RNS Number:5401I
FBD Holdings PLC
06 September 2006
Press Release
INTERIM RESULTS ANNOUNCEMENT
For half year ended 30th June 2006
2006 2005
FINANCIAL HIGHLIGHTS Euro000's Euro000's
*Gross written premiums 203,996 192,360
*Net earned premiums 173,166 164,515
*Operating profit * 75,721 86,849
*Profit on sale of land at La Cala 83,626 -
*Profit before taxation 157,445 106,769
Cent Cent
*Operating earnings per share * 173.11 192.07
*Interim dividend proposed per share 24.00 20.00
*Special dividend per share (paid) - La Cala
land sale 160.00 -
* Based on a longer term rate of investment return
Commenting on the results, Philip Fitzsimons, Chief Executive, said:
"The Group maintained its strong trading performance in the period and achieved
an operating profit of Euro75.7m. The main contributor to this outcome was the
underwriting result. Premium income increased by 6%, driven by strong new
business volumes which more than offset the impact of reductions in premiums
which customers enjoyed. Reduced premium levels have impacted on margins, which
continue to gravitate towards European norms.
The profit on the sale of land at La Cala Resort in Spain made a significant
contribution to the Group's overall result.
Shareholders have benefited from the special dividend arising on the La Cala
land sale and from the increased interim dividend that has been declared. They
have also benefited from the positive impact on earnings per share arising from
the buyback of 3.8m shares on June 28th 2006.
All of our businesses continue to perform satisfactorily and we are confident
regarding the outcome for the full year. We continue to focus on maximising
returns to shareholders."
ENDS 6th September 2006
For Reference
Telephone
FBD
Philip Fitzsimons, Chief Executive 01 4093208
Andrew Langford, Finance Director 01 4093208
Murray Consultants
Joe Murray 01 4980300
FBD HOLDINGS PLC
INTERIM STATEMENT
FBD Holdings plc ("FBD" or "the Group") is pleased to report that it maintained
its strong trading performance in the half year ended 30th June 2006.
Results
Operating profit achieved by the Group in the period amounted to Euro75.7m (H1
2005: Euro86.8m), somewhat ahead of target, due to a better out-turn in our primary
underwriting business.
Total income amounted to Euro207.2m (H1 2005: Euro199.3m). It included net premiums
earned of Euro173.2m (H1 2005: Euro164.5m) and investment income (calculated on the
basis of longer term returns) of Euro23.8m (H1 2005: Euro21.8m), both of which arise
in the Group's insurance underwriting business. The remaining Euro10.3m (H1 2005:
Euro13.0m) represents the net income, i.e. after expenses, that arises in the
Group's non-underwriting activities.
Expenses amounting to Euro131.5m (H1 2005: Euro112.5m) related to the Group's
underwriting business. They consist of claim costs amounting to Euro108.5m (H1
2005: Euro91.7m) and operating expenses of Euro23.0m (H1 2005: Euro20.8m).
Of the Group's operating profit, Euro65.4m (H1 2005: Euro73.8m) is attributable to
underwriting and Euro10.3m (H1 2005: Euro13.0m) to non-underwriting, as detailed
below.
Profit arising from the proceeds of the La Cala first tranche land sale,
amounted to Euro83.6m.
Short term fluctuations in investment returns amounted to Euro0.3m (H1 2005:
Euro21.7m).
The profit before taxation, after charging finance costs of Euro2.2m (H1 2005:
Euro1.8m), was Euro157.4m (H1 2005: Euro106.8m).
Operating earnings per share, based on longer term investment returns, amounted
to 173.11c (H1 2005: 192.07c) in the period.
Underwriting.
Insurance underwriting (FBD Insurance) is the Group's primary business activity.
Gross written premiums (i.e. before reinsurance) amounted to Euro204.0m (H1 2005:
Euro192.4m), an increase of 6% on the corresponding 2005 period. This increase is
attributable to strong volume growth which more than offset the negative impact
of premium reductions which had been implemented in the preceding 12 months.
