Mr. Tomás O'Midheach:

I thank the Chairman. In my brief opening statement, I will introduce FBD and touch on topics of interest to the committee. I was appointed chief executive officer in January 2021. I am joined today by my colleagues, Ms Kate Tobin, chief underwriting officer, and Mr. Jackie McMahon, chief claims officer. FBD was established in the 1960s by farmers for farmers and has built on those roots in agriculture to become a dedicated general insurer serving the needs of our agricultural, small business and consumer customers throughout Ireland. More than 900 people are employed by FBD across 24 counties. We are Ireland's only remaining indigenous general insurer and our business is entirely focused on the Irish market. We hold approximately 10% of the liability, motor and property insurance market in Ireland, as measured by share of gross written premium and we have approximately 500,000 policyholders.

We fully understand and appreciate the impact the Covid-19 pandemic has had, and continues to have, on our customers. During 2020, FBD provided approximately €12 million in rebates to our commercial and motor customers. We continue to provide rebates to impacted commercial customers, at a total cost of €4 million thus far in 2021. With regard to business interruption, it was evident from the outset of the Covid-19 pandemic that differing points of view existed concerning the application of business interruption insurance under FBD's public house insurance policy. In order to determine liability and provide clarity and quantum, we supported the intervention of the courts. We worked in a collaborative manner to ensure the process was carried out as efficiently as possible, with FBD covering the reasonable costs of all parties involved in the case. As the committee is aware, judgment in the case was handed down by the Commercial Court on 5 February. That judgment has provided the necessary clarity in regard to policy cover. FBD fully accepts liability and we have moved quickly to engage with affected customers. Interim payments of more than €11 million have been made as we await the final resolution from the courts. There is a further court hearing scheduled in July to determine how the final elements of claim settlements are to be backdated.

Many publicans in Ireland have been loyal and valued customers of FBD for many years. We are thankful for their ongoing custom during this challenging period for them. We are proud that our retention rate among those customers remains high. We are very supportive of the Government's insurance reform agenda to reduce premiums for consumers, borrowers and businesses. The average premium for FBD's private car customers has reduced by approximately 20% since 2017. We continue to monitor our claims experience and claims costs closely, and we are committed to reducing premiums. This year, we particularly welcome the adoption and implementation of new Judicial Council guidelines for personal injuries awards, which is a very positive step. While we have yet to see the new guidelines reflected in awards by the PIAB or in the courts, we have been proactive in reflecting their assumed future impact on the premiums currently being quoted to our customers.

I must mention the ongoing competition law investigation by the Competition and Consumer Protection Commission, CCPC, into the private motor insurance sector. FBD takes compliance with the competition rules very seriously and is, of course, working in good faith with the CCPC on its investigation. We will endeavour to assist the committee as far as possible but, as members will appreciate, we are constrained in terms of what we can say around sensitive competitive dynamics such as pricing, including potential price changes, and our confidential commercial strategy. I look forward to any questions or queries members might have.