DUBLIN – Irish insurer FBD more than doubled the money set aside to cover lockdown-linked claims to 65 million euros ($79 million) after it lost a test case brought by four publicans over a policy that included business-interruption losses.
Ireland’s High Court ruled on Feb. 5 that the publicans were entitled to be indemnified for losses incurred while shut for large parts of the past 11 months because of COVID-19 restrictions. FBD had sold the policy in question to about 1,300 publicans.
FBD estimated in July that the claims would cost 30 million euros [$36.4 million] and said on Friday that the increased provision included estimated net claims of 54 million euros [$65.6 million] and a further 11 million euros [$13.4 million] assumed for a reinsurance reinstatement premium.
It said the effects of the judgment were being considered with reinsurance partners to finalize how much they will cover of gross claims costs – including legal and other expenses – that are currently estimated at about 150 million euros [$182.2 million].
The court is still considering the how to quantify the policyholders’ losses.
FBD’s full-year profit before tax fell to 4.8 million euros [$5.8 million] in 2020, down from 112.5 million euros [$136.6 million] a year earlier, Ireland’s only domestically listed insurer said on Friday, mainly as a result of the increased provisions.
($1 = 0.8235 euros) (Reporting by Padraic Halpin; editing by David Goodman)
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