FBD cuts profit hopes by €16m

FBD has lowered its profit expectations for the year by €16m on the back of higher-than-expected weather and motor/commercial claims from customers.

The company’s share price suffered its highest drop in five years on the back of the news, with a near 9% fall witnessed in early trading. That reverse was, however, stemmed in later trading; with the stock closing the day down by 2.59% at €16.

Yesterday’s update saw FBD lower its full-year 2014 earnings per share guidance from a range of 120c-130c to between 70c and 80c.