Insurance group FBD Holdings said its operating earnings per share for 2009 would be ahead of expectations, as loss ratios improved and market rate increases compensated for falling market volumes and cover.
The company said it had maintained a "solid trading performance" in "challenging" market conditions, delivering operating profits in the second half of 2009 to date.
"Insurable risk across the Irish insurance industry continues to decline in line with the level of economic activity and consumer spending," the company said in an interim statement.
"Market rate increases have continued in the second half of 2009 to date, compensating for some of the fall in market volumes and cover."
Meanwhile, the decline in premiums has moderated in the second half, the company said, adding that it would keep pricing under review.
A reduction in the number of road accidents and deaths in Ireland led to lower frequency of motor injury claims made to FBD, with continuing improvement in the underlying loss ratio.
The group said it had was continuing attempts to increase its market penetration through developing commercial lines, and its online offerings, NoNonsense.ie and FBD.ie, which unveiled an insurance renewal facility in September.
"Take-up to date is ahead of expectations," the company said.
FBD's property and leisure businesses in Ireland and Spain yielded operating profits and cash flows in the second half of the year to date, the company said, despite the "very challenging" market conditions.
"Over-supply in the marketplace is the key challenge facing the property and leisure businesses in Ireland and market capacity needs to reduce to match falling customer demand," the statement said.
The group said it expects to deliver operating profits in both underwriting and non-underwriting businesses in 2009.
