Hibernian profits up over 20 per cent

Operating profits at Hibernian Insurance are up 21 per cent in the first half of the year

Operating profits at Hibernian Insurance are up 21 per cent in the first half of the year. Profits for the six months to the end of June stood at €150m compared with €123.7m for the same period last year.

New business at Hibernian's Life and Pensions division climbed 16 per cent to €74.2m but the company's general insurance premium income was down.

"In general insurance profits grew despite a fall in premium income," said Hibernian's CEO, Bryan Jenkins. "This strong result reflects a combination of disciplined underwriting and lower claims costs" he said.

Hibernian's British parent, Aviva reported a 21 per cent rise in first-half core profits to £1.3 billion.

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The increase - up from almost £1.1 billion on the same time last year - was fuelled by strong earnings from its general insurance business, Aviva said.

Overall, Aviva's life operating profit rose 5 per cent to £857 million, but profit in the United Kingdom, its single largest market, fell 5 per cent, as sales dropped to £4.2 billion from £4.3 billion in the same period last year.

Aviva is relying on cost cutting and higher sales in its continental European life business to drive profits.

Aviva said its combined ratio, a key measure of general insurance underwriting profitability, had improved to 95 per cent from 97 per cent amid low claims and a tight lid on costs.