UPDATE 2-Insurer FBD sees profit below consensus, shares hit
* Sees full-year op. EPS 10 pct below consensus range
* Higher than expected claims charge
* Hit by property downturn in Ireland and Spain
* Shares slide 20 pct
(Adds analyst, industry group comment)
DUBLIN, Nov 18 (Reuters) - Irish insurer FBD (FBD.I)said on Tuesday its full-year earnings would be about 10 percent below the current range of analysts' forecasts, sending its shares sliding.
FBD (FBH.L) said its operating earnings per share for 2008 was likely to come in about 10 percent behind an analysts' forecast range of between 195 cents to 205 cents per share, as claims charges had come in higher than expected.
"It appears that this has been driven by a higher than anticipated claims line in H2 (due to 'continuing poor weather and increasing costs of property claims') and the impact of challenging market conditions for the non-underwriting businesses," Goodbody analyst Anna Lalor said.
Shares in FBD were down 18.5 percent at 9.25 euros at 1116 GMT, above an earlier low at 9.00 euros and compared with a 3.8 percent fall in the Irish market .ISEQ.
On the positive side, Goodbody's Lalor said it was important FBD had emphasised that its balance sheet remained very strong despite recent turmoil in financial markets, and that it was committed to maintaining strong solvency and liquidity margins.
Market conditions for FBD's leisure and property development business in Ireland and Spain and its financial services business in Ireland were challenging, FBD said.
FBD continued to reduce its equity holdings but market turbulence has resulted in increased fluctuations in investment returns, it added.
In a separate statement, the Irish Insurance Federation (IIF) said the non-life market had been severely impacted by August storms in Ireland, which cost nearly 100 million euros.
"Meanwhile, life sales growth slowed down substantially in late 2007, and has actually fallen in the first half of this year, reinforced by the recent drop in investor confidence arising from the turmoil in global financial markets," it said. (Editing by Will Waterman)
