FBD to pay out up to €9m in flooding claims

Insurer FBD has informed the stock market that it expects to pay out up to €9m in claims resulting from the widespread flooding in recent weeks.

In a statement the company said it is likely the final costs to the Irish insurance industry will exceed those of any other previous weather-related event.

An estimated €100m in total was paid out by insurance companies following flooding in August of last year.

"The Group estimates that the flooding will increase its net incurred claims costs for 2009 by between €8m and €9m, reducing earnings per share by 21 to 24 cent," the statement said.

"Barring further exceptional claims events during the remainder of the year, the Group is confident that full-year operating earnings per share will be in the range of 75 to 80 cent."

The company had last month said it expected operating earnings per share for the year to be ahead of average expectations of 86c a share.