Fairfax Financial Holdings Ltd. is expected to take a 20% stake in Irish insurer FBD Holdings Plc, The Irish Times reported, citing FBD CEO Fiona Muldoon.

In 2015, Fairfax bought a €70 million convertible bond in the then-struggling FBD. Under the deal's terms, Fairfax can convert its bonds into equity September 2018 onward if shares remain above the conversion price of €8.50 for 180 days. The company reached a high of €8.60 on Aug. 4.

"I've no reason to believe they won't convert," Muldoon told The Irish Times.