FBD shares hit new high

INSURANCE and investments specialists FBD Holdings had good news for shareholders yesterday, with an upbeat trading statement that lifted the share price to an all-time high.

The company said it had traded strongly in the year and should meet market expectations for the full year.

FBD shares gained 3% yesterday, hitting a record high of €37.00. The share has been one of the star performers of the Dublin stock exchange this year, almost doubling in value with a 92% increase. The increase comes after a 40% share price during 2004.

“We remain focused on growing market share in our core underwriting activity and on maximising the competitive advantages of our direct sales business model,” the company said. But it warned of a tough battle to protect market share in its core domestic insurance market and said profit levels would fall towards European averages.

“In the Irish insurance market, price competition is continuing. As we noted in our interim statement, this will drive the combined ratio to European norms in due course,” it said.

FBD reported strong interim results in August, with operating profits 29% higher at €87m. The rise was achieved on the back of underwriting profits that came in significantly ahead of expectations, as well as positive investment returns.

The firm, which employs over 1,500 people, has diversified beyond insurance and has developed interests in property and leisure in Ireland and Spain. FBD’s Irish portfolio includes the Tower Hotel group, as well as the Sunset Beach Club and La Cala resort in Spain.

The Tower group’s properties include the Tower Hotel and Faithlegg House in Waterford, as well as Dublin’s Temple Bar Hotel and Castleknock Hotel and Country Club. It also owns a hotel in Derry.