TIDMFBH 
 
RNS Number : 7380C 
FBD Holdings PLC 
19 November 2009 
 

FBD Holdings PLC 
19 November 2009 
 
 
INTERIM MANAGEMENT STATEMENT 
FBD Holdings plc ('FBD' or the 'Group') issues the following Interim Management 
Statement covering the period from 1 July 2009 to date. 
 
 
Business Overview 
In challenging market conditions, FBD has maintained a solid trading performance 
and delivered operating profits in the second half of 2009 to date. 
 
 
Underwriting 
 
 
Insurable risk across the Irish insurance industry continues to decline in line 
with the level of economic activity and consumer spending.  Market rate 
increases have continued in the second half of 2009 to date, compensating for 
some of the fall in market volumes and cover. 
 
 
Market rates are approaching, but have not yet reached, levels at which it is 
appropriate for FBD to seek to grow business volumes. Therefore, the Group has 
continued to prioritise underwriting discipline over volume growth. FBD 
estimates that its market share year to date is similar to that of last year. 
The decline in premium in the second half has moderated relative to that 
recorded in the first half. The pricing environment will be kept under constant 
review. 
 
 
FBD has continued to deliver progress on its initiatives to increase penetration 
of the Dublin and large urban markets. Initiatives to grow commercial lines are 
underway via the direct sales force and through intermediaries. NoNonsense.ie 
and fbd.ie (our personal lines online offerings) continue to attract a higher 
proportion of customers from Dublin and other urban centres, outperforming the 
market year to date. In September, FBD launched an on-line insurance renewal 
facility on www.fbd.ie, which has improved both customer service and efficiency. 
Take-up to date is ahead of expectations. 
 
 
Ireland continues to experience a reduction in the number of road accidents and 
deaths, resulting in lower frequency of motor injury claims. The Group's loss 
ratio has improved in the second half of 2009 to date and there is a continuing 
improvement in the underlying loss ratio (excluding claims that are 
exceptionally large or weather related). The loss ratio also benefited from the 
Group's timely action on rates and its initiatives to reduce the cost of claims. 
 
 
Net operating expenses for the second half of 2009 to date are within budget and 
lower than the first half of the year. The Group has continued to implement 
initiatives to control costs. FBD has completed the realignment of its local 
office network in response to changing customer behaviour and to enable local 
offices to focus on farming and commercial customers. The Group's lower cost 
ratio provides a maintainable competitive advantage that delivers better value 
premiums to customers and allows profitable market share growth. 
 
 
 
 
Non-Underwriting 
 
 
In very challenging market conditions, FBD's property and leisure businesses in 
Ireland and Spain have delivered operating profits and cash flows in the second 
half of 2009 to date. Over-supply in the marketplace is the key challenge facing 
the property and leisure businesses in Ireland and market capacity needs to 
reduce to match falling customer demand. Sunset Beach resort performed 
particularly strongly. New marketing and sales initiatives and operational cost 
efficiencies continue to be identified and implemented to achieve targets. 
 
 
FBD's financial services businesses continued to deliver solid performances in 
difficult market environments. These businesses have proactively managed their 
cost structures to reflect the economic environment. 
 
 
 
 
Financial Position 
 
 
The Group continues to have a strong capital base and balance sheet and a 
prudent reserving strategy. The board is committed to maintaining strong 
solvency and liquidity margins. 
 
 
The Group's property assets were independently valued by professional external 
valuers at 30 June 2009 and the results incorporated into the 2009 Half Yearly 
Report. A similar valuation process will be undertaken at 31 December 2009. 
 
 
 
 
Outlook 
 
 
Barring exceptional claims events during the remainder of the year, the Group is 
confident that full year operating earnings per share will be ahead of the 
current mean expectation of broker forecasts*. 
 
 
FBD Insurance will focus on profitable growth, maintaining underwriting 
discipline and constantly evolving its business to reflect customers' needs. The 
Group will continue to implement its plans to increase penetration of key urban 
markets, in particular Dublin. Further opportunities to enhance its cost 
advantage will be identified and implemented. 
 
 
The Group expects to deliver operating profits in both its underwriting and 
non-underwriting businesses in 2009 and is confident that it is well positioned 
to deliver profitable growth and superior returns to shareholders going forward. 
 
 
 
 
 
 
 
 
* An FBD survey of the forecasts of the six analysts who cover the Group 
indicates a mean operating earnings per share for 2009 of 86 cent per share (a 
range of 63 cent to 104 cent per share). 
 
 
 
 
+-------------------------------------------+----------------------------+ 
| For Reference                             | Telephone                  | 
+-------------------------------------------+----------------------------+ 
| FBD                                       |                            | 
+-------------------------------------------+----------------------------+ 
| Andrew Langford, Group Chief Executive    | + 353 1 409 3208           | 
+-------------------------------------------+----------------------------+ 
| Cathal O'Caoimh, Group Finance Director   | + 353 1 409 3208           | 
+-------------------------------------------+----------------------------+ 
|                                           |                            | 
+-------------------------------------------+----------------------------+ 
| Murray Consultants                        |                            | 
+-------------------------------------------+----------------------------+ 
| Joe Murray                                | + 353 1 498 0300           | 
+-------------------------------------------+----------------------------+ 
 
 
 
 
FBD Holdings plc, FBD House, Bluebell, Dublin 12, Ireland. 
Registered in Dublin, Ireland. Registered Number 135882. 
 
 
 
 
FORWARD LOOKING STATEMENTS 
 
 
Some statements in this announcement are forward-looking. They represent 
expectations for the Group's business, and involve risks and uncertainties. 
These forward-looking statements are based on current expectations and 
projections about future events. The Group believes that current expectations 
and assumptions with respect to these forward-looking statements are reasonable. 
However, because they involve known and unknown risks, uncertainties and other 
factors, which are in some cases beyond the Group's control, actual results or 
performance may differ materially from those expressed or implied by such 
forward-looking statements. 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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