FBD Insurance investors agree to €70m fundraising from Fairfax
Published 30/12/2015 | 14:13
Shareholders in insurance firm FBD have agreed to the final terms of a €70m capital investment from Fairfax, a Canadian company, headed up by businessman Prem Watsa.
At a meeting in the Irish Farm Centre in Bluebell today, shareholders voted overwhelming in favour of two resolutions linked to the loan.
Should the company's share price increase to €8.50 in the coming years, Mr Watsa will be able to convert his position into ordinary shares - they are currently trading at about €6.60.
The resolutions were voted on to help FBD come in line with regulations under Solvency II, which is due to come into effect on January 1 2016.
In October, shareholders in the company agreed to sell of its hotels as it aims to deal with it significant losses.
Fiona Muldoon was appointed chief executive at the insurance firm earlier this year.
When asked about possible office closures Ms Muldoon said: "We will continue to make sure on a cost benefit basis that the branch network pays its way. It is an important part of the service we offer people it is an important part of our own risk selection in that we are closer to our customers."