Shares in insurance company FBD Holdings soared today after it said it expects Storm Ophelia to cost it between €4-6m.

FBD shares closed 11.25% higher today at €8.90.

In a trading statement, the firm said the cost of claims from the storm are expected to be €2.5m but it will also have to pay to reinstate the catastrophe weather limits in place on its reinsurance programmes. 

The company said its new reinsurance programme provides good cover in extreme events and this will mitigate the net cost of the storm to FBD.

FBD said that if the weather remains "benign" for the rest of 2017, it hopes to deliver a low double digit return on equity this year.

The company noted in today's trading update that the largest number of claims from the storm to date have come from counties Cork and Tipperary.

"Despite the impact of Storm Ophelia and other recent weather related claims, we continue to see a steady improvement in our financial performance from both better risk selection and improved price adequacy," the company's chief executive Fiona Muldoon said. 

"Absent further severe weather in 2017, we are now on course to deliver our targeted low double digit return on equity earlier than previously indicated. If the remainder of 2017 is reasonably benign in weather terms, we believe this return is achievable in this financial year," the CEO added.

In a note, Davy Stockbrokers said the expected €4-6m cost from Storm Ophelia compares with the €15.2m cost incurred in 2014 when a series of windstorms culminating in Strom Darwin hit the country.

Davy said it reiterated its 'outperform' rating on the stock.