FBD shares despite allegations against the CEO

Following the revelation by insurer FBD Holdings on Friday night that its general manager, Fiona Muldoon, was under investigation for "internal allegations" against her one rose on Monday morning and decided to sell only 16 shares the company.

At the close of business, less than 1,000 of the 34.7 million shares of the sole Irish listed local insurer had changed hands – and the stock had reversed a decline initial 0.9 percent 1.9 percent the day.

It is not every day that a publicly listed Irish company reveals that its board has ordered a review of the actions of its general manager. This makes the mixed response of the market all the more puzzling.

The newspaper Sunday Times reports that the person behind the allegations was Sarah Ryan, the director of human resources of the company, barely 10 months. FBD and Muldoon declined to comment on this issue and Ryan could not be reached for comment.

Convertible

Also mom were representatives of the Canadian investment group Fairfax Financial, which is entitled to a loan bailout of € 70 million in FBD three years ago, to take a 19 percent stake in the company as early as next year.

The loan is convertible into shares at 8.50 euros each, provided to stay above this level for 180 days after the third anniversary of the investment of September 2015.

Fairfax is theoretically well in the money, with a purse of 10.60 €, having jumped by nearly three quarters since the signing of the agreement

Impressed

No doubt the founder and chief executive of the Canadian group Prem Watsa was strongly impressed by the FBD turnaround under Muldoon. The company returned to profit in 2016 after major surgery, including the sale of real estate, reduced reliance on brokers, higher insurance premiums and the closing of its defined benefit pension plan. He paid his first dividend since 2014 earlier this year.

But the financial recovery of FBD took place in the context of a number of senior departures. And now this allegation. Shareholders may not be bothered by the ongoing investigation, but it is in everyone's interest to wrap up quickly.