FBD Holdings - FCA business interruption appeal implications

Davy Research
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The UK Supreme Court ruling expands the gross liability of UK insurers as it overturned the initial ruling on the trends clause. If a similar ruling is delivered in Ireland, the gross loss to FBD will be higher than previously expected but with a lower and manageable net loss impact due to re-insurance. A loss in the case may also delay any decision on dividend re-instatement throughout 2021 until settlements are substantially completed but should not overly detract from a business with a substantial capital buffer and attractive positions in its main markets.