Analysis:If yesterday's share price was anything to go by, investors were not impressed with FBD's results - the shares fell 2.2 per cent in what was overall a positive market, writes Claire Shoesmith.

Analysts, however, were more upbeat, saying the pressure on the underwriting business was to be expected in what is an increasingly competitive market. Concern was expressed, though, over the company's reference to increasing pressure on premiums at the end of last year and the fact that this had continued in the first two months of this year.

This, said Goodbody analyst Anna Lalor, was most likely a big factor in the share price decline. Analysts also pointed out that, while the net profit was ahead of the previous year, the figure was boosted by items that would not necessarily be repeated.

In particular, the higher-than-expected equity returns from the group's capital fund drew attention not only in the light of the recent negative stock market performance, but also in the context of why the company doesn't return more cash to shareholders.

The company was quick to point out that it constantly reviews its cash position, but it seems this issue will remain a focus for the future regardless.

The main challenge, however, will be how to cope with the increasing pressure on margins. This will become even more prevalent as the combined ratio of Irish insurers, which currently stands at about 78 per cent, rises to meet the European standard of the early to mid-90 per cents, according to analysts. The higher the combination ratio, the lower the margin, and as a result the more detrimental the impact on the bottom line.

Pressure seems to be the key word for FBD at the moment and in a what is a relatively static market, surviving this pressure could be difficult.