Net earned premiums amounted to Euro173.2m (H1 2005: Euro164.5m), an increase of 5.3%.
The net claims incurred charge, which is comprised of the movement in net
outstanding claims provisions of Euro13.8m (H1 2005: Euro13.6m) plus net claims paid
of Euro94.7m (H1 2005: Euro78.1m) amounted to Euro108.6m (H1 2005: Euro91.7m). The increased
claims charge, relative to first half 2005, reflects the increased exposure
arising from growth in our policy numbers, combined with the particularly benign
claims outcome experienced in the comparative period. The claims charge,
nonetheless, was within our budgeted range. Savings on prior year provisions had
a considerable positive impact on the claims incurred charge, in keeping with
recent accounting periods. We anticipate that for the year as a whole, such
savings will be on a par with 2005.
Net operating expenses amounted to Euro23.0m (H1 2005: Euro20.8m). The additional
investment in the business infrastructure (i.e. staff, training, technology,
facilities and marketing) necessary to deliver our growth objectives, resulted
in increased expenses, as anticipated.
The foregoing premium/claim/expenses figures resulted in an underwriting profit
of Euro41.6m (H1 2005: Euro52.0m), which was somewhat better than budget.
The net operating ratios for the period were: an underwriting loss ratio of
62.7% (FY 2005: 60.9%), reflecting lower margins as a result of reductions in
premium rates; a net expense ratio of 13.2% (FY 2005: 11.9%); a combined ratio
of 75.9% (FY 2005: 72.8%), which encompasses the aforementioned ratios.
After crediting investment income of Euro23.8m (H1 2005: Euro21.8m), the operating
profit of the Group's insurance business amounted to Euro65.4m (H1 2005: Euro73.8m).
Non-underwriting
The Group's non-underwriting activities embrace property development/leisure,
financial services, and the investment of non-allocated capital ("capital
fund"). These interests performed to budget, contributing Euro10.3m (H1 2005:
Euro13.0m) to operating profit.
Property and Leisure interests, which include La Cala and Sunset Beach resorts
in Spain and the Tower Hotel Group in Ireland, contributed Euro3.7m (H1 2005:
Euro6.4m) to operating profits. The 2005 comparative figure included fees arising
on completion of a property related loan. Our property and leisure businesses
have performed satisfactorily in what continues to be a challenging environment.
The Group's financial service businesses include insurance broking (FBD
Brokers), life assurance/pension broking/ investment advice (FBD Life) and
instalment finance (Abbey Finance). These businesses contributed Euro2.8m. (H1
2005: Euro2.5m) to the half year figure.
Investment returns on the capital fund amounted to Euro3.8m (H1 2005: Euro4.1m). This
fund is invested in equities.
Profit on Sale of Land at La Cala
On 23 February 2006, Ranchos Reunidos S.A., a 100% subsidiary of the group,
entered into a conditional agreement to sell a major portion of the building
development land which it owned at La Cala Resort, Mijas, Costa del Sol, Spain,
for a total consideration of Euro201,000,000. The consideration was constituted in
two parts, apportioned between two tranches of land.
On 22 June 2006, the initial consideration payment of Euro100,000,000 arising on
the Tranche I land was received. The remainder of the Tranche I consideration,
amounting to Euro21,000,000 is due to be received on 30 June 2007. The group has
recognised a profit of Euro83,626,000 on the sale of the Tranche I development land
in the six month period to 30 June 2006.
The consideration, amounting to Euro80,000,000, for the Tranche II land, becomes
payable at a later date, contingent on receipt of final planning approval from
the Spanish Regional Planning Authority.
