FBD sells 3 units for €8.5m

INSURANCE giant FBD has made a further step towards refocusing its business on its core interests, by selling three subsidiaries for a combined €8.5 million.

The group has sold FBD Insurance Brokers Ltd, International Loss Control Services Ltd and FBD Risk Management Services Ltd to JLT Ireland; the fifth largest insurance brokerage in the country with offices in Dublin and Cork.

JLT Ireland, which employs 100 people, is owned by international risk consultant, Jardine Lloyd Thompson.

The company will pay an initial €6.75m for the three FBD companies, before an additional payment of €500,000 based on working capital on completion; and a further deferred payment of up to €1.25m.

That last payment is payable in 2013 and will be reliant on financial performance at FBD Brokers, which provides insurance services mainly to the agri-food, waste management and renewable energy sectors.

That subsidiary generated pre-tax profits of around €1.2m last year.

FBD group chief executive, Andrew Langford, said that the deal will allow the group to focus more on its core insurance underwriting business, “and to pursue further growth in the business insurance market, through the broker channel”.

“In partnership with JLT Ireland, FBD Insurance will continue to provide insurance services to the agri-food sector and the transaction will give FBD Brokers an enhanced capacity to provide global services to its clients,” Mr Langford added.

Yesterday’s transaction news boosted FBD’s share price by just under 1%, or 5c in monetary terms, to €6.50.