Profitability maintained as cycle turns

The Irish market’s performance is all the more remarkable given that in the last few years premiums have fallen in all the major lines of business. Despite a slight increase last year, total Irish net motor premiums fell by 12% compared to 2003. Liability and property premiums declined by 10.1% and 5.4% respectively

First-half results from a few of the larger companies and recently published market statistics for 2006 indicate that the Irish non-life insurance market may have turned but remains exceptionally profitable. However, the extent of reserve movements makes it more difficult to judge the true state of the market.