Balance Sheet
Total assets at 30th June 2006 amounted to Euro1,670.3m compared to Euro1,564.4m at
year end, an increase of 6.8% in the period. Equity shareholders' funds amounted
to Euro450.6m (31/12/05: Euro476.1m). A buyback of 3.8m shares at a cost of Euro129.2m
was undertaken during the period. All of the shares purchased were cancelled. In
the absence of the buyback, shareholders' funds would have grown by Euro104.3m.
The downturn in investment markets that occurred in the run-up to 30th June 2006
reversed somewhat in the final days of June and resulted in short term
fluctuations in investment return of Euro0.3m and an investment return of Euro3.8m on
the capital fund. The balance sheet at the said date reflects this reality. The
markets' recovery since 30th June 2006 has improved our investment position.
Special Dividend
When the Group announced in February 2006 that a conditional agreement had been
entered into for a La Cala land sale, as referred to above, shareholders were
advised of the Board's intention to distribute the net cash proceeds arising
from the overall transaction. On foot of the proceeds received for the first
tranche of land on 22nd June 2006, a special dividend of Euro1.60 per share was
declared, amounting to Euro55m. This dividend was paid on 11th August 2006.
Interim Dividend
In the light of the Group's continued favourable results and the Board's stated
intention to increase the proportion of earnings distributed to shareholders, an
interim dividend of 24.00c (H1 2005: 20.00c) per share has been decided on by
the Directors. This represents a 20% increase on the 2005 interim dividend.
The interim dividend will be paid on 6th October 2006 to shareholders on the
Company's Register at the close of business on 15th September 2006. The interim
dividend is subject to withholding tax ("DWT") except for shareholders who are
exempt from DWT and who have furnished a properly completed Composite Resident
Form to the Company's Registrar.
Outlook
The Group is on schedule to deliver a performance for the year which we are
confident will fulfil expectations.
In relation to our core underwriting business, the insurance environment in
which we operate is one where competition is intense and premiums continue to
reduce. Consequently, margins are being eroded, notwithstanding the fact that
injury claims frequency and injury costs have remained at the improved levels
obtaining post the Motor Insurance Advisory Board ("MIAB"). Government
determination to pursue the reforms which it has initiated is crucial to
delivering the desired claims environment for insured and insurer alike.
Combined ratios continue to gravitate towards European norms. This is as we have
anticipated and signalled. It must also be borne in mind that, arising from the
improved claims environment referred to earlier, insurers' claims incurred
charges have benefited from savings on prior year provisions. The foregoing
factors, which combine to create the particular nature of the Irish insurance
market at this point in time, must be considered when budgeting for the future
and when planning ahead.
It is against this backdrop that we have formulated and are implementing
development plans for our insurance underwriting business. Our plans, as already
mentioned, require an investment in people, in training, in technology, in
facilities and in marketing, underpinned by efficient business processes and
proper cost control. They are pivotal to achieving our business goals. The
success of this strategy has been reflected in the strong growth in policy
numbers over the past number of years.
In relation to our non-underwriting businesses, we will continue to implement
strategies to maximise returns from our interests. Individual strategies,
appropriate for each of these interests, will be adopted as circumstances and
opportunities determine.
In relation to the utilisation of capital, the Board is fully cognisant of the
requirement to maximise it for the benefit of shareholders. The decision of the
Board to participate by way of a share buyback in the June 2006 share placing by
the Group's largest shareholder is evidence of a proactive approach to capital
management. Likewise, the decision of the Board to distribute the net proceeds
of the La Cala land sale indicates the Board's view that capital will not
necessarily be retained, merely for retention sake. The Group continues to
investigate all opportunities to invest in the Group's primary business of
insurance underwriting, or in related financial service activities. As in the
past, other options for use of capital are not ruled out if deemed to be in the
best interests of shareholders.
With clearly defined objectives being pursued in all our business activities, we
are confident regarding the outcome for the full year and remain focused on
maximising returns to shareholders.
ENDS
Note: Management will present these results to analysts at 9.30 am.
today. A copy of the presentation will be posted on the Group's website,
www.fbd.ie, at that time.
