FBD lowers earnings expectations following storms

Insurance group FBD has lowered its full-year earnings expectations as a result of the storms

before New Year’s Eve.

The insurer yesterday said the adverse weather that hit Ireland over Christmas would cost it between €4 million and €5 million net of reinsurance, reducing operating earnings per share.

The company now expects operating earnings to be 135-140 cent for the year ended December 31st. In November FBD had given guidance that full-year operating earnings per share would be 145-155 cent.

“FBD’s earlier guidance was calculated on the assumption that large claims revert to norm, and that there would be no exceptional weather events during the remainder of the year. Ireland experienced storm-force and, in certain areas, hurricane-force winds between December 19th and 31st,” the company said in a statement.

The value of storm-related claims in recent weeks is believed to be €30 million to €40 million, lower than in recent years when storm damage cost up to €300 million.

FBD said it expected to meet market expectations for pretax profit and basic earnings per share as its investment returns for the year were “better than anticipated” at the time of November’s statement.