FBD Holdings is now the only Irish owned insurance company. I referred to it a fortnight ago as an example of a farmer business set up from scratch in the late 1960s to service the insurance needs of Irish farmers.

There are lots of insurance brokers and Irish branches of European, British and American insurance companies in Ireland, but only FBD is incorporated and based in Ireland.

It is fully quoted on the Stock Exchange and theoretically can be taken over by anyone with sufficiently deep pockets.

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Except that FBD plc – originally the co-op – left in farmer ownership after the flotation of the quoted insurance company and still owned by farmers, owns what is in effect a blocking 25% of the holding’s company.

FBD plc is probably better known for its successful hotels in Ireland and Spain, but as became apparent at last week’s AGM, there are strong feelings as to how the company should progress and whether its original reason for existence – to effectively guarantee the continuation of farmer control of the insurance company – is still valid.

Strong views

There were some strong views expressed that the 25% of the insurance company should be sold and the €140m that would result be distributed to the existing farmer shareholders.

And they are all farmers or the offspring of farmers as the rules governing the sale and transfer of shares are tightly controlled, as is the case in most co-ops.

On the other hand, we were forcibly reminded that despite the success of the hotels, the primary purpose of the company is to safeguard farmer influence and effective control over the insurance company.

This particular contribution drew strong applause. But there is no doubt that there was a genuine view that existing, long-term shareholders feel that their shares have in effect no market so that regardless of the underlying value of the hotels, the stake in the insurance company and miscellaneous smaller investments, they are locked in.

The last time the shares traded, the price was €1.90/share but for the last few years, the trading facility has not operated. However, we were told that the value of the assets – the so-called “see through value” is about €6.20/share.

The message to the board and its advisers was in my view quite clear that a discussion paper on the current structure and share transfer arrangements should be prepared.

It’s hard to argue against such a course regardless of what decision is eventually arrived at.

On a personal note, I must declare an interest.

As a student in the late 1960s I invested £50 in the original FBD share drive. It has been an interesting journey and we haven’t reached the final destination yet.