FBD HOLDINGS PLC
GROUP INCOME STATEMENT
For half year ended 30th June 2006
Notes Half Year Half Year Year
Ended Ended Ended
30/06/06 30/06/05 31/12/05
(Unaudited) (Unaudited) (Audited)
Euro000's Euro000's Euro000's
Turnover 403,286 263,463 531,747
Income
Net premiums earned 173,166 164,515 332,371
Non underwriting 10,299 13,024 27,739
operating income
Investment income -
longer term
rate of return 23,773 21,781 44,435
207,238 199,320 404,545
Expenses
Changes in insurance
liabilities
net of reinsurance (13,816) (13,595) (38,809)
Claims paid, net of
recoveries from
reinsurers (94,742) (78,132) (163,666)
Other operating
expenses (22,959) (20,744) (39,446)
Operating profit 2 75,721 86,849 162,624
Profit on sale of land 4
at La Cala 83,626 - -
Investment income -
short term fluctuation 318 21,738 25,956
Finance costs (2,220) (1,818) (3,425)
Profit before taxation 157,445 106,769 185,155
Income tax expense (34,845) (12,849) (23,701)
Profit for the period 122,600 93,920 161,454
Attributable to:
Equity holders of the
parent 122,599 94,004 161,500
Minority interest 1 (84) (46)
122,600 93,920 161,454
Cent Cent Cent
Earnings per 60c
ordinary share 321.99 237.41 416.09
Diluted earnings per
60c ordinary share 318.92 234.04 411.45
FBD HOLDINGS PLC
GROUP BALANCE SHEET
At 30th June 2006
As at As at As at
30/06/06 30/06/05 31/12/05
ASSETS Notes (Unaudited) (Unaudited) (Audited)
Euro000's Euro000's Euro000's
Property and equipment
Land and buildings 199,599 198,108 196,923
Fixtures and fittings 13,759 9,638 13,302
213,358 207,746 210,225
Intangible assets
Deferred acquisition costs 13,043 10,590 11,849
Investments
Investment property 59,916 48,800 48,856
Investments held for trading 503,113 449,503 477,310
Available for sale
investments 47,071 31,758 47,290
Investments held to maturity 13,768 13,740 13,740
Deposits with banks 485,184 407,511 443,042
1,109,052 951,312 1,030,238
Inventories 59,484 56,977 62,496
Loans and receivables 158,073 139,151 141,673
Reinsurers' share of technical
provisions
Provision for unearned premiums 20,347 19,927 19,412
Claims outstanding 59,147 50,271 46,622
79,494 70,198 66,034
Cash and cash equivalents 37,747 36,553 41,897
Total assets 1,670,251 1,472,527 1,564,412
FBD HOLDINGS PLC
GROUP BALANCE SHEET
At 30th June 2006
As at As at As at
30/06/06 30/06/05 31/12/05
EQUITY Notes (Unaudited) (Unaudited) (Audited)
Euro000's Euro000's Euro000's
Share capital 6 21,277 23,557 23,557
Capital reserves 12,434 9,178 9,813
Revaluation reserves 41,381 39,442 47,706
Translation reserves 101 1,766 435
Retained earnings 375,401 337,991 394,616
Shareholders' funds - equity
interests 450,594 411,934 476,127
Preference share capital 2,923 2,923 2,923
Total shareholders' funds 453,517 414,857 479,050
Minority interests 6,424 6,293 6,423
Total equity 459,941 421,150 485,473
LIABILITIES
Technical provisions
Provision for unearned
premiums 196,150 188,363 188,953
Claims outstanding 725,738 677,834 699,397
921,888 866,197 888,350
Bank and other loans 100,803 77,149 99,831
Creditors 153,486 78,726 54,829
Deferred tax 32,077 29,305 33,873
Retirement benefit obligation 2,056 - 2,056
Total liabilities 1,670,251 1,472,527 1,564,412
FBD HOLDINGS PLC
GROUP CASH FLOW STATEMENT
For half year ended 30th June 2006
Half Year Half Year Year
Ended Ended Ended
30/06/06 30/06/05 31/12/05
(Unaudited) (Unaudited) (Audited)
Operating activities Euro000s Euro000s Euro000s
Profit before taxation
for the period 157,445 106,769 185,155
Adjustments for:
