FBD offers best deal for drivers

BUY car insurance from FBD, whatever about their shares, is the clear message from Davy Stockbroker’s insurance and banking sector expert Scott Rankin.

The Davy analyst told clients yesterday morning to ring FBD for a motor insurance quote after he analysed details of a survey of seven leading insurers by the Irish Financial Services Regulatory Authority (IFSRA).

FBD’s aggressive premium price-cutting resulted in the company doing very well in the survey.

In a note to clients yesterday Mr Rank said: “while as an investor one could interpret such news as both good or bad, if you are a car owner (and residing in Ireland, of course) I suggest you follow this analyst and give them a call.”

Mr Rankin said that in the latest motor insurance survey by IFSRA, FBD comes out as one of the best value companies in the market. “Cheap” is a dirty word in the insurance game, he told his clients.

Mr Rankin said the results of the survey may also partly explain why the company has been gaining market share at the expense of its competitors “many of whom hiked up premium rates in a big way” in recent years.

“The survey takes six customer profiles and shows quotes from seven different insurers. Eyeballing the quotes for fully comprehensive insurance for both men and women, with a total of 12 options, FBD claims four number ones (ie the cheapest), four number twos and one number three,” said Mr Rankin.

In one example in the IFSRA survey, FBD quoted €622 for a salesperson living in Dublin and driving a 1999 Subaru Impreza, while Royal & Sun Alliance quoted €1,205.

For a female driver, FBD was still lowest at €554, with Royal & Sun Alliance dearest at €1,027.

FBD shares remained static yesterday at €18, up 2.86%.