FBD shares drop following statement

FBD shares dropped more than 6 per cent in Dublin today following the publication of the group's  pre-trading statement for the…

FBD shares dropped more than 6 per cent in Dublin today following the publication of the group's  pre-trading statement for the year to June.

In the statement issued to the Irish Stock Exchange this morning, the insurer group said its premium growth was marginally ahead of last year, and that it had maintained policy growth in its underwriting business.

However the group warned of intense price competition in the insurance market and said that recent weakness in government bond markets had resulted in a negative impact on investment returns and consequently on the company's pre-tax profits.

However, FBD Holdings has said it is comfortable with its market expectations for full year operating profits of 324 cents per share and said that claims and other costs are as expected for the year to date.

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The company reported that its leisure, property and financial services interests were performing to budget.

The group's interim results will be announced on Wednesday 29 August.