Profits at insurer FBD dropped sharply in the first half of the year, almost halving compared to the same period in 2024, as severe weather events led to a spike in claims.
The company reported pre-tax profits of €17 million for the six months to June, down from €32 million a year earlier. The decline was largely attributed to the financial impact of Storm Éowyn and heavy snowfall in January, which together drove a surge in claims from policyholders.
“Severe weather events, including heavy snowfall in January and Storm Éowyn, led to a significant surge in claims activity,” said Tomás Ó Midheach, Group Chief Executive of FBD. “It is during these times that our customers rely on us the most.”
According to the company, around 90% of weather-related claims from the period have already been settled, with the remainder progressing toward completion. The net cost of the January weather events alone is estimated at €30.6 million.
Despite the profit decline, the insurer saw growth in revenue. Insurance revenue rose 11% to €235 million, while gross written premium (GWP) increased by 10% to €249 million in the first half of the year.
Mr Ó Midheach emphasised the company’s ongoing commitment to maintaining a strong capital position and rewarding shareholders. “Maintaining a strong capital position while delivering sustainable dividends continues to be one of our key goals,” he said, announcing that the board had approved a special dividend of 75 cent per ordinary share.
FBD’s Solvency Capital Ratio stood at 202% after distributions—well above its target risk appetite—reflecting what Mr Ó Midheach described as the business’s “financial strength and stability.”
Looking ahead, the company said it remains focused on sustaining momentum in the second half of 2025, despite economic uncertainties.
“While mindful of ongoing uncertainties in the external environment, we are confident that our relationship-driven approach, supported by a digitally enabled, data-enriched organisation, will continue to deliver long-term value for our customers and stakeholders alike,” Mr Ó Midheach added.
The results underscore the financial strain that extreme weather can place on insurers, even as revenue streams remain robust. Industry analysts note that while increased claims weigh on profits, strong capital buffers and premium growth leave companies like FBD well positioned to manage future shocks.
