Flood claims to cost FBD up to €9m

FBD Holdings has said the cost of the recent flooding in the south and west of Ireland is likely to increase its claims costs by up to €9 million

In an update to its interim management statement released on November 19th, the firm said the cost to the insurance industry would exceed that of any previous weather-related event.

FBD's net incurred claims costs for 2009 would be hit by between €8 million and €9 million, it said.

The added claims will also reduce its earnings per share by 21 to 24 cent.

In November, FBD predicted operating earnings per share for 2009 would be ahead of expectations as loss ratios improved and market rate increases compensated for falling market volumes and cover.

However, the company said it was confident that, barring further exceptional claims, the full year operating earnings per share would be in the range of 75 to 80 cent.