FBD Holdings said its full-year earnings per share will be below market estimates and that insurance premiums need to increase.
In a statement this morning the insurer said full-year earnings would be approximately 10 per cent lower than analysts' estimates of between 195 cent and 205 cent a share.
Poor weather and the increasing cost of property claims in recent months had “resulted in a higher than previously expected claims charge in the second half”.
FBD said these factors were being felt across the insurance industry and “reinforce the need for rate increases”.
The company said the decision not to match the “uneconomic rates” being offered by some insurers had restricted policy volumes. The group’s leisure, property development and financial services businesses also faced “challenging” market conditions.
Equity holdings have been reduced since the half-year to leave the group with €50 million of equities out of total insurance investments of €942 million.
FBD shares were down 16 per cent at €9.50 in Dublin this morning, giving the company a market capitalisation of €316 million. Shares in the group have fallen 58 per cent.
