O’Donnell calls on insurance companies to immediately pass soaring profits back to hard pressed customers in reduced premiums
Fine Gael Senator Kieran O’Donnell has called on insurance companies to immediately pass soaring profits back to hard-pressed customers through reduced premiums.
Seanad Finance Spokesperson Senator O’Donnell was speaking after he revealed that top insurance companies reported profit spikes well beyond their targets for 2018.
Senator O’Donnell said: “At yesterday’s Finance Committee hearing on insurance, I questioned Allianz, Axa and FBD in detail on their profit margins and was startled by their answers and the revelations.
“The three insurance companies – who are edging on 50% of Irish market share – totalled a combined super profit of €70 Million for 2018 over their targeted profit margin.
“This is an incredible figure and absolutely must be passed back to customers in reduced premiums with immediate effect.
“The figures revealed yesterday show Axa, Allianz and FBD earning super profits for 2018 of €50m, €7m and €20m respectively above their targeted profit margins of 5%, 6% and 8% res
pectively.”
“Their actual profits here were €89m, €37m and €50m with profit margins of 11.4%, 7.4% and 13.56% respectively.”
“We cannot have a situation where insurance companies continue blaming others for high insurance premiums, when at the same time they are making super profits themselves.”
Figures revealed yesterday:
Axa FBD Allianz
Premiums Income €770m €372m €499m
Profit €89m €50m €37m
Actual Profit Margin 11.56% 13.4% 7.4%
Target Profit Margin 5% 8% 6%
Target Profits €39m €30m €30m
Super Profits €50m €20m €7m
Super Profit Margin 6.56%. 5.4%. 1.4%.