The FBD Group currently comprises two main structures. Firstly, there is a holding company – FBD Holdings plc. This is the plc that is quoted on the Dublin and London stock exchanges. FBD Holdings plc was set up in 1988. The company currently has nine directors. Secondly, there is FBD Insurance plc, which is a principal subsidiary of Holdings and was set up in 1967. This company has seven directors.

The current group structure has three common directors and the proposed new structure will have a board of at least nine. It is likely that some of the members will move across to the new board structure.

The board of FBD Holdings is currently made up of the following: Michael Berkery as chair (27 years), Sean Dorgan (eight years), Padraig Walshe (four years), Brid Horan (four years), Eddie Downey (one year), Emer Daly (one year), Fiona Muldoon (one year), Ruairi O’Flynn (nine months) and Liam Herlihy (five months).

The board of FBD Insurance plc is currently made up of the following: Michael Berkery as chair (32 years), Vincent Sheridan (six years), Martin David (four years), Walter Bogaerts (three years) Sean Dorgan (one year), Fiona Muldoon (one year) and Paul Daly (three months).

It is proposed that the new structure will have a board comprised of nine directors and the dual board structure currently in operation will be retired. This new structure will be implemented over the coming months as appointments are made and regulatory approvals obtained.

Under the current arrangement, both IFA and Farmer Business Developments, as the largest shareholders, are invited onto the board. FBD has confirmed that this will continue under the new structure. Group chair Michael Berkery has also indicated that he will retire from the board at the 2017 AGM.

Emer Daly, Eddie Downey, Brid Horan and Ruairí O’Flynn will continue in office until 29 April, the date of the 2016 AGM, but will not be putting themselves forward for re-election at the AGM.

This is for a variety of reasons, including the regulatory limit in Ireland on the number of directorships of financial undertakings which can be held by any individual.

Walter Bogaerts has been appointed to the board of FBD Holdings plc with immediate effect. It is understood that FBD is well advanced in making an additional appointment to the board and will make an announcement once confirmed. It is also working with an external agency to find suitable people with the necessary experience to join the board over the coming months.

This is a positive move for FBD and will provide for simpler reporting and improved governance. The market has reacted positively. Along with the necessary management and business changes, the company looks like it has turned a corner, focused and determined to return to profitability against a much challenged insurance market. With Fairfax likely to own up to 20% of FBD in the future it is likely that they too will have a seat at the board. Who the next chairman will be after Michael Berkery’s 20 years as chair remains to be seen.