TIDMFBH
RNS Number : 9799H
FBD Holdings PLC
03 March 2010
3rd March 2010
FBD HOLDINGS PLC
PRELIMINARY ANNOUNCEMENT
RESULTS FOR THE YEAR ENDED 31 DECEMBER 2009
+-----------------------------+------+--------------+--------------+
| FINANCIAL HIGHLIGHTS | | 2009 | 2008 |
| | | EUR000s | EUR000s |
+-----------------------------+------+--------------+--------------+
| * Gross premium written | | 357,244 | 385,638 |
+-----------------------------+------+--------------+--------------+
| * Net premium earned | | 314,604 | 343,075 |
+-----------------------------+------+--------------+--------------+
| * Operating profit | | 28,880 | 65,783 |
+-----------------------------+------+--------------+--------------+
| * Loss before taxation | | (34,644) | (38,607) |
+-----------------------------+------+--------------+--------------+
| | | | |
+-----------------------------+------+--------------+--------------+
| | | Cent | Cent |
+-----------------------------+------+--------------+--------------+
| * Operating earnings per | | 75 | 172 |
| share | | | |
+-----------------------------+------+--------------+--------------+
| * Dividend per ordinary | | 30 | 40 |
| share | | | |
+-----------------------------+------+--------------+--------------+
| * Net assets per 60c | | 576 | 709 |
| ordinary share | | | |
+-----------------------------+------+--------------+--------------+
| | | | |
+-----------------------------+------+--------------+--------------+
OPERATIONAL HIGHLIGHTS
* Continued solid operational performance in a challenging year, with operating
profit of EUR28.9m
* Profitable operating contribution from all divisions
* Maintained position as Ireland's second largest property and casualty insurer
* Adjustment of EUR57.8m following revaluation of assets leads to loss before tax
of EUR34.6m
* Final dividend of 20 cent per share
* Strong capital base and prudent reserving policy with solvency level of 52%
up from 50% in 2008
* The rate of contraction in gross premium written experienced early in 2009
slowed as the year progressed
* Although the results for 2009 were impacted by exceptional claims experience,
underlying operating trends improved
* Market rates hardened in 2009 and weather events late in year will
necessitate further increases
* Continuing implementation of cost improvements and claims initiatives
Commenting on the results, Andrew Langford, Group Chief Executive said;
"FBD delivered a solid operational performance in what was a challenging year
for both the insurance industry and Ireland's economy. Against a background of
unprecedented levels of weather related claims and an uncertain economic
environment, FBD's underwriting discipline and prudent reinsurance policy
protected the Group's operating results, its capital base and solvency. At the
same time, the Group made significant progress in advancing its strategic
priorities".
Ends.
A presentation will be made to analysts at 10.15am today, a copy of which will
be available
on our Group website, www.fbdgroup.com from that time.
About FBD Holdings plc
FBD is Ireland's second largest non-life insurer looking after the insurance
needs of private individuals, farmers and business owners. The Group has
developed complementary financial service businesses and has hotel and leisure
property interests that include four hotels in Ireland and two resorts in
southern Spain. The Group was established in the 1960s and is quoted on the
Irish and London stock exchanges.
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.
For Reference
Telephone
FBD
Andrew Langford, Group Chief Executive
01 4093208
Cathal O'Caoimh, Group Finance Director
01 4093208
Murray Consultants
Joe Murray
01 4980300
These results will be presented to analysts at 10.15 a.m., today, 3 March 2010.
A copy of the presentation will be posted on the Group's website,
www.fbdgroup.com, at that time.
Review of Operations
Overview
FBD continued to deliver solid operational performance in 2009, a challenging
year for both the insurance industry and Ireland's economy. Against a
background of an unprecedented level of weather related claims and the economic
decline, FBD's underwriting discipline and prudent reinsurance policy protected
the Group's trading results, its capital base and solvency. At the same time,
the Group made significant progress in advancing its strategic priorities.
At EUR28.9m, operating profit was lower than 2008. Operating profit in our
primary underwriting business was EUR22.4m and non-underwriting operating profit
was EUR6.5m. Profitability in the underwriting business was lower principally
because of (i) lower premium income as a result of the reduction in economic
activity, (ii) FBD's decision not to grow volume in certain areas at uneconomic
rates, (iii) a deterioration in the loss ratio and (iv) a lower longer term
investment return. The deterioration in the loss ratio relates particularly to
an unusual level of weather events and a higher cost of large claims. The
industry claims experience has contributed to a hardening of insurance rates
across the Irish market. Notably, the rate of decline in gross premium income
diminished as the year progressed.
