FBD to shed 150 jobs in 15 branch closures

FBD INSURANCE is to shed 150 jobs and close down 15 branches nationwide as more motorists switch to buying insurance either through the internet or over the phone.

The company, which is now Ireland's third biggest non-life insurer, says the redundancies are not as a result of the recession, but in response to market changes.

Branches in Charleville, Clonakilty, Macroom, Donegal town, Ballinasloe, Listowel, Newbridge, Longford, Ballina, Kells, Trim, Carrickmacross, Dungarvan, Enniscorthy and New Ross will close and their functions will merge with some of the 34 remaining branches.

FBD Insurance estimates that 70 per cent of its motor insurance premiums are now bought through its website or over the phone from its call centre in Mullingar, which was opened almost two years ago.

It employs 160 people.

The rationalisations will reduce staff at the insurer from 953 to about 800.

Redundancies will be voluntary and applications will not be confined to staff working in branches that are to close.

FBD chief executive Andrew Langford said the redundancies will allow remaining staff to concentrate on commercial and farming insurance which are still largely carried out on a face-to-face basis.

"By redirecting most of the telephone calls to our support centre in Mullingar and centralising administration, staff in local offices will have extra capacity for these core functions," he said.

FBD Insurance was the most profitable motor insurer in Ireland last year making almost €120 million.

Its adjusted operating profit was €127.9 million across the company, a decrease of 19 per cent on 2006 figures.

Last month it offered an interim management statement suggesting that its operating earnings per share will be down 10 per cent this year.

The Unite trade union, which represents 330 of the 350 workers in the FBD Insurance local office network, is to hold public meetings with staff next week in Cork, Cavan, Carlow and Castlebar to discuss the proposed lay-offs at the company.

Unite regional officer Brian Gallagher described yesterday's announcement as a "real blow to staff, especially coming at this time of year".

He said the one positive of yesterday's news was the announcement that all redundancies would be on a voluntary basis.

"The main challenge now is to see how the changes can be accommodated while protecting the interests of loyal staff who have worked hard down the years at building the presence and profile of FBD in local communities across the country," he added.

This article appears in the print edition of the Irish Times