Losses (gains) on investments
held for trading and held to
maturity 3,186 ( 22,084) ( 41,031)
Depreciation of property,
plant and equipment 1,978 1,801 3,487
Share-based payment expense 341 139 774
Increase in technical
provisions 21,029 18,379 44,696
Retirement benefit charges - - ( 3,802)
Profit on sale of land at
La Cala (83,626) - -
Operating cash flows before
movement in working capital 100,353 105,004 189,279
Increase in receivables ( 31,350) ( 5,644) ( 4,274)
Increase (decrease) in payables 64,418 ( 35,822) ( 22,863)
Cash generated from operations 133,421 63,538 162,142
Income taxes paid ( 3,458) ( 4,949) ( 20,516)
Net cash from operating
activities 129,963 58,589 141,626
Investing activities
Investments held for trading ( 29,578) ( 87,650) ( 96,510)
Investments available for
sale 751 ( 299) ( 5,162)
Sale (purchase) of lands,
buildings & inventory 83,960 ( 8,025) ( 13,430)
Purchase of fixtures &
fittings ( 5,248) ( 892) ( 6,242)
Purchase of investment property ( 11,060) ( 24,600) ( 24,656)
Loans and advances 13,755 1,403 (3,789)
Deposits invested with
financial institutions ( 42,142) 130,909 95,378
Net cash from (used in)
investing activities 10,438 10,846 ( 54,411)
Financing activities
Dividends paid ( 14,446) ( 10,466) ( 18,158)
Repurchase of shares ( 129,212) ( 81,238) ( 81,238)
Proceeds of re-issue of
ordinary shares 414 617 1,409
(Decrease) increase in
bank loans ( 973) 5,448 1,243
Net cash used in financing
activities ( 144,217) ( 85,639) ( 96,744)
Net decrease in cash and
cash equivalents ( 3,816) ( 16,204) ( 9,529)
Cash and cash equivalents at
the beginning of the period 41,897 51,362 51,362
Effect of foreign exchange
rate changes ( 334) 1,395 64
Cash and cash equivalents at
the end of the period 37,747 36,553 41,897
FBD HOLDINGS PLC
GROUP STATEMENT OF CHANGES IN EQUITY
For half year ended 30th June 2006
Share Capital Revaluation Translation Retained Attributable
capital reserves and other reserve earnings to ordinary
Euro000s Euro000s reserves Euro000s Euro000s shareholders
Euro000s Euro000s
Balance at 1
January 2005 25,151 7,445 38,581 371 334,905 406,453
Preference Minority Total
share interests Euro000s
capital Euro000s
Euro000s
Balance at 1
January 2005 2,923 16,333 425,709
Share Capital Revaluation Translation Retained Attributable
capital reserves and other reserve earnings to ordinary
Euro000s Euro000s reserves Euro000s Euro000s shareholders
Euro000s Euro000s
Profit after
taxation - - - - 94,004 94,004
Preference Minority Total
share interests Euro000s
capital Euro000s
Euro000s
Profit after
taxation - (84) 93,920
Share Capital Revaluation Translation Retained Attributable
capital reserves and other reserve earnings to ordinary
Euro000s Euro000s reserves Euro000s Euro000s shareholders
Euro000s Euro000s
Exchange
translation
adjustment - - - 1,395 - 1,395
Preference Minority Total
share interests Euro000s
capital Euro000s
Euro000s
Exchange
translation
adjustment - - 1,395
Share Capital Revaluation Translation Retained Attributable
capital reserves and other reserve earnings to ordinary
Euro000s Euro000s reserves Euro000s Euro000s shareholders
Euro000s Euro000s
Ordinary
dividends paid - - - - (10,298) (10,298)
Preference Minority Total
share interests Euro000s
capital Euro000s
Euro000s
Ordinary
dividends paid - - (10,298)
Share Capital Revaluation Translation Retained Attributable
capital reserves and other reserve earnings to ordinary
Euro000s Euro000s reserves Euro000s Euro000s shareholders
Euro000s Euro000s
