FBD Holdings is to raise money and cut costs following the announcement of a €96m pre-tax loss for the first half of the year.
The insurance company said it planned to strengthen its claims reserve by €88m while also selling assets and cutting €7m in annual costs.
Shares in FBD Holdings were trading 20.6% lower in Dublin by mid-afternoon.
The company also plans to simplify its business by focusing on one brand only – at present it operates as FBD and nononsense.ie.
Announcing its results for the first half of the year, interim chief executive Fiona Muldoon said it was a "difficult day for FBD, its shareholders and its staff".
FBD blames increased claims costs and what it calls an "increasingly congested and dysfunctional" insurance market.
As part of its capital raising efforts FBD plans to sell its stake in a property and leisure joint venture which manages hotels in Ireland and resorts in Spain.
The proposed sale of FBD property and leisure to Farmers Business Development, a shareholder in FBD, would raise €48.5 million.
The group has also recently reached an agreement with staff in relation to its defined benefit pension scheme, which will see it closed to future accrual and the link to final salary being broken.
