The years roll on and peoples’ priorities change. After the traumas of the financial crises and COVID-19, the two main FBD entities have settled down, to some extent.

The quoted holdings company is concentrating on its insurance business, has a large share of the farmer insurance market, is trading profitably and is considering how best to return some capital over and above its needs to its shareholders.

Founded over 50 years ago, it is fair to say that largely, the company is meeting the original objectives of its founders – to meet the insurance needs of the farming sector while being competitive and profitable.

It is now the only Irish-owned insurance company operating in the country.

The other main FBD entity, FBD Holdings plc, is in effect the old co-op, but with some important adjustments; its purpose is not nearly as clear-cut. It is, in reality, an investment company with a number of utterly unrelated investments.

The most high profile is FBD Hotels and Resorts, which has four substantial hotels in Ireland as well as significant properties in Spain.

With earnings of over €18m in 2022 on the back of a post-COVID-19 recovery in the hospitality sector in both Ireland and Spain, the future looks positive.

Significant dividends

At the same time, the quoted holdings company, in which the plc has 24% shares, has resumed significant dividend payments and the PLC (co-op) payout for 2022 is €8.7m.

Not surprisingly, dividends to shareholders have increased to 9c/share, up from 7c/share last year – and after a break, preference shareholders are also seeing a resumption of their dividends.

However, some of the long-standing shareholders had two complaints, which they aired clearly and with conviction.

The first is the difficulty they experience in disposing of their shares. A buy-back price has been set at €1.91/share. This compares with a “see-through” value of approximately €6, though as investors in the REITs (Real Estate Investment Trusts) discovered, see-through values can be difficult to fully realise.

The other main FBD entity, FBD Holdings plc, is ... in reality, an investment company with a number of utterly unrelated investments

Nevertheless, the new chairman, Patrick Murphy, who replaced the sadly deceased Padraig Walshe, undertook to investigate other ways of creating a market for shareholders wishing to sell.

The other main complaint was about the small size of the dividend, which is absorbing roughly 20% of after-tax profits.

As the average age of the original shareholders advances, increasing numbers of the shares are being handled by the executors and heirs of deceased members; the original founders’ motivation and loyalty may become more open to question.

One prominent attendee proposed that the objectives of the company be reviewed.

This may well be, together with a governance review, a sensible step for the company to take at this juncture.