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AIB’s number two tipped to take over at FBD

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AIB Deputy CEO Tomás O’Midheach

AIB Deputy CEO Tomás O’Midheach

AIB Deputy CEO Tomás O’Midheach

FBD is expected to announce on Friday that AIB’s deputy chief executive officer Tomás O’Midheach will be its next CEO.

FBD declined to comment, ahead of its financial results.

AIB announced to the stock exchange on Thursday evening that Mr O’Midheach, an executive director at the bank, had tendered his resignation triggered a six month notice period. The Bloomberg newswire reported he was leaving to take up the top job at FBD.

Mr O'Midheach was among potential candidates tipped to become CEO at AIB itself two years ago after Bernard Byrne left, but Colin Hunt won that job and O’Midheach became the second most senior executive at the bank as deputy CEO from October 2018 and an executive director since March 2019.

FBD, Ireland’s only listed insurer, as been seeking a CEO since Fiona Muldoon announced her plan to stand down late last year.

When she left in March this year, the insurer appointed Paul D'Alton as interim chief executive officer.

Based on the notice period at AIB, its likely to be next year before Tomás O’Midheach takes the reins at FBD. The insurers controversial decision to challenge customer claims to be compensated under business interruption cover for being shut as a result of the Covid pandemic is likely to have been thrashed out in the courts by then.

Meanwhile, FBD Insurance itself has issued proceedings against the State in a bid to recover indemnities it was forced to provide in a claim where a man was injured while a passenger in a van with no seats in the back.

The accident happened 21 years ago and has been the subject of litigation in Ireland and the European courts.

FBD is now seeking the recovery after a European Court of Justice (ECJ) ruling in its favour in 2018.

The passenger in the van sued the driver, the van owner and FBD for serious injuries, loss and damage.

FBD argued its policy did not cover passengers in the part of the vehicle where there was no seating.

But in 2009, a High Court judge found FBD were not entitled to refuse to indemnify the driver and the owner.

The matter ended up before the ECJ, which ruled two years ago that the insurers should not be required to pay out on the claim.

FBD is now seeking to recover the indemnity and issued proceedings on Wednesday against the Government of Ireland, Ireland and the Attorney General.

A key issue in the case was that, although there was an EU directive that provided insurance should cover liability for personal injuries to all passengers, Irish legislation did not implement this requirement correctly and excluded compulsory insurance for passengers with no fixed seats.

Online Editors