Insurance company profits have surged 1,300% with 17 general insurance businesses making combined operating profits of €227 million in 2017, new figures show.

Profits have jumped from €16 million in 2016, according to Insurance Ireland, with cover for drivers proving particularly profitable.

The 17 firms mopped up €125 million from private and commercial motorists as premiums jumped by 70% in the four years to 2016.

Rates

From 2013 to 2016, average motor insurance premiums increased by 70%. Car insurance costs remain 50% above the rates that applied ten years ago.

Property insurance showed a profit of €84.3 million, but general insurers lost €24.6 million on liability insurance last year.

Irish businesses are finding it increasingly difficult to fund liability insurance, with many festivals and outdoor events and activities shutting down as a result.

Escalating costs

In Waterford, Tramore’s Promenade Festival and the Ballina Salmon Festival in Co Mayo have both been axed due to escalating insurance costs.

A total of €417 million in business was written for liability insurance in 2017, compared with €1.8 billion car insurance premium income, and €870 million in property premiums.