An improvement in underwriting performance pushed the pre-tax profit of agricultural insurance group, FBD, up by 12.2 per cent to £7.77 million, in the six months ended June 30th, 1997. Shareholders are to benefit with a rise in the interim dividend from 3.35p to 3.7525p. The growth will be "sustained in the months ahead", said the chief executive, Mr Paul O'Callaghan. FBD is looking for more stable market conditions following the consolidation in the industry. This will "benefit both insurers and policyholders", he said.

FBD is implementing plans to extend and strengthen its customer base. "We have consistently displayed our capacity to grow profitably" and FBD is to consolidate its position. Mr O'Callaghan told The Irish Times that FBD is "not really in the market to be bought". The way forward, he added, is to continue to grow the group's premium income which increased by 7.2 per cent in the first half. Nor does he see FBD buying smaller players as they are "very expensive to buy".

FBD said the latest results on the technical account improved from £3.47 million to £5.19 million, reflecting an improvement in underwriting losses, from £4.52 million to £4.07 million, and a rise in investment income from £8.79 million to £10.0 million. The realised gains on investments fell from £2.88 million to £1.83 million. FBD increased its turnover from £69 million to £75 million in the first half. Earnings per share grew from 13.16p to 15.31p, while net assets, partly reflecting unrealised gains, increased from 156.22p to 184.20p. The higher dividend is covered a comfortable 4.1 times by available earnings.