FBD Holdings plc, the general Irish insurer, today issued an Interim Management Statement trading update covering the period from 1 July 2009 to date and said it expects to deliver operating profits in both its underwriting and non-underwriting businesses in 2009. The insurer said it is "confident that it is well positioned to deliver profitable growth and superior returns to shareholders going forward."

FBD said market rate increases have continued in the second half of 2009 to date, compensating for some of the fall in market volumes and cover. However, the insurer says rates have not yet reached, levels at which it is appropriate for FBD to seek to grow business volumes. Therefore, it has continued to prioritise underwriting discipline over volume growth. 

FBD estimates that its market share year to date is similar to that of last year. The fall in premium income in the second half has moderated relative to that recorded in the first half. 

The company launched an on-line insurance renewal facility on http://www.fbd.ie/, which it says has improved both customer service and efficiency and take-up to date is ahead of expectations.

There has been a reduction in the number of road accidents and deaths, resulting in lower frequency of motor injury claims. The loss ratio has improved in the second half of 2009 to date and there is a continuing improvement in the underlying loss ratio (excluding claims that are exceptionally large or weather related). FBD says the loss ratio also benefited from its action on rates and its initiatives to reduce the cost of claims. 

FBD says property and leisure businesses in Ireland and Spain have delivered operating profits and cash flows in the second half of 2009 to date.