Insurer FBD Holdings has entered into an agreement with Fairfax Holdings to invest €70m in the company, sending its shares higher in Dublin trade.
The transaction, which will take place in the form of a convertible bond, will be subject to shareholder approval.
FBD reported a €96m loss for the first six months of the year last month.
That included a claims reserve provision of €88m.
It announced a restructuring of the business at the time, which included the sale of its 50% stake in a hotel and leisure joint venture and the scrapping of its No Nonsense brand.
The convertible bond will carry an interest rate of 7% per year over ten years.
Fairfax Holdings bought up a near 6% stake in Bank of Ireland in 2011 which it started to sell down earlier this year.
Shares in FBD rose sharply in Dublin trade today.