Buyback of own
shares - - - - (81,238) (81,238)
Preference Minority Total
share interests Euro000s
capital Euro000s
Euro000s
Buyback of own
shares - - (81,238)
Share Capital Revaluation Translation Retained Attributable
capital reserves and other reserve earnings to ordinary
Euro000s Euro000s reserves Euro000s Euro000s shareholders
Euro000s Euro000s
Cancellation
of own shares (1,594) 1,594 - - - -
Preference Minority Total
share interests Euro000s
capital Euro000s
Euro000s
Cancellation
of own shares - - -
Share Capital Revaluation Translation Retained Attributable
capital reserves and other reserve earnings to ordinary
Euro000s Euro000s reserves Euro000s Euro000s shareholders
Euro000s Euro000s
Reissue of
ordinary
shares - - - - 618 618
Preference Minority Total
share interests Euro000s
capital Euro000s
Euro000s
Reissue of
ordinary
shares - - 618
Share Capital Revaluation Translation Retained Attributable
capital reserves and other reserve earnings to ordinary
Euro000s Euro000s reserves Euro000s Euro000s shareholders
Euro000s Euro000s
Recognition of
share based
payments - 139 - - - 139
Preference Minority Total
share interests Euro000s
capital Euro000s
Euro000s
Recognition of
share based
payments - - 139
Share Capital Revaluation Translation Retained Attributable
capital reserves and other reserve earnings to ordinary
Euro000s Euro000s reserves Euro000s Euro000s shareholders
Euro000s Euro000s
Transfer to
income
statement on
sale of
available-for-
sale
investments - - (5,583) - - (5,583)
Preference Minority Total
share interests Euro000s
capital Euro000s
Euro000s
Transfer to
income
statement on
sale of
available-for-
sale
investments - - (5,583)
Share Capital Revaluation Translation Retained Attributable
capital reserves and other reserve earnings to ordinary
Euro000s Euro000s reserves Euro000s Euro000s shareholders
Euro000s Euro000s
Gain on
available-for-
sale
investments - - 6,444 - - 6,444
Preference Minority Total
share interests Euro000s
capital Euro000s
Euro000s
Gain on
available-for-
sale
investments - - 6,444
Share Capital Revaluation Translation Retained Attributable
capital reserves and other reserve earnings to ordinary
Euro000s Euro000s reserves Euro000s Euro000s shareholders
Euro000s Euro000s
Purchase of
minority
interests - - - - - -
Preference Minority Total
share interests Euro000s
capital Euro000s
Euro000s
Purchase of
minority
interests - (9,956) (9,956)
Balance at 30
June 2005 23,557 9,178 39,442 1,766 337,991 411,934
Preference Minority Total
share interests Euro000s
capital Euro000s
Euro000s
2,923 6,293 421,150
Share Capital Revaluation Translation Retained Attributable
capital reserves and other reserve earnings to ordinary
Euro000s Euro000s reserves Euro000s Euro000s shareholders
Euro000s Euro000s
Balance at 1
January 2006 23,557 9,813 47,706 435 394,616 476,127
Preference Minority Total
share interests Euro000s
capital Euro000s
Euro000s
2,923 6,423 485,473
Share Capital Revaluation Translation Retained Attributable
capital reserves and other reserve earnings to ordinary
Euro000s Euro000s reserves Euro000s Euro000s shareholders
Euro000s Euro000s
Profit after
taxation - - - - 122,599 122,599
Preference Minority Total
share interests Euro000s
capital Euro000s
Euro000s
- 1 122,600
Share Capital Revaluation Translation Retained Attributable
capital reserves and other reserve earnings to ordinary
Euro000s Euro000s reserves Euro000s Euro000s shareholders
Euro000s Euro000s
Exchange
translation
