FBD Holdings told shareholders at its AGM today that it was well placed to take advantage of an expected rise in insurance premiums this year.

"Indications are that premium rates will harden during the remainder of the year. Our recent investment in people and infrastructure leaves us well positioned to take advantage of such market conditions," Chairman Michael Berkery said at the meeting today in Dublin. 

Berkery said it expected the downward price trend in the market to reverse, adding that gross premiums written to date this year continued to be in line with the same time in 2007.

He said that financial market turbulence in 2008 had had an impact on profit before tax. "This was greatly mitigated by the group's decision to reduce its exposure to equities during 2007," he said.

He said that results to date for its Internet-based "No Nonsense'" car insurance brand, launched in February with Ryanair had been "encouraging".

Berkery said that on 7 April 2008 the Board confirmed that it had received a preliminary approach from Dutch insurer Eureko and, after due consideration, had concluded that the approach was unclear, appeared to differentiate among shareholders and was highly conditional.

On 28 April 2008 the Board confirmed that it had received further correspondence from Eureko. The Chairman said taht the Board reiterated that it had not received an offer or an intention to make an offer. The Board advised that having considered all aspects of the approach in conjunction with the Board’s financial advisers, Goldman Sachs International and Goodbody Corporate Finance, the Board had concluded that the approach was entirely without merit and that accordingly the Board had rejected this approach.

Yesterday, 29 April 2008 Eureko withdraw its approach.

"I have to say that I am not surprised at their decision given that our considered analysis of their approach failed to identify any commercial, strategic or financial logic in their proposal and consequently would not have been in the interests of shareholders," Berkery said.

Eureko already owns life and pensions group Friends First. It was said to be proposing a merger of FBD and Friends First, floating the combined company on the Irish Stock Exchange.

FBD shares fell 7.45% this afternoon.

Full statement