FBD Holdings PLC Business Update (8319N)
26 May 2020 - 4:01PM
UK Regulatory
TIDMFBH
RNS Number : 8319N
FBD Holdings PLC
26 May 2020
FBD Holdings plc
FBD Insurance plc
Business Update
26(th) May 2020
FBD Holdings plc ("FBD") is today issuing a business update
relating to policy coverage for business interruption claims
following the Covid 19 pandemic.
Following the actions taken by the Government to stop the spread
of Covid 19, which resulted in the temporary closure of many
businesses, FBD has received over 700 claims under the business
interruption extensions of our business insurance policies. FBD is
strongly of the view that our business insurance policies do not
provide cover for a pandemic of this nature and we have addressed
all claims accordingly .
We understand the extraordinary and unprecedented challenges our
customers are experiencing as a result of the actions taken by the
Government to reduce the spread of Covid-19. We are committed to
helping our customers through this difficult time. To this end, we
have introduced a range of support measures for our business
customers who have temporarily closed their premises such as a
pro-rata refund of premium relating to the business closure,
maintaining full cover for unoccupied business premises without any
additional premium and offering flexible premium payment
arrangements for customers who are experiencing financial
challenges at this time.
We acknowledge the disappointment and frustration of affected
businesses that their business interruption insurance does not
respond to cover pandemics. However, we are unable to provide cover
for what we believe to be, and are advised is, an uninsured risk
not covered by our policies.
A number of customers have challenged FBD about our
interpretation of policy wordings in particular with regard to
those sold to publicans. FBD have approximately 1,300 pub customers
and wish to have the issues resolved as quickly as possible to
achieve clarity and minimise costs for all parties. Having
carefully considered the matter, FBD believes that the most
expeditious and efficient way of achieving that is for proceedings
to be brought, by way of test case . We can now confirm that
litigation between FBD and three publican customers claiming cover
for business interruption as a consequence of Covid-19 public
health measures, has been scheduled for hearing in the Commercial
Court in October 2020. FBD intends using these cases to seek a
determination in court of the overall question of whether losses
due to Covid19 related closure, claimed by public house owners, are
covered by their FBD policy under the business interruption clause.
The three cases in question will allow the issue of cover to be
decided in a set of court proceedings, therefore avoiding each pub
owner concerned having to take their own legal actions and
incurring the related costs. W e await the Courts determination in
due course.
FBD is confident in our interpretation of policy coverage and
are of the view that this approach will provide clarity in an
expedient manner to the customers concerned.
Enquiries Telephone
FBD Holdings plc
Michael Sharpe, Investor Relations +353 1 409 3962
Powerscourt
Jack Hickey +353 83 4488 339
About FBD Holdings plc
FBD is one of Ireland's largest property and casualty insurers,
looking after the insurance needs of farmers, consumers and
business owners. Established in the 1960s by farmers for farmers,
FBD has built on those roots in agriculture to become a leading
general insurer serving the needs of its direct agricultural, small
business and consumer customers throughout Ireland. It has a
network of 34 branches nationwide.
The following details relate to FBD's ordinary shares of EUR0.60
each which are publicly traded:
Listing Euronext Dublin UK Listing Authority
Listing Category Premium Premium (Equity)
Trading Venue Euronext Dublin London Stock Exchange
Market Main Securities Market Main Market
ISIN IE0003290289 IE0003290289
Ticker FBD.I or EG7.IR FBH.L
FBD Holdings plc, FBD House, Bluebell, Dublin 12
Registered in Dublin, Ireland Registered Number 135882
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END
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