?????????premium income growth and an improved underwriting performance this week, market sources began to speculate about

Can general insurer FBD remain independent in a consolidating market?

As the group reported good a possible takeover.

As a relatively small operator FBD would be an obvious takeover target for a general insurer trying to build scale. Norwich Union was suggested as a possible acquirer. It owns 5 per cent of FBD and is planning a merger with Commercial General Union - itself a result of the merger of Commercial Union with General Accident.

But FBD would not be an easy takeover target because its shares are very tightly held. Some 40 per cent of the group is owned by Farmers' Business Development, the original FBD, a company which has about 6,000 farmer shareholders. A further 7 per cent is held by FBD Trust, while some 23 per cent is held by the Belgian bank KBC.

With these shareholders seen as "slow sellers", a bidder would need a friendly deal to have any chance of success.

But to get a friendly deal a bidder would have to pay well for the group which has consistently delivered dividend growth to its shareholders.