Insurance group FBD said its full-year operating earnings per share would probably be about 10% below the current range of analysts' forecasts.
'An FBD survey of the forecasts of the analysts who cover the group indicates a consensus range for 2008 operating earnings per share of between 195 cents to 205 cents per share,' it said.
In an interim management statement this morning, FBD said that it has maintained a solid trading performance in the second half of 2008 in 'difficult market conditions'.
The group said that there is more evidence of market rate increases in the second half of the year, but it is likely to be next year before material benefit flows through to general insurers.
It said that the rate increases it implemented earlier in the year have increased average premium per policy and new business volumes remain strong. However, the rate increases has 'restricted' policy volumes, it added.
FBD said that continuing poor weather and increasing costs of property claims recently have resulted in a higher than previously anticipated claims charges in the second half of 2008.
'These factors are common throughout the Irish insurance industry and reinforce the need for rate increases,' the company says.
The company says that market conditions for its leisure and property development businesses in Ireland and Spain and its financial services businesses in Ireland continue to be challenging. 'Measures to protect the competitiveness of these businesses have been implemented,' the company said.
FBD shares closed down 25% at €8.50 in Dublin.
