Insurance group FBD has said it is on course to meet its operating profit target for this year after the majority of its businesses performed to expectations.

In a statement to the Irish Stock Exchange, the company said yesterday that, while pretax profit would benefit substantially from the sale of land in Spain in the first half, the numbers would be adversely affected by the recent decline in world stock markets.

Finance director Andrew Langford said the group's capital fund comprised €95 million worth of equities. As a result, any decline in stock markets has a direct impact on the group's bottom line.

Mr Langford said volume growth in the group's insurance underwriting business had been better than expected, though margins remain under pressure.

Competition for business, particularly in the commercial arena, continued to be quite intense, he said, adding that the property, hotel, leisure and financial services businesses had performed to expectations.

The underwriting business accounts for 85 per cent of operating profit, with property and financial services making up the remaining 15 per cent.

Analysts are forecasting full-year operating profit of between €145 and €150 million.