FBD shares plunge over €100m cash injection fear
Shares in insurance group FBD plunged as much as 7pc yesterday on reports the insurer may need up to €100m in fresh capital to meet new European Union solvency rules.
FBD will sell its stake in a hotels business to its joint venture partner Farmer Business Development for €48.5m and issue bonds to meet the target, the Irish Independent understands.
The insurance group was rocked by the sudden departure of chief executive, Andrew Langford, which took place at the end of July.
Chief financial officer Fiona Muldoon, the former head of banking and insurance supervision at the Central Bank, stepped in as interim CEO and is widely tipped to take on the top role.
She joined FBD in March.
'The Farmers Journal' reported yesterday that a total capital injection of up to €100m could be required to ensure that the embattled insurer can meet tough new solvency rules due to take effect from the start of next year.