Insurance rates set to rise as FBD posts €85m loss
Company targeting 'single digit' hikes on farm account premiums
Published 01/03/2016 | 02:30
Insurance rates look set to rise at FBD following an €85m pre-tax loss after an "exceptionally difficult" year and well-known figures in farming circles are exiting the insurer's board.
Chief executive Fiona Muldoon said the company is targeting increases in farm accounts in the "low single digits" this year.
FBD is likely to generate a loss of about €1.5m next year before returning to profitability in 2017.
"We have an enormous amount to do during 2016 to make sure we get there," Ms Muldoon told the Farming Independent. "I think we've gone about doing all the things that we said we would do. I am confident that we have set ourselves the right challenges. It's not a slam dunk to get there. We're going to have to be vigilant and keep ploughing our own furrow."
Meanwhile, FBD Holdings plc chairman, Michael Berkery - who served as the IFA's general secretary for 25 years before retiring in 2009 - has confirmed he plans to retire next year from the FBD board after 19 years.
Former IFA president Eddie Downey has also confirmed he will not be seeking re-election to the FBD board next month.
Mr Downey, who received €30,000 in director's fees for 2014 from FBD, stepped down from the IFA presidency last November. His resignation followed the exit of then general secretary Pat Smith after it emerged Mr Smith received a total of nearly €1m in remuneration from the IFA over two years.
In a statement to the markets, FBD said four board members would not be going forward for re-election for a variety of reasons.