FBD HOLDINGS PLC 2006 INTERIM RESULTS
Forward Looking Statements This presentation contains certain forward-looking statements. Actual results may differ materially from those projected or implied in such forward-looking statements. Such forward-looking information involves risks and uncertainties that could affect expected results
Introduction to FBD Holdings plc • Insurance underwriting……… our primary business • leading position in target markets • strong brand identity • Non – underwriting • property/leisure • financial services • Excellent growth record.
Operational Highlights of 2006 to date Underwriting • Strong new business volumes more than offset reduced premium rates. • Policy count at 30th June 2006 up 7% on December 2005. • Branch network enhanced and Dublin personal lines unit strengthened. • Growth in Dublin market continuing • Increased investment in infrastructure and people - VOIP/Business Support Centre – (Mullingar) - Workflow systems to enhance efficiency - New off-site IT availability for resilience/flexibility
Operational Highlights of 2006 to date Non-Underwriting La Cala • Conditional agreement to sell 96 hectares of development land at La Cala entered into on 23rd February 2006 for a total consideration of €201m in phased cash payments, apportioned between two tranches of land. • Initial consideration payment of €100m arising on the Tranche I land was received on 22nd June 2006. Balance of Tranche I consideration of €21m due on 30th June 2007. • Profit before tax of €83.6m on Tranche I land recognised. • Caracala Spa opened at La Cala resort. Sunset/Tower • Improvement in visitor numbers
Operational Highlights of 2006 to date Corporate • Farmer Business Developments plc reduces shareholding from 34% to 24.8% via placing of 4.5m shares. (11.6% of share capital). • FBD partakes in the placing…….buys back 3.8m shares (10% of share capital) for €129m….. shares cancelled. • Free float moves to 67% • Special dividend of €1.60 per share declared on foot of receipt of consideration for tranche I land at La Cala – total of €55m paid 11th August 2006.
Market Share – Gross Written Premium – 2005 (IIF) All Business Total Market 2005 - €3,841m: 2004 - €3,957m : 2003 - €4,239m : 2002 - €3,955m FBD Premium 2005 - €389m : 2004 - €351m. : 2003 - €369m : 2002 - €326m
OUTLOOK Group • On schedule to deliver a full year operating performance which will fulfil expectations. Underwriting • Price competition and discounting continuing and will continue to impact margins into the future. • Further volume growth targeted. • Further infrastructural and people investment planned. • Recent Government initiatives – outcome awaited. • Claims reserving policy under ongoing review. • Combined ratio to gravitate to European norms.
OUTLOOK…Contd. Non-Underwriting • Property/Leisure - Businesses to deliver improved performances in challenging environment. - Operational plans being implemented/ modified to further improve returns. • Financial Services - Falling commercial premiums will impact income of general insurance brokerage. - Impact to be mitigated by excellent retention levels and activity in other financial services businesses.
OUTLOOK…Contd. Capital • Proactive approach to capital management confirmed. - Share buyback in June 2006 - Distribution of proceeds of La Cala land sale. • Dividend payout to continue to increase. • Continuing assessment of opportunities to invest in core/related financial businesses with a view to maximising shareholder returns • ……. Meanwhile, prudent investment.