Insurance company FBD credited a reduction in claims for a jump in operating profits but warned that the Government must do more in the fight against compo culture.
Operating profits increased to €86.8 million compared to €67.3 million in the previous half year. Underwriting income rose to €52.1 million from €42.5 million, reflecting new business growth and a favourable claims outcome.
However FBD's property interests in Spain are experiencing more challenging times as the property market appears to have peaked.
FBD said intense price competition and savings from lower claims are driving down premiums and dismissed claims that the drop in insurance costs had bottomed out.
While consumers are benefiting from the reduction from savings FBD called on the Government and its agencies to deliver on its end of the recommendations set out by the Motor Insurance Advisory Board (MIAB).
Commenting on the results, Philip Fitzsimons, FBD's chief executive, said that while the results benefited from a particularly favourable claims outcome which is unlikely to be repeated the company is confident of achieving satisfactory full year results.