FBD shares jumped by more than 8% on the back of a Norwegian insurance firm buying a significant stake in the Irish insurer and raising questions about its future ownership.
Norwegian insurer Protector Forsikring has acquired a 6.3% stake in FBD.
The Norwegian company has been quoted as saying it views its purchase as a long-term investment, but that the shareholding is not a strategic move and it is not preparing a takeover bid for FBD.
Protector – which is valued at about €800m –has said it purchased the FBD shares to form part of its wider portfolio of investments.
The Norwegian company specialises in general insurance and reinsurance and sells through brokers and other intermediaries.
It is active across Scandinavia, Finland and the UK. The company is a commercial insurer and does not sell to consumers.
FBD declined to comment on the issue.
The Irish insurer’s shares had risen by as much as 11% on news of the Norwegian investment before paring back.
FBD's shares were down about 9% so far this year before the announcement. FBD – which has been in the eye of the storm over Covid business disruption insurance payments – is currently valued at more than €270m.
Its shares have traded as high as €7.75 and as low as €5.68 in the past 12 months.