The Irish insurance market continues to shrink in the first quarter of 2013, FBD said today, but its business was performing slightly ahead of last year.

In an interim management statement, FBD said although Irish domestic demand had stabilised, it was unlikely to show significant return to growth in the short-term.

“It is unlikely that the Irish insurance market will show any growth in 2013,” the company said.

However, gross premium written to date at FBD was marginally ahead of the same period in 2012, as policy volume increased at its No Nonsense unit and average revenue per policy was maintained.

There was evidence that business insurance rates were hardening, the company said, and the group made progress in managing claims costs. The company is also continuing to focus on agri customers and developing its business insurance links with customers through brokers.

“While an improved attritional loss ratio and the absence of severe weather events to the date of this statement are positives, large accident claims experience is ahead of prior year and historic norm,” FBD said. “As a result, the loss ratio is higher than both market expectation and the level achieved in 2012.”

However, full-year large claims is expected to return to normal levels.

The Group re-affirmed its previous guidance of full-year 2013 operating earnings per share of between 145 and 155 cent.