FBD Insurance has decided to postpone its AGM and the payment of €35m in dividends to its shareholders due to the COVID-19 pandemic. FBD was scheduled to hold its AGM on May 8 in Dublin, but said it had deferred the meeting to a later date, although it gave no indication when this would be.

The move is not a surprise, given the current government restrictions to try and halt the spread of COVID-19. Other companies have also cancelled AGMs.

Many farmer shareholders in FBD were looking forward to a dividend payment of €1 per share, but this is now paused.

However, pausing the payout of €35m in dividends makes sense for FBD, given the current economic situation across the world and the liquidity challenges emerging in almost every sector of the economy as a result of the global pandemic.

Farmer Business Developments, the largest shareholder in FBD with a 25% stake, was due to receive more than €8.5m in dividends. FBD recently announced that Paul D’Alton has taken over as the company’s new CEO and will replace outgoing boss Fiona Muldoon.