Hibernian Group today published its review and results for the 12 months ended 31 December 2004. Group operating profit was €281.8 million, a 34% increase on last year (2003: €211 million).
Hibernian Group today published its review and results for the 12 months ended 31 December 2004. Group operating profit was €281.8 million, a 34% increase on last year (2003: €211 million). The components of Group operating profit were €57.4 million in Life and Pensions (based on European Embedded Value) and €224.4 million in General Insurance (2003: €80.5 million, €130.5 million). Life and Pensions new business on an APE basis was up 9% to €125.6 million while General Insurance premiums were down slightly at €835 million (2003: €115.4 million, €936 million).
Commenting on the results Bryan Jenkins, group chief executive, said: "Our 2004 performance is characterised by good solid results, with positive performance across all our businesses. The strong operating result in general insurance reflects a combination of our disciplined underwriting, lower claims costs and fewer than expected weather related events.
"The company has continued in its efforts to reduce the cost of insurance cover, particularly motor insurance. Our customers have seen continued premium reduction, including further discounts for those who remain penalty point free."
The reduction in claims has allowed Hibernian pass on the benefit to customers, including:
- -Rewarding penalty point free private motor customers with an additional saving of 7.5%, bringing to 17.5% the total discount available
- Expanding our Ignition inexperienced driver scheme to include provisional licence holders for the first time
- Insurance rate reductions in excess of 10% in the commercial sector
Bryan Jenkins also restated Hibernian's commitment to continue to work with its customers and the government to maintain the momentum created by the insurance reform agenda: "We are very conscious at the moment of the need to ensure that the Personal Injuries Assessment Board (PIAB) operates effectively, and succeeds in reducing the cost of insurance. We are fully behind the PIAB and call on Ministers McDowell and Martin to recommit to delivering the reforms intended with the establishment of the PIAB."
Despite tough market conditions and heavy competition throughout most of the year, Hibernian Life & Pensions maintained its third position with a market share of 11% (based on new business). These conditions did impact on profits as margins on products reduced due to competition.
Profit figures were also impacted by a one off restatement of the future persistency experience of the business to reflect recent market changes. This year also marks a move to reporting life and pensions results on a European Embedded Value (EEV) basis. Hibernian's parent company Aviva has been spearheading a move by all European life companies to report results on an EEV basis.
Aviva plc shareholders entitled to receive a dividend converted to euro will receive €0.2308 per share. The payment date of the dividend will be 17 May 2005 and the record date will be 18 March 2005.
| 12 months to 31 Dec 2004 €m | 12 months to 31 Dec 2003 €m | |
| IRISH GROUP | ||
| Gross premium income | 1,540 | 1,604 |
| Operating profit | 281.8 | 211.0 |
| LIFE & PENSIONS | ||
| Operating Profit (European Embedded Value - EEV) | 57.4 | 80.5 |
| Embedded Value | 859 | 811 |
| New Business Contribution | 26.6 | 39.5 |
| Gross Premium Income | 705 | 668 |
| New Business Premium Income (APE) | 125.7 | 115.4 |
| GENERAL INSURANCE | ||
| Gross Written Premium Income | 835 | 936 |
| Operating Profit | 224.4 | 130.5 |
| INVESTMENT MANAGEMENT | ||
| Funds under management | 8,817 | 7,781 |
Press contact:
Kela O'Riordan, 01 617 8164, 086 606 8842, kela.oriordan@hibernian.ie
Notes to editors:
- Hibernian is part of the Aviva plc, the fifth 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