LONDON (Alliance News) - Irish property and casualty insurer FBD Holdings PLC Friday said the storms and strong winds that hit Ireland in the build-up to New Year's Eve will cost it in the region of EUR4 million to EUR5 million net of reinsurance, reducing operating earnings for the recent year by as much as 13 cents per share.
FBD, which writes car, home, business and farm insurance, said it now expects operating earnings, a measure based on longer-term rates of return, to be in the range of 135 to 140 cents for the year that ended December 31, 2013.
On November 19, FBD had given guidance that full-year operating earnings per share would be in the range of 145 to 155 cents, as long there were no "exceptional weather events" in the remainder of the year.
However, FBD said it expects to meet market expectations for pretax profit and for basic earnings per share, as its investment returns for the year were "better than anticipated" than at the time of November's interim management statement. The main driver of the improved investment returns was the company's equity book through to the year end.
FBD said it would provide further detail on the events when its results for the year are published on March 3, 2014.
FBD shares were quoted at EUR18.00 Friday afternoon, up 1.4%.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
Copyright © 2014 Alliance News Limited. All Rights Reserved.
