FBD avoids investor backlash over executive pay levels

Directors' remuneration policy was unanimously approved at its AGM, including a 10% salary increase for finance director John O’Grady

Insurer FBD told investors it was confident about its trading outlook.

Insurer FBD has avoided an investor revolt over executive pay levels, with its directors' remuneration policy being unanimously approved at its AGM.

Shareholder advisory firm Glass Lewis last week recommended investors vote against FBD’s remuneration report, and was particularly critical of a 10% salary increase for finance director John O’Grady.

FBD’s shares jumped by nearly 5% after the insurer told investors it had lowered its prices this year and was confident of its growth prospects and underlying profitability outlook.

Covid business interruption claims

The group also reiterated it had set aside €65m to cover Covid business interruption claims, suggesting it remains confident of not having to pay out beyond what will be due to publicans under its pub policy.

In the year to date, FBD said its revenues – via gross written premium – have “held up well in a very competitive market”, only being 1% down year-on-year.

It said average premiums have reduced by 3% this year, with private motor premiums down by about 5%. FBD said policy numbers have remained stable and it has seen strong retention of existing customers.

FBD said it was “very supportive” of the Government’s insurance reform agenda to reduce premiums for farmers, businesses and consumers and particularly welcomes new guidelines for personal injury awards.