One of the largest Irish-owned insurers on the island, FBD Holdings, highlighted the risk that “weather” poses to its business during its Annual General Meeting (AGM) held today (Thursday, May 10) in Dublin.
FBD Holdings, which is set to delist from the London Stock Exchange next month, highlighted that weather is one of the risks that the company currently faces.
FBD Holdings chief executive, Tomás Ó Midheach, told shareholders at the AGM today that although the business had been impacted by storms, particularly Storm Isha in January, so far this year its performance had been solid.
All of the group’s underwriting business is based in Ireland and it has a “significant focus” on the farm sector.
FBD Holdings
As part of its risk management approach FBD Holdings has identified that the management of climate risk is “strategically important” to the group from both a commercial and stakeholder perspective.
It was highlighted during the AGM that general bad weather results in more claims from customers and according to the group it works closely with customers to compensate them for “damage caused to their homes, farms and businesses”.
According to Ó Midheach aside from the risk posed by weather conditions, there is also “much uncertainty” generally because of the ongoing impact from the war in Ukraine, conflict in the Middle East and inflationary pressures.
However he is confident that there are growth opportunities for FBD Holdings particularly in the immediate short term in the farming sector.
Ó Midheach told Agriland: “We’re gaining a lot of farm shareholders and we hope that momentum will carry us through 2024.
“We have gained 3,500 in two years – that is a significant number. We are also growing our small business, we would hope that would keep growing. We consider those to be our relationship customers.
“They are key and much the same offer is being given to both and the momentum is good with both,” he added.
He also said that FBD Holdings appreciated that farmers’ had been challenged by the weather in 2023 and the first four months of the year to date.
“Essentially farm premiums are moving in line with the underline cost of materials associated with damage, farm premiums have been moving much less than the cost of inflation over the last three years and the prime mover has been ensuring that the sums insured covers the loss that would be incurred given the significant rise in the materials that would be used in rebuilding sheds, farms outhouses etc.
“I’m sure farmers have seen the increased cost in steel, wood, labour all of that has to be covered – and that is essentially what has moved the farm premium in recent years rather than price increases with a focus on profit,” Ó Midheach added.
At the AGM today he also acknowledged the recent Supreme Court ruling relating to Personal Injury Guidelines (Delaney v Injuries Resolution Board) .
Ó Midheach said FBD Holdings’ had reduced its premiums in advance of the decision and had “reduced the proportion relevant to injury by 30%, subsequent to it being introduced and understanding the benefits of it we reduced it by a further 10%”.
“We didn’t expect the Delaney judgement to be negative, we hope it would be as it was, we were at risk in the reverse because we had given the price reductions,” he added.
AGM
All 14 of the ordinary and special resolutions proposed at FBD Holdings’ AGM today were passed including resolution four which set out a “final dividend of 100 cent per ordinary share for the year ended 31 December 2023”.
Shareholders also voted to delist from the London Stock Exchange
It is anticipated that the last day of dealings of the company’s ordinary shares on the London Stock Exchange will be Friday June 7, 2024.
FBD’s primary listing of its ordinary shares on the main market of Euronext Dublin will be unaffected.