Hibernian group today announced financial results for the half year to 30 June. Hibernian group operating profit including life achieved operating profit was €127.1 million, representing an increase of 17% on the corresponding period in 2003 (2003: €108.4 million).
Hibernian group today announced financial results for the half year to 30 June. Hibernian group operating profit including life achieved operating profit was €127.1 million, representing an increase of 17% on the corresponding period in 2003 (2003: €108.4 million).
The components of group operating profit were €26.1 million (2003: €45.1 million) in life & pensions and €101 million (2003: €63.3 million) in general insurance. Life & pensions new business on an APE basis grew by 13% to €64.1 million (2003: €56.5 million), while general insurance gross written premium was down for the corresponding period to €450 million (2003: €505 million). Funds under management at 30 June were €8.1 billion.
Commenting on the interim results, Bryan Jenkins, chief executive of Hibernian group, said: “Overall the half year performance was good with positive underlying performance across our businesses.
In general insurance, the strong operating result reflects a combination of our disciplined underwriting, lower claims costs across the board and better than-expected weather claims experience. As a result of the improvement in profitability, the market dynamics are changing and we are experiencing an increase in competition.
Hibernian Life & Pensions, the third largest life and pensions provider in Ireland enjoyed very strong new business volumes during the half- year. Sales growth in term assurance and pensions was positive. However, operating profit was lower at €26.1 million due to a more cautious assessment of the future persistency environment, particularly on unit-linked pensions.”
Restating the group’s commitment to government-led initiatives to control costs Bryan Jenkins, said: “It is early days, but the success of initiatives like the newly operational PIAB together with more stringent enforcement of road safety legislation have the potential to lead to further reductions in claims and associated costs for our customers. Already, we have seen premiums for motor business fall to levels last seen in 1999.”
Hibernian’s continuing strategy in general insurance is to reward responsible customers through the provision of lower premium costs. For example, in private motor insurance the company last month announced an increase to its penalty points free discount from 10% to 17.5%. This move combined with the Ignition driver-training programme which offers successful drivers a discount of up to 40% on their premiums, continues to make a positive impact.
“In Hibernian Life & Pensions we provide an attractive product and a market leading range of successful investment funds. Our strategy is to offer competitive products, which reflect the changing priorities of our customers. The recently launched Guaranteed Fund responds to investor caution, which had been affecting life single premium sales. It includes a five year capital guarantee and initial market feedback has been positive,” Bryan Jenkins concluded.
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For reference contact :
Marie-Therese Culligan, group media relations manager
Tel: + 353 1 607 7820
Mob: 087 2367008
Appendix: Hibernian group
6 months to June 2004 financial summary
| 6 months to 30 June 2004 €m | 6 months to 30 June 2003 €m | |
|---|---|---|
| Irish group | ||
| Gross premium income | 792 | 835 |
| Operating profit (incl life achieved profit) | 127.1 | 108.4 |
| Life & Pensions | ||
| Achieved operating profit | 26.1 | 45.1 |
| Embedded value | 799 | 763 |
| New business contribution | 14 | 15.7 |
| Gross premium income | 342 | 330 |
| New business premium income (APE) | 64.1 | 56.5 |
| General Insurance | ||
| Gross written premium income | 450 | 505 |
| Operating profit | 101 | 63.3 |
| Investment Management | ||
| Funds under management | 8,071 | 7,190 |
Notes to editors:
- Hibernian is part of Aviva plc the world's fifth largest insurance group globally (based on gross worldwide premia)
- Aviva is one of the leading providers of life and pensions products to Europe and has substantial businesses elsewhere around the world. Its main activities are long-term savings, fund management and general insurance. The Group has 56,000 employees serving 30 million customers world-wide
- Hibernian is Ireland's largest composite insurer, ranked first for general insurance and top three for life and pensions
- A photograph is available by ISDN
- Hibernian news releases are also available on www.hibernian.ie