Insurer FBD Holdings maintained a strong trading performance in the second half of 2007, according to its latest results, and is on track to ensure growth momentum next year.
According to the company, the average forecast for operating earnings per share (EPS) for the current year to end December was 311 euro cents per share.
"Barring any significant end-of-year claims events, we are comfortable with the markets' expectation," FBD said in a trading statement.
Goodbody Stockbrokers analyst Anna Lalor said it forecast full-year operating EPS at 295.7 cents and saw FBD's statement as "positive". The group's earnings have been expected to come under pressure as new entrants into the Irish insurance market drive policy prices down towards European norms.
FBD said in relation to 2008 operating earnings in its underwriting business, key factors of influence will be the price cuts in 2007 and insurance pricing and claim costs within the industry. "As regards pricing, there is evidence that the decline in premium rates has abated," it said.
NCB Stockbrokers said FBD's comment on the pricing environment was "clearly good news".
"(It) points to a turn in the cycle for general insurance rates in Ireland," NCB said in a research note.
FBD said it expected to have "greater visibility" on pricing when it announced full-year results for 2007 on March 5.
Commenting on 2008, it said: "The group is positioned to maintain growth momentum in its businesses."
FBD said claims in the second half of 2007 had improved "somewhat" on the first half due in part to a lower incidence of weather-related claims."Other costs are running at levels similar to the first half. We expect the underwriting result to be on budget," it said.
In its non-underwriting activities, income was lower than originally budgeted due entirely to the impact of the weakness in financial markets.