Hibernian reports 3.4% rise in profits

Hibernian Group yesterday announced a 3.4 per cent rise in operating profits in 2005, to €264 million.

Operating profit for life and pensions was down to €13.4 million, from €57.4 million, while profits for general insurance were up to €250.6 million, from €198 million. Hibernian is the Irish subsidiary of the London-listed Aviva group.

The group said the more than 74 per cent drop in life and pensions operating profits was due to a number of factors.

These were the reduced margins in new business, a less positive business mix. The figure also reflected an upward revision of the number of policies that would lapse in the future( known as the future persistency experience).

It was also affected by "forecast improvements in annuity mortality experience" or a revised assessment as to the longevity of people with annuities from Hibernian..

Group chief executive, Bryan Jenkins, said the performance in general insurance was underpinned by "a combination of our disciplined underwriting, lower claims costs and fewer than expected weather related events."

Average premiums are now back at the levels they were at in 1999, a spokeswoman for the group said.

"We are optimistic about the potential for our life and pensions business following the successful completion of our joint venture with AIB," Mr Jenkins said.

The general insurance market remained competitive leading to a reduction in net written premiums to €728.5 million, from €800.8 million, the group said.