The Hibernian Group today announced financial results for the half year to 30 June 2005. Group operating profit including life achieved operating profit, restated to take account of the new IFRS/EEV reporting basis, was €150.0 million, representing an increase of 21% on the corresponding period in 2004 (2004: €123.7 million).
The Hibernian Group today announced financial results for the half year to 30 June 2005. Group operating profit including life achieved operating profit, restated to take account of the new IFRS/EEV reporting basis, was €150.0 million, representing an increase of 21% on the corresponding period in 2004 (2004: €123.7 million).
The highlights of Hibernian’s results are (see appendix for details):
- 21% increase in total group operating profit to €150 million
- Life and pensions new business Annual Premium Equivalent (APE) up 16% on same period last year to €74.2 million
- General insurance premium income down to €394 million
- General insurance operating profit up to €120.3 million
- Funds under management increased to €9.4 billion
Commenting on the interim results, Bryan Jenkins, chief executive of Hibernian Group, said: "We have seen six strong months of growth across the business. In general insurance profits grew despite a fall in premium income; this strong result reflects a combination of disciplined underwriting and lower claims costs. The company has been consistent in its efforts to put the customer first and to reduce the cost of insurance cover while simultaneously rewarding responsible driving, as a result over the last year many customers have seen their motor insurance return to 1999 levels."
Bryan Jenkins added: "The top line general insurance result comes as no surprise as it reflects the usual cyclical nature of the business and the reduction in the cost of insurance over the last twelve months, while the increase in operating profits reflect a more benign claims environment."
With regard to Hibernian Life & Pensions, Bryan Jenkins said: "We remain the third largest life and pensions provider in Ireland and have enjoyed strong new business volumes during the half-year, despite the fact that market competitiveness has kept our margins down. Results were helped by strong growth in single premium pension sales, including winning a number of large pension contracts. Single premium investment was also very positive, buoyed by Hibernian’s market leading Guaranteed Fund."
As with the 2004 annual results earlier this year, these interim results also mark 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.
-ends-
For reference contact:
Mary Cleary, tel 01 634 7601, mary.cleary@hibernian.ie
(Kela O’Riordan is on holiday)
Appendix:
Hibernian Group
6 months to June 2005 financial summary
| 6 months to | 6 months to | |
| IRISH GROUP | ||
| Operating profit | 150.0 | 123.7 |
| LIFE & PENSIONS | ||
| Operating Profit (European Embedded Value – EEV) | 29.7 | 23.1 |
| European Embedded Value | 871.1 | 818.3 |
| New Business Contribution | 12.5 | 17.7 |
| New Business Premium Income (APE) | 74.2 | 64.1 |
| GENERAL INSURANCE | ||
| Gross Written Premium Income | 394.0 | 450.0 |
| Operating Profit | 120.3 | 100.6 |
| INVESTMENT MANAGEMENT | ||
| Funds under management | 9,465 | 8,071 |
Notes to editors:
- Hibernian is part of Aviva plc the world’s sixth largest insurance group globally (based on gross worldwide premia)
- Hibernian is Ireland’s largest composite insurer, ranked first for general insurance and top three for life and pensions
- 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 60,000 employees serving 30 million customers worldwide
- Hibernian news releases are also available on www.hibernian.ie