Hibernian group, Ireland's largest composite insurance company today announced its full year results for the year ended 31 December 2007 showing operating profit of €352.9m (2006: €188.9m).
- Group operating profit of €352.9m, up by 86.8%
- Hibernian Life Holdings grows faster than the Irish market
- Hibernian General Insurance increases policy count by c. 31,000
- 2007 defined by new product launches, awards for customer service and continued value for customers
Hibernian group, Ireland's largest composite insurance company today announced its full year results for the year ended 31 December 2007 showing operating profit of €352.9m (2006: €188.9m). Hibernian's life and pensions business grew faster than the market and now holds a market share of 17.3%. This is reflected in a significantly increased EEV operating profit of €116m (2006: - €63.3m) for Hibernian Life Holdings. Hibernian's general insurance business continued to maintain its market leading position and delivered a policy count increase of c.31,000 policies. However reduced premiums and increased claims costs in general insurance have resulted in a lower operating profit of €236.9m (2006: €252.2m) for Hibernian General Insurance.
The results follow a year of significant sales and marketing activity, product innovations and investment in operating structures across the Group. The results represent another very strong performance for Hibernian, its management team and staff. Hibernian is the Irish subsidiary of the world's fifth largest insurance company, Aviva and its activities span general insurance, risk management, pensions, life assurance, and personal financial services.
Stuart Purdy, Hibernian group chief executive, commented: "2007 was characterised by intense competitive activity in all our markets and Hibernian's success in growing market share and delivering such strong financial results confirms our ability to deliver the products and services that consumers want and need. Our investment in innovative new products, our ongoing commitment to excellent customer service, our capability and efficiency will continue to see Hibernian capitalise on current and future market opportunities."
On Hibernian Life & Pensions, Stuart Purdy said: "With a growth rate of 28%, Hibernian Life Holdings has grown faster than the market and has delivered operating profits of €116m. This was driven by enhanced product offerings and growth in new business across our distribution channels. In 2007 we made further progress on our long-term objective of improving margins. The focus on improving cost efficiency in our business and on improving the profitability of our products will continue in the coming years.
"The success of the joint venture between Hibernian and AIB to form Hibernian Life Holdings continued to deliver results and 2007 saw a further strengthening of our relationship. The integration of the two businesses is now complete with sales from both companies now being delivered on a single new business platform and operational efficiency remains a key focus.
"Hibernian Life Holdings also grew its market share from 16.7% in 2006 to 17.3% this year (excluding investment only business) and total sales on an annual premium equivalent basis (excluding investment only business) were up 28% to €359.5m (2006: €281.2m). While 2008 will be a challenging year, Hibernian is continuing to roll out new products to the market and the company is well placed to capture an increasing share of the life and pensions market."
On Hibernian General Insurance Stuart Purdy said: "Hibernian confirmed its position as market leader and general insurer of choice for consumers in Ireland as evidenced by a significant increase in new business. 2007 saw our policy count grow by c.31,000 policies and Hibernian's distribution capability remains a significant competitive advantage. We continue to lead the market in improving customer access to a full range of insurance products and launched a number of innovative new products including the Hibernian Driving School and Hibernian Rescue. These innovations were also combined with improved value for money for customers and motor premiums have now fallen for the fifth year in a row. These reductions in premiums, particularly in the private motor sector, exerted a negative influence on Gross Written Premium (down to €716.7m) and on operating profits, which fell to €236.9m (2006: €252.2m)."
-ends-Appendix: Hibernian Group
12 months to 31 December 2007 financial summary
12 months to
31 Dec 2006
€m
12 months to
31 Dec 2007 €m
HIBERNIAN GROUP
Gross premium income
1,492.9*
1,383.1
Operating profit
188.9
352.9
LIFE & PENSIONS
European Embedded Value (EEV) operating profit
(63.3)
116.0
Embedded Value
1,281.8
1,325.7
Gross Premium Income (IFRS basis)
703.3*
666.4
New Business Premium Income (APE) **
288.6*
359.5
GENERAL INSURANCE
Gross Written Premium Income
789.6
716.7
Operating Profit
252.2
236.9
*On a pro forma basis.
**Excluding investment only business