Hibernian Group today published its review and results for the 12 months ended 31 December 2003. Group operating profit was €224 million, an 18% increase on 2002.
Hibernian Group today published its review and results for the 12 months ended 31 December 2003. Group operating profit was €224 million, an 18% increase on 2002. The components of Group operating profit were €93.2 million in Life and Pensions and €130.5 million in General Insurance. Life and Pensions new business on an APE basis was down 29% to €115.4 million while General Insurance premiums were marginally down at €936 million.
“The year under review was most notable for the determined and sustained approach towards reducing the cost of general insurance cover” said Bryan Jenkins, group chief executive.
“It is clear that Government led initiatives, combined with our own actions, have led to a reduction in claims. In motor insurance we have seen aggregate reductions of over 10% in premium rates. If the momentum created by the insurance reform agenda, spearheaded by the Motor Insurance Advisory Board, is maintained, and we would encourage all parties to ensure that it is, then responsible customers should see this reflected in the cost of their general insurance.”
The reduction in claims has allowed Hibernian pass on the benefit to customers, including:
- Rewarding penalty point free private motor customers with a saving of 10% on their insurance premium
- Increasing to 25,000 the number of places on our Ignition inexperienced driver training scheme, where insurance savings of up to 50% can be achieved
- Developing an SME Partnership whereby businesses can save up to 25% on their insurance through risk sharing and proactive risk management (the Hibernian Riskasyst™ package)
“It is hoped that ongoing efforts to change the environment in which insurers operate, including the introduction of the PIAB and more stringent enforcement of road safety legislation, will see a continued downward trend in both claims and the associated legal costs. This will enable Hibernian to continue to reduce customers’ insurance premiums in 2004, and to pursue the development of new and innovative measures to reduce risk,” said Mr Jenkins.
The strong performance in General Insurance benefited from very benign weather in 2003 with resultant low levels of storm damage, a reduction in claims frequency and an improvement in the risk profile of the business reflecting our strict underwriting disciplines.
In Hibernian Life & Pensions, achieved operating profit was almost €26m lower than 2002 at €93.2m. This partially reflects a 29% fall in new business levels in 2003. Notwithstanding this fall, new business margins were maintained at 28.5%.
The fall in new business reflected two main factors; 2002 included €37m of sales from SSIAs which closed in 2002 and the impact of low investor confidence, particularly evident in single premium sales.
-ends-
Appendix: Hibernian Group 12 months to December 2003 financial summary
| 12 months to 31 Dec 2003 €m | 12 months to 31 Dec 2002 €m | |
|---|---|---|
| IRISH GROUP | ||
| Gross premium income | 1,604 | 1,712 |
| Operating profit (incl. life achieved profit) | 223.7 | 190.1 |
| LIFE & PENSIONS | ||
| Achieved Operating Profit | 93.2 | 119.0 |
| Embedded Value | 786 | 725 |
| New Business Contribution | 33.0 | 46.3 |
| Gross Premium Income | 668 | 772 |
| New Business Premium Income (APE) | 115.4 | 162.3 |
| GENERAL INSURANCE | ||
| Gross Written Premium Income | 936 | 940 |
| Operating Profit | 130.5 | 71.1 |
| INVESTMENT MANAGEMENT | ||
| Funds under management | 7,781 | 6,757 |
Press contact:
Mary Cleary, +353 1 6347601, mary.cleary@hibernian.ie
Notes to editors:
- Hibernian is part of the Aviva plc, the seventh largest insurance group worldwide based on gross written premium
- Hibernian is Ireland’s largest composite insurer, ranked first for general insurance and top three for life and pensions
- A photograph of Bryan Jenkins is available by ISDN
- Hibernian news releases are also available on www.hibernian.ie