-19 business interruption best estimate, net of reinsurance, reduced by €1m to €42m, with the insurer agreeing settlements with two of the four pubs in the test case.

The insurer said it now expects “a reasoned ruling” from the judge early this year to assist with reaching an agreement with the two remaining pubs “to pay the balance of claims.”

Last year, FBD reported that it had paid out €30m in interim payments of for business interruption claims following a High Court ruling in January 2022 that it must cover losses for publican customers even when venues were allowed to partly open.

“It is encouraging to see growth in customer and policy numbers,” said group chief executive Tomás Ó Midheach, adding that business and farm customers had risen strongly in 2022.

“There is still uncertainty in the external claims environment as we await the outcome of the challenge to the Personal Injury Guidelines and we see how they operate in practice,” he added.

The insurer reported last year that there is an expected reduction in claim costs as a result of the new guidelines.

“We are now seeing reductions in average settlement costs feeding through in pre-litigation channels,” he said.