Hibernian reported a strong performance in its motor insurance business in the first half but it had further bad news for hard-pressed young motorists and those in the heavy goods sector.
The company said that both sectors were still not adequately rated and were likely to face further increases in premiums.
"I would see considerable firmness in those sectors for the rest of the year," Hibernian's head of underwriting, Mr Dick O'Driscoll, said.
The premiums paid by young drivers have gone up by 10 per cent in the last year, with the increases weighted particularly toward those under 21.
"I don't see anything to suggest that will change," Mr O'Driscoll said.
Motor insurance accounted for more than half of all premium income generated by Hibernian's general insurance division in the six months to the end of June. Gross written premium in the sector increased by 30 per cent to €77.4 million (£61 million) or 52 per cent of the general insurance total while the net underwriting loss improved to €4.2 million from €6.6 million.
Mr O'Driscoll said motor remained an important sector for the company, particularly as there were 50 per cent more cars on the roads than was the case five years ago.
