LONDON (ShareCast) - (ShareCast News) - Property and casualty insurance group FBD Holdings swung to a loss in the first half of the year and said it was taking actions after a difficult year.
In the six months to 30 June, the London-listed company posted a €96.4m pre-tax loss compared with a €4m profit in the corresponding period in 2014, as net claims surged 84.1% year-on-year to reach €215.8m.

"This is a difficult day for FBD, our shareholders and our staff," said group interim chief executive Fional Muldoon.

"These results reflect very serious increased claims costs in our industry.

"We are taking decisive action now to de-risk our strategy and return to profitability by the end of 2016."

Meanwhile, the Ireland-based firm added it was in the process of selling its stake in its FBD Property & Leisure joint-venture to Farmer Business Developments, in a bid to strengthen the capital resources of its core business.

The group, which will also redeem its loan notes in the joint venture, said it expects to receive approximately €48.5m from the sale of its 28.7% stake.

However, the deal is expected to result in a "marginal reduction" in earnings per share, the group added, indicating it was reviewing its strategy.

"The previously signalled claims uncertainty in Ireland has continued and deteriorated further," it said in a statement.

"The existing business strategy has not delivered profitable growth and, given the significant losses reported today, the group has reviewed its strategic direction."

FBD shares were down 5.02% to €6.53 at 1025 BST on Monday.

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