Despite the impact of reducing volumes, industry data shows that FBD maintained
its position as the second largest property and casualty insurer in Ireland, a
position achieved for the first time in 2008. At the same time as maintaining
its market position, FBD's insurance risk exposure reduced.
Underwriting management expenses remained in line with 2008 as the expected
benefits of the office realignment process and other cost containment exercises
were crystalised.
In challenging market conditions, FBD's non-underwriting operations have
delivered a solid result. The Group's property & leisure businesses in Ireland
and Spain delivered operating profits and positive cash flows in 2009.
Oversupply in the market place is the key challenge facing the businesses and
market capacity needs to reduce to match falling consumer demand. New
marketing and sales initiatives and operational cost efficiencies continue to be
identified and implemented to achieve targets. Sunset Beach Resort performed
particularly strongly.
FBD's financial services businesses continued to deliver a solid performance in
difficult market environments. These businesses have proactively managed their
cost structures to reflect the economic circumstances.
The value of the Group's property assets has reduced in line with market values
in Ireland and Spain. Valuation adjustments of EUR63.1m (2008: EUR126.5m),
including EUR57.8m on the face of the consolidated income statement and EUR5.3m
directly to reserves, have been booked in 2009 on the basis of mark-to-market or
fair value accounting principles. After charging finance costs of EUR3.4m (2008:
EUR4.5m) the Group recorded a loss before tax of EUR34.6m (2008: EUR38.6m). FBD Group
continues to have a strong capital base and balance sheet. FBD Insurance had a
solvency level of 52% of net premium earned at 31 December 2009, up from 50% at
31 December 2008.
The Group's underlying operating performance improved significantly in the
second half of the financial year as a result of action on rates, the
implementation of claims initiatives and the benefit of cost reductions.
Business Review
Underwriting
The Irish insurance market contracted by 6% during 2009 as the
reduction in insurable risk and values more than offset increasing prices.
FBD's gross premium written reduced by 7.4% to EUR357.2m (2008: EUR385.6m) as the
Group was not prepared to grow volume in certain less profitable personal lines
segments. Net premium earned amounted to EUR314.6m (2008: EUR343.1m).
FBD's progress in Dublin and other large urban centres has continued with 13% of
total premium income now coming from Dublin and market share just below 5%. The
initiative launched in April 2008 to increase commercial lines business in
Dublin, via intermediaries, has proved successful and further brokers have been
added to our panel. NoNonsense.ie and FBD.ie (our on-line offerings) continue
to attract a higher proportion of customers from Dublin and other urban centres.
Following the realignment of our office network, local office staff are focused
on providing an enhanced level of service to our farming and commercial
customers, a key strategic priority.
Over 75% of motor and home insurance customers are now using the internet or
telephone to purchase insurance. For customers wishing to use the internet,
FBD.ie and NoNonsense.ie provide an on-line full service facility enabling
customers to choose the level of cover they require and pay on-line. In
September 2009, FBD.ie launched an on-line renewal facility that has improved
customer service and efficiency. Take up to date is ahead of expectations. For
customers wishing to organise their insurance over the phone, FBD's support
centre provides the Group with the sales and service capacity to grow personal
lines business in the most cost efficient and customer focused manner.
Net claims incurred amounted to EUR263.5m (2008: EUR271.2m). The loss ratio (claims
incurred, net of reinsurance as a percentage of earned premium net of
reinsurance) for 2009 was 83.8% (2008: 79.1%) and was heavily impacted by severe
weather events and higher than normal large claims experience, attributable to
deterioration in a small number of prior year claims. On the other hand,
Ireland continues to experience a reduction in the number of road deaths. FBD's
frequency of motor injury claims has reduced.
Severe weather claims were a major feature of 2009. The cost of the
unprecedented flooding and freeze incidents in November and December, are far in
excess of any previous weather related event in the Irish market. The 2009 cost
to FBD was EUR13.5m, net of reinsurance. FBD's risk management policy determines
the Group's appetite for risk and limits the exposure that FBD is prepared to
accept from any event or series of events. In respect of weather related
events, the objective is to limit the Group's exposure so as to protect
profitability, solvency and shareholders' capital. This objective was achieved
in recent months.
