Monday 26 September 2016

FBD plans to cut costs by €7million

Published 28/10/2015 | 02:30

Eddie Downey, President IFA and fellow shareholders at last week's FBD extraordinary meeting.
Eddie Downey, President IFA and fellow shareholders at last week's FBD extraordinary meeting.

FBD Holdings chairman, Michael Berkery, confirmed the company will be engaging in a cost-cutting programme as it works to try return the insurance firm to profit.

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Mr Berkery was speaking at the company's extraordinary general meeting last week when shareholders approved the decision to sell the 50pc stake in the FBD property and leisure portfolio to Farmer Business Developments.

"There's a rationalisation, we've got to take out cost cuts," said Mr Berkery. "We have certainly to take out costs and when we rationalise, we will have to look at how we deliver our service because the one certain thing I know, what the customer wants and will always want to know is 'how do I compare to the alternative'."

Shareholders pressed new CEO Fiona Muldoon and Mr Berkery about the cuts being made and neither party denied the possibility of potential office closures. However, Ms Muldoon did rule out office closures as part of phase one of the cuts being made within the business.

Phase one will comprise of around €7m in cuts across the company and will result in roughly 100 jobs losses.

Mr Berkery, who ruled out retirement amid a question from a shareholder, said that claims that No Nonsense insurance cost the company €50m were absolutely untrue.

One shareholder from Cork, John Flynn, questioned the decision to change CEO, saying that the problems that existed before would continue regardless of who remained top of the company.

"I think there are some insurance companies and they've changed their chief executive a couple of times but they still have the same problem. It still exists," Mr Flynn said.

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