Monday 19 February 2018

FBD Insurance investors agree to €70m fundraising from Fairfax

FBD chief executive Fiona Muldoon will have been pleased to see the insurer’s share price barely drop from €6.85 to €6.78 in the last week, despite the floods. You see, insurance companies in Ireland are allowed to decide not to provide flood insurance where there have been prior claims
FBD chief executive Fiona Muldoon will have been pleased to see the insurer’s share price barely drop from €6.85 to €6.78 in the last week, despite the floods. You see, insurance companies in Ireland are allowed to decide not to provide flood insurance where there have been prior claims
Michael Cogley

Michael Cogley

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."

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