Shares in insurance group FBD surged by almost 20% in Dublin after it confirmed a weekend report that it had received a preliminary takeover approach from Dutch insurer Eureko.

But FBD said the approach was unclear, appeared to differentiate among shareholders and was highly conditional.

Yesterday, the Sunday Independent said Eureko was offering €1.2 billion for the company, forcing FBD to issue a stock exchange statement.

Eureko owns Friends First in Ireland. Shares in FBD closed €4.80 higher at €34 in Dublin this evening.