While the Group's reported loss ratio has disimproved from 79.1% in 2008 to
83.8% in 2009, there has been a continuing improvement in the underlying loss
ratio (excluding exceptional large claims experience and claims related to
unusual levels of weather events), which is down from 69.3% in 2008 to 63.9% in
2009 and reduced further in the second half of 2009 to 61.8%. The underlying
loss ratio has improved in each of the property, motor and liability accounts
and has benefited from the Group's timely action on rates and its initiatives to
reduce the cost of claims.
Claims reserves provided a positive runoff again in 2009 despite deterioration
in a small number of prior year large claims, demonstrating the strength of the
Group's reserving position.
Underwriting management expenses in 2009 were in line with the previous year.
The benefit of the office network realignment process, together with other cost
initiatives undertaken by the Group were fully realised in the second half of
the year.
A rise in the cost of reinsurance and the impact of reducing net premium earned
have contributed to an increase in the net expense ratio (other underwriting
expenses as a percentage of earned premium, net of reinsurance) for 2009 to
20.3% (2008: 17.0%). Group head count (full-time equivalents) has reduced from
1,941 at 31 December 2008 to 1,744 at 31 December 2009.
The Group's combined operating ratio for 2009 was 104.1% (2008: 96.1%) resulting
in an underwriting loss of EUR12.9m (2008: profit of EUR13.4m).
Longer term investment return at EUR35.3m was lower than the EUR43.9m in 2008 as the
rate of return attributable to investments has reduced in light of a lower
expectation for future interest rates. The average asset mix throughout the
year was also more conservative.
Non-underwriting
Market conditions for the non-underwriting businesses in Ireland and Spain
continue to be challenging. However, in this environment, non-underwriting
operations generated an operating profit of EUR6.5m (2008: EUR8.5m).
The Group's leisure and property interests include La Cala and Sunset Beach
Resort in Spain and FBD Hotels in Ireland. In the unprecedented difficult
trading conditions these businesses delivered a solid result generating an
operating profit of EUR2.8m (2008: EUR6.0m) and positive cash flow from operations.
The operating profit was lower than the previous year principally because the
hotels located in Ireland were impacted by market oversupply. Sunset Beach
Resort continued to perform strongly and the sale of properties in La Cala
improved in the latter part of the year.
Financial services/other, includes the contributions from general insurance
broking (FBD Brokers), life assurance/pension, broking/investment advice (FBD
Financial Solutions), instalment finance and holding company costs. Operating
profits of EUR3.7m were generated (2008: EUR3.4m). Reduced holding company costs
more than offset the impact of reduced customer appetite for retail investment
products in FBD Financial Solutions.
Pre-tax result
The result before taxes was adversely impacted by a negative fluctuation in
investment return amounting to EUR28.8m (2008: EUR92.3m) and revaluation of
property, plant and equipment of EUR29.0m (2008: Nil). This reflects the impact
of reducing property prices. Restructuring costs of EUR2.3m (2008: EUR7.6m) have
been charged to the consolidated income statement in 2009 in respect of the
finalisation of the office network realignment process and the implementation of
cost restructuring in the property and leisure operations.
After charging finance costs of EUR3.4m (2008: EUR4.5m), the Group recorded a loss
before tax of EUR34.6m (2008: EUR38.6m).
Earnings per share
Operating earnings per 60 cent Ordinary Share based on longer term investment
return amounted to 74.61 cent compared to 171.50 cent the previous year.
Diluted earnings per 60 cent Ordinary Share was (91.05) cent (2008: 100.59
cent).
Dividends
The Board is committed to ensuring that the Group's capital position continues
to be robust and its balance sheet well managed. This reflects the Board's view
that it is in the long-term interest of all shareholders to maintain strong
solvency and liquidity margins. The Group is committed to a progressive
dividend policy and efficient capital management.
The Board is recommending a 2009 final dividend payout of 20 cent per ordinary
share (2008: 10 cent) bringing the full 2009 dividend to 30 cent (2008: 40.25
cent). This equates to a dividend payout ratio (dividend as a percentage of
operating earnings after finance charges) of 46% (2008: 25%). In line with the
Group's target payout ratio, the increase in the payout ratio reflects the
Board's expectation that earnings volatility will reduce now that the level of
activity in the Irish economy as a whole has stabilised. Subject to the
approval of shareholders at the Annual General Meeting to be held on 30 April
2010, this final dividend for 2009 will be paid on 5 May 2010 to the holders of
shares on the register on 12 March in 2010.
