After raising its premiums by 20 per cent last year, policyholders with Hibernian Insurance are facing another substantial increase in the current year.

Hibernian managing director Mr Pat McGorrian said: "I would be surprised if there is no increase this year and I would be surprised if the increase is more than single figures."

Mr McGorrian was speaking after Hibernian - the Irish arm of British insurance giant CGNU - reported operating profits for 2001 of €156 million (£123 million), a rise of 28 per cent.

Gross premiums rose 37 per cent to €1.93 billion, with life and pensions sales up 26 per cent to €104 million and operating profits 13 per cent higher on €127 million.

General insurance premiums rose from €643 million to €845 million with operating profits recovering from €7.2 million to €26.3 million.