Insurer FBD said on Friday evening that it expects to report a “significantly” better than expected €100 million profit for last year, as it indicated it will manage to shift more of the costs arising from Covid-19 business interruption claims from pubs to its reinsurers.
As of the middle of last year, FBD had set aside €67 million of provisions to cover expected costs stemming from a landmark Covid-19 business interruption pubs test case in February last year, leaving it on the hook to pay compensation to 1,000 pubs. However, it said that it expected total claims from the cases to amount to €183 million, with most of it being borne by reinsurers.
FBD also said in its statement that following extensive discussions with its reinsurers, it has secured a “favourable impact on previously booked reserves net of reinsurance”. This clearly indicates that it is on track to release some of the €67 million provision, boosting its profit figure for 2021.
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