The dividend is subject to a withholding tax ("DWT") except for shareholders who
are exempt from DWT and who have furnished a properly completed declaration of
exemption to the Company's Registrar from whom further details may be obtained.
Statement of Financial Position
The Group's statement of financial position remains very strong. Ordinary
shareholders' funds amounted to EUR191.5m (2008: EUR235.4m) and net assets per
ordinary share were EUR5.76 cent (2008: EUR7.09 cent).
FBD Insurance maintains a low risk investment strategy with 86% of its total
investment portfolio invested in government gilts and cash assets. In 2009 the
Group invested a further EUR115.0m in government gilts. Table 1 shows how the
assets of the underwriting business were invested at the beginning and end of
the year.
Table 1 - Underwriting Business Asset Allocation
+---------------------------------------+--------+--------+--------+--------+
| | 31 December | 31 December |
| | 2009 | 2008 |
+---------------------------------------+-----------------+-----------------+
| | EURm | | EURm | |
+---------------------------------------+--------+--------+--------+--------+
| Government gilts | 581 | 56% | 466 | 45% |
+---------------------------------------+--------+--------+--------+--------+
| Deposits & cash | 110 | 11% | 206 | 20% |
+---------------------------------------+--------+--------+--------+--------+
| Trade & other debtors | 101 | 10% | 102 | 10% |
+---------------------------------------+--------+--------+--------+--------+
| Reinsurers' share of technical | 93 | 9% | 59 | 6% |
| provisions | | | | |
+---------------------------------------+--------+--------+--------+--------+
| Investment property | 43 | 4% | 53 | 5% |
+---------------------------------------+--------+--------+--------+--------+
| Secured loans | 37 | 3% | 58 | 6% |
+---------------------------------------+--------+--------+--------+--------+
| Equities & corporate bonds | 36 | 3% | 45 | 4% |
+---------------------------------------+--------+--------+--------+--------+
| Own land & buildings | 22 | 2% | 24 | 2% |
+---------------------------------------+--------+--------+--------+--------+
| Fixtures & fittings | 17 | 2% | 16 | 2% |
+---------------------------------------+--------+--------+--------+--------+
| | | | | |
+---------------------------------------+--------+--------+--------+--------+
| | 1,040 | 100% | 1,029 | 100% |
+---------------------------------------+--------+--------+--------+--------+
In 2009, under mark-to-market or fair value accounting principles, the Group as
a whole booked EUR57.8m (2008: EUR92.3m) of valuation adjustments through the
consolidated income statement and wrote off a further EUR5.3m (2008: EUR34.2)
directly to reserves, a total of EUR63.1m (2008: EUR126.5m). These adjustments are
set out in Table 2 below.
Table 2 - Group Assets/Valuation Adjustments
+---------------------------------------+----------+----------+-------------+
| | Assets | Assets | Valuation |
| | 31 | 31 | adjustments |
| | December | December | 2009 |
| | 2009 | 2008 | |
+---------------------------------------+----------+----------+-------------+
| | EURm | EURm | EURm |
+---------------------------------------+----------+----------+-------------+
| Government gilts | 581.1 | 465.8 | - |
+---------------------------------------+----------+----------+-------------+
| Hotel & golf resort assets | 136.3 | 167.1 | (31.9) |
+---------------------------------------+----------+----------+-------------+
| Deposits & cash | 119.5 | 218.9 | - |
+---------------------------------------+----------+----------+-------------+
| Trade, other debtors, unsecured loans | 106.7 | 103.5 | - |
| and deferred tax | | | |
+---------------------------------------+----------+----------+-------------+
| Reinsurers' share of technical | 93.2 | 59.0 | - |
| provisions | | | |
+---------------------------------------+----------+----------+-------------+
| Inventories | 59.2 | 62.4 | - |
+---------------------------------------+----------+----------+-------------+
| Investment property | 43.3 | 52.5 | (8.5) |
+---------------------------------------+----------+----------+-------------+
| Equities & corporate bonds | 39.5 | 49.1 | 4.3 |
+---------------------------------------+----------+----------+-------------+
| Secured loans | 36.9 | 57.9 | (24.5) |
+---------------------------------------+----------+----------+-------------+
| Own land & buildings | 21.8 | 24.4 | (2.5) |
+---------------------------------------+----------+----------+-------------+
| Fixtures & fittings | 18.3 | 17.2 | - |
+---------------------------------------+----------+----------+-------------+
| | | | |
+---------------------------------------+----------+----------+-------------+
| | 1,255.8 | 1,277.8 | (63.1) |
+---------------------------------------+----------+----------+-------------+
The Group's portfolio of prime property assets held for the long-term were
valued by professional external valuers or at a lower amount if the Directors
deemed it appropriate to take a more prudent view. Investment properties are
incorporated in the balance sheet at a current yield of 7.83% and secured loans
are valued at a level approximating the value of the underlying security. The
cumulative valuation adjustments made in the last two years are summarised in
the following table:
Table 3 - Cumulative valuation adjustments as a percentage of December 2007
values
+------------------------+-------+
| | % |
+------------------------+-------+
| Hotel & golf resort | 29% |
| assets | |
+------------------------+-------+
| Investment property | 47% |
+------------------------+-------+
| Secured loans | 47% |
+------------------------+-------+
UK property values stabilised late in the second half of 2009 and, while Spanish
property values declined during 2009, the rate has slowed. In Ireland, however,
professional valuers have become significantly more prudent since June. We
believe that as a result of the valuation impairments recognised and the
de-risking of our investment book, the potential for further downside from the
Group's investments has been greatly reduced.