adjustment - - - (334) - (334)
Preference Minority Total
share interests Euro000s
capital Euro000s
Euro000s
- - (334)
Share Capital Revaluation Translation Retained Attributable
capital reserves and other reserve earnings to ordinary
Euro000s Euro000s reserves Euro000s Euro000s shareholders
Euro000s Euro000s
Ordinary
dividends paid - - - - (14,277) (14,277)
Preference Minority Total
share interests Euro000s
capital Euro000s
Euro000s
- - (14,277)
Share Capital Revaluation Translation Retained Attributable
capital reserves and other reserve earnings to ordinary
Euro000s Euro000s reserves Euro000s Euro000s shareholders
Euro000s Euro000s
Buyback of own
shares - - - - (129,212) (129,212)
Preference Minority Total
share interests Euro000s
capital Euro000s
Euro000s
- - (129,212)
Share Capital Revaluation Translation Retained Attributable
capital reserves and other reserve earnings to ordinary
Euro000s Euro000s reserves Euro000s Euro000s shareholders
Euro000s Euro000s
Cancellation
of own shares (2,280) 2,280 - - - -
Preference Minority Total
share interests Euro000s
capital Euro000s
Euro000s
- - -
Share Capital Revaluation Translation Retained Attributable
capital reserves and other reserve earnings to ordinary
Euro000s Euro000s reserves Euro000s Euro000s shareholders
Euro000s Euro000s
Reissue of
ordinary
shares - - - - 414 414
Preference Minority Total
share interests Euro000s
capital Euro000s
Euro000s
- - 414
Share Capital Revaluation Translation Retained Attributable
capital reserves and other reserve earnings to ordinary
Euro000s Euro000s reserves Euro000s Euro000s shareholders
Euro000s Euro000s
Recognition of
share based
payments - 341 - - - 341
Preference Minority Total
share interests Euro000s
capital Euro000s
Euro000s
- - 341
Share Capital Revaluation Translation Retained Attributable
capital reserves and other reserve earnings to ordinary
Euro000s Euro000s reserves Euro000s Euro000s shareholders
Euro000s Euro000s
Transfer to
income
statement on
sale of
available-for-
sale
investments - - (6,856) - - (6,856)
Preference Minority Total
share interests Euro000s
capital Euro000s
Euro000s
- - (6,856)
Share Capital Revaluation Translation Retained Attributable
capital reserves and other reserve earnings to ordinary
Euro000s Euro000s reserves Euro000s Euro000s shareholders
Euro000s Euro000s
Gain on
available-for-
sale
investments - - 531 - - 531
Preference Minority Total
share interests Euro000s
capital Euro000s
Euro000s
- - 531
Share Capital Revaluation Translation Retained Attributable
capital reserves and other reserve earnings to ordinary
Euro000s Euro000s reserves Euro000s Euro000s shareholders
Euro000s Euro000s
Deferred tax
on insurance
contracts - - - - 1,261 1,261
Preference Minority Total
share interests Euro000s
capital Euro000s
Euro000s
- - 1,261
Share Capital Revaluation Translation Retained Attributable
capital reserves and other reserve earnings to ordinary
Euro000s Euro000s reserves Euro000s Euro000s shareholders
Euro000s Euro000s
Balance at 30
June 2006 21,277 12,434 41,381 101 375,401 450,594
Preference Minority Total
share interests Euro000s
capital Euro000s
Euro000s
2,923 6,424 459,941
FBD HOLDINGS PLC
SUPPLEMENTARY INFORMATION
For half year ended 30th June 2006
Note 1 Accounting policies
The accounting policies used by the Group to prepare the interim financial
statements for the six month period ended 30 June 2006, are the same as those
used to prepare the annual financial statements for the year ended 31 December
2005.
