FBD farmer shareholders and the IFA are in line to enjoy a €12m windfall if a proposed dividend payout of €1 per share by FBD Holdings gets the green light.

The proposal, which will be voted on at Thursday’s AGM, could deliver €8.5m to Farmer Business Developments, €3m to FBD Trust and €500,000 to the IFA. The payout will be a welcome boost to individual farmer shareholders of FBD, as well as to the 4,400 mainly farmer shareholders in Farmer Business Developments.

FBD Holdings made no dividend payouts in 2020.

The dividend windfall followed the announcement of profits before tax at FBD Holdings of €110m this year. This compared to a 2020 figure of €4.8m.

The annual report attributed the improved results to a strong underwriting performance, a reduced severity of injury claims and benign weather. Investment returns of €15.7m also added to the overall profits.

Gross written premiums increased by around €8m on 2020 to €366m. The annual report maintained that average premiums on the company’s farm business were “flat with strong retention levels”.

Overall, average premiums were back by 1.3% across the book, with the average private motor reduced by 13.9%. The company said that this trend reflected personal injury guidelines and “benign injury claims”.

FBD Holdings chair Liam Herlihy recognised that the company and its customers had been through a “difficult time over the past two years” due to the COVID pandemic.