FBD's decision to return €177 million of surplus capital to shareholders did not indicate a lack of ambition by the company, said chief executive Philip Fitzsimons yesterday.

Nor did it demonstrate a lack of ability by management to find opportunities in a market that its peers clearly believed offered real growth potential.

Speaking after the company's annual general meeting, Mr Fitzsimons said: "There has been ambition and it has been delivered on over the past number of years, which is borne out by our growth in market share in recent years and the profits we have delivered.

"We have our business plan, and we know the capital that is needed in the short term to grow our business and we have kept that much back and the surplus we said belongs to the shareholders."

Addressing shareholders at the meeting, chairman Michael Berkery said the decision was in the best interests of shareholders.

"The decision to return capital deemed surplus to requirements is further evidence of the group's disciplined capital management and will enhance the return on equity for shareholders."

Average annual total shareholder return over the past five years was 52 per cent, he said, adding that FBD was now Ireland's fourth largest general insurer.

FBD's net earnings figure of €246.8 million for 2006 was boosted by a strong operating performance, the sale of its La Cala resort in Spain and significant returns on its investment portfolio, said Mr Berkery.

The company had no plans to invest in similar schemes to La Cala, and would now concentrate on its core insurance business, according to Mr Fitzsimons.

"People buying into our business aren't buying into a property development business. That's the message that was delivered and you can't ignore it."

However, he said FBD had no plans at the moment to offload its Tower Hotel Group.

The decision to open a business support centre in Mullingar during the year would not lead to any branch rationalisation.

"It is to support the structure that is already there, and allows the local offices to do what they do best, which is interfacing with customers and canvassing new business."

The centre handles 1,000 calls a day, and deals with 80 per cent of calls to the company.

Shareholders were told it currently employs 69 staff, but this was expected to rise to 250 in the next two to three years.

Mr Berkery said FBD was making solid progress this year, and would fulfil it full-year earnings expectations.

He said that a reduction in fraudulent claims, road safety and law enforcement measures and the setting up of the Personal Injuries Assessment Board had led to a reduction in accident claim costs.