FBD shares slump as long-time CEO Andrew Langford steps down

FBD shares slumped as much as 11% yesterday after the insurer said that its chief executive of seven years has stepped down.

CEO Andrew Langford will be replaced on an interim basis by Fiona Muldoon, the group finance director, FBD said.

The announcement comes as the insurance group – in which Farmer Business Development owns a stake of around 26% – prepares to release its earnings results for the first six months of the year later this month.

FBD had previously reported on tough trading conditions for 2014. Earlier this year, it posted a pre-tax loss of €4.5m in 2014, compared with a profit of €51.4m the previous year, after it said it suffered “a severe deterioration in the market claims environment and the worst weather experience in the group’s history.”

The insurer said at the time it would “continue to take all appropriate action to respond to trading conditions and return the group to profitability.” FBD said Mr Langford – who worked at FBD for 19 years – will work as a consultant with the company over the next year.

“Having worked with the Company for most of my professional life, now is the right time to explore some new challenges and opportunities. This will allow a new person to take the helm and bring the Company forward into its next phase of development,” Mr Langford said in a statement.

Ms Muldoon takes over on an interim basis until the completion of a recruitment process. She was previously the high-profile director of credit institutions and insurance supervision at the Central Bank between August 2011 and May 2014.