New Ireland and Muldoon's FBD sign 'preferred provider' deal
New Ireland and FBD have signed a five-year agreement that will see New Ireland become a "preferred provider" of life and pension products to over 500,000 FBD customers.
FBD told the Sunday Independent that the deal, which will be launched in the Autumn, "enables FBD to present a truly customer-focused life and pensions proposition to our customers and meet all of their life, protection, pension and investment needs."
New Ireland is a wholly owned subsidiary of Bank of Ireland, on whose board FBD chief executive Fiona Muldoon now sits.
The FBD/New Ireland tie in was put in place before Muldoon's appointment as FBD's chief executive. Muldoon, who says her primary focus is to restore FBD to profit, revealed its existence at FBD's recent AGM in response to a shareholder's question.
Muldoon, the former Director of Credit Institutions and Insurance Supervision at the Central Bank was appointed a non-executive director of BoI in June 2015. She was appointed chief executive of FBD in October 2015 having served as its interim chief from July of that year.
A Bank of Ireland spokesman said the bank was "satisfied that no conflict of interest arises" in respect of the new product and Muldoon's dual board membership.
"Where a potential conflict is identified, there are well-established governance procedures in place to ensure no conflict of interest occurs," the spokesman said.
"This was made after the completion of all appropriate internal governance and external regulatory approval processes which would have taken into consideration all relevant matters in assessing and approving such an appointment."
It's understood that FBD believes no issue of conflict arises, and that Muldoon does not discuss insurance matters at BoI's board.
"We continue to strengthen our customer base in the Irish agricultural and small business sectors and we will pursue a single-brand consumer strategy. We have a path to full-year profitability by 2017," Muldoon told FBD shareholders last week.
Sunday Indo Business