FBD Insurance could get hit with a bill of up to €6 million in the aftermath of ex-hurricane Ophelia, following payouts to affected customers.

FBD Holdings plc released a statement noting that, since the ex-hurricane hit Ireland last week on Monday, October 16, the company has been working with its customers to compensate them for the damage caused to their homes, farms and businesses.

The insurer has said that it is too soon to give a final figure on the overall number of claims and the combined cost, but the cost of claims to the company – once reinsurance has been given to FBD – will be €2.5 million.

The company has noted that the net cost has been mitigated due to its reinsurance programme.

The overall net impact to the insurer’s income statement from the ex-hurricane, however, is expected to cost in the region of €4 million to €6 million – after the payment of an additional reinsurance premium to reinstate the firm’s catastrophe weather limits for the balance of the year.

So far – and as the number of claims start to level off – claims have come from all over the country, with the largest number to date coming from counties Cork and Tipperary, the firm reports.

Fiona Muldoon, CEO of FBD spoke on the issue, stating: “Despite the impact of Storm Ophelia and other recent weather-related claims, we continue to see a steady improvement in our financial performance from both better risk selection and improved price adequacy.

Absent further severe weather in 2017, we are now on course to deliver our targeted ‘low double digit return on equity’ earlier than previously indicated.

“If the remainder of 2017 is reasonably benign in weather terms, we believe this return is achievable in this financial year,” Muldoon concluded.