THE insurer FBD has revealed it has sold a Luxembourg-based subsidiary in a deal worth close to €35m.
In a statement to the London Stock Exchange after the close of markets last night, FBD said it had offloaded Abbey Reinsurance to Groupe PPR – a Paris-based luxury, sports and lifestyle group – for a total cash consideration of €34.7m.
FBD set up Abbey Re in 1997 as a "captive" reinsurance company which was registered, authorised and regulated in Luxembourg.
It participated in the group's reinsurance programme for the last 15 years.
In recent years FBD said Abbey Re's role in the group's reinsurance programme had "reduced considerably" and as a result the board had decided to dispose of the business.
The sale will have "no material effect" on the ongoing operations or profitability of FBD, and the proceeds from the sale will be used for working capital.
FBD said it expected to book a gain of around €4m this year as a consequence of the sale.
Shares in FBD had earlier gained 1.9pc to close yesterday at €10.50.
The stock is up nearly 70pc in the last 12 months, and the company said last month that its full-year profits would be ahead of previous forecasts.