Note 2 Operating profit by activity
Half Year Ended Half Year Ended Year Ended
30/06/06 30/06/05 31/12/05
(Unaudited) (Unauditied) (Audited)
Euro000s Euro000s Euro000s
Underwriting 65,422 73,825 134,885
Non underwriting 10,299 13,024 27,739
75,721 86,849 162,624
Note 3 Underwriting result
Half Year Ended Half Year Ended Year Ended
30/06/2006 30/06/2005 31/12/2005
Euro000s Euro000s Euro000s
Gross written premiums 203,996 192,360 389,472
Net earned premiums 173,166 164,515 332,371
Net claims incurred ( 108,558) ( 91,727) ( 202,475)
Net operating expenses ( 22,959) ( 20,744) ( 39,446)
Underwriting result 41,649 52,044 90,450
Note 4 Profit on sale of land at La Cala
On 23 February 2006, Ranchos Reunidos S.A., a 100% subsidiary of the group,
entered into a conditional agreement to sell a major portion of the building
development land which it owned at La Cala Resort, Mijas, Costa del Sol, Spain,
for a total consideration of Euro201,000,000. The consideration was constituted in
two parts, apportioned between two tranches of land.
On 22 June 2006, the initial consideration payment of Euro100,000,000 arising on
the Tranche I land was received. The remainder of the Tranche I consideration,
amounting to Euro21,000,000 is due to be received on 30 June 2007. The group has
recognised a profit of Euro83,626,000 on the sale Tranche I development land in the
six month period to 30 June 2006.
The consideration, amounting to Euro80,000,000, for the Tranche II land, becomes
payable at a later date, contingent on receipt of final planning approval from
the Spanish Regional Planning Authority.
FBD HOLDINGS PLC
SUPPLEMENTARY INFORMATION
For half year ended 30th June 2006 (continued)
Note 5 Dividends
Half Year Half Year Year
Ended Ended Ended
30/06/2006 30/06/2005 31/12/2005
(Unaudited) (Unaudited) (Audited)
Euro000s Euro000s Euro000s
Paid in Period
2005 Interim dividend of
20.00c per share on ordinary
shares of 60c each - - 7,578
2005 Final dividend of 37.50c
(2004 27.28c) per share on
ordinary shares of 60c each 14,277 10,298 10,298
Dividend of 8.4c per share on
14% non-cumulative preference
shares of 60c each - - 113
2005 Dividend of 4.8c (2004:
4.8c) per share on 8%
non-cumulative preference
shares of 60c each 169 169 169
14,446 10,467 18,158
Proposed:
2005 Dividend of 8.4c per
share on 14% non-cumulative
preference shares of 60c each - - 169
2005 Final dividend of 37.50c
per share on ordinary shares
of 60c each - - 14,277
2006 Interim dividend of
24.00c (2005: 20.00c) per
share on ordinary shares of
60c each 8,247 7,578 -
Special dividend of 160.00c
per share on ordinary shares
of 60c each 54,978 - -
63,225 7,578 14,446
Note 6 Share capital
Half Year Ended Half Year Ended Year Ended
30/06/2006 30/06/2005 31/12/2005
(Unaudited) (Unaudited) (Audited)
Number Euro000s Euro000s Euro000s
Authorised
At beginning and
end of period/year:
Ordinary shares of
60c each 51,326,000 30,796 30,796 30,796
Issued and fully
paid:
At beginning of
period/year 39,261,206 23,557 25,151 25,151
Cancellation
of shares ( 3,800,000) ( 2,280) ( 1,594) ( 1,594)
At end of
period/year 35,461,206 21,277 23,557 23,557
The total number of shares held as treasury shares at 30 June 2006 was
1,099,900.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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