All Group investments are accounted for on a mark-to-market or fair value basis,
with the exception of development land at La Cala and government gilts. La Cala
development land is included within inventories at the lower of cost and net
realisable value. The independent external valuation conducted at 31 December
2009 reported a value which exceeded cost by EUR30.8m. Government gilts held to
maturity are included in the balance sheet at amortised cost. If these gilts
were recognised on a mark-to-market basis, a surplus of EUR30.7m would arise.
FBD Group has a strong capital base and balance sheet. FBD Insurance had a
solvency level of 52% of net premium earned at the end of 2009, up from 50% at
the end of 2008. FBD also has a prudent reserving strategy and in the same
period, its reserving ratio (net technical provisions divided by net premium
earned) increased from 220% to 240%. This is supported by a positive run-off of
claims reserves again in 2009, despite the deterioration in a small number of
prior year large claims.
Outlook
Underwriting
While economic uncertainty remains, the rate of Irish economic contraction has
slowed considerably. The Group's underwriting business is, by its nature,
defensive and its spread of business is not overly exposed to any one sector.
With an industry combined operating ratio of over 100% in 2009 and the prospect
of lower investment returns, further industry rate increases are required to
deliver an acceptable return on capital. The Directors expect the Group's focus
on rating discipline, managing claims costs and expense containment to deliver
an improved combined ratio in 2010. We expect that the rate of FBD's volume
decline, which has slowed since early 2009, will continue to slow, if not
reverse.
The severe weather conditions continued into January of 2010 and the related
claims costs in 2010 are currently estimated at EUR12m, net of reinsurance. There
is evidence in the market that the weather related claims in late 2009 and early
2010, which will cost the industry in the region of EUR550m, have already led to
market rate increases and further increases are anticipated. Given FBD's
relatively fixed cost base, the Group will benefit from positive operating
leverage as prices rise.
FBD Insurance will focus on profitable growth, constantly evolving its business
to reflect customers' needs. The Group will continue to implement its plan to
increase penetration of key urban markets, in particular Dublin, and the
commercial insurance market. At the same time, the Group continues to devote
considerable resources to developing its core farming account, a key strategic
priority.
Non-underwriting
The environment for the non-underwriting businesses is expected to remain
difficult in 2010. Oversupply in the market place is the key challenge facing
the property and leisure businesses, particularly in Ireland and recovery will
be dependent on a reduction in market capacity. The Group will continue to
outperform competitors by focusing on initiatives that will enhance revenue
and/or reduce costs, so as to maintain profitable and cash generative businesses
through the recessionary period.
Group
FBD Group has a strong capital base and balance sheet and a prudent reserving
strategy. The Board is confident that FBD will continue to outperform its peers
in delivering superior returns to shareholders. FBD has demonstrated its
capacity to deliver operating profits in difficult market conditions and is well
positioned to deliver long-term profitable growth, particularly in an
environment where premium rates are hardening.
FBD Holdings plc
Consolidated Income Statement
For the Year Ended 31 December 2009
+------------------------------------+----------+-----------+--+-----------+
| | | | | Restated |
| | | 2009 | | 2008 |
+------------------------------------+----------+-----------+--+-----------+
| | | EUR000s | | EUR000s |
+------------------------------------+----------+-----------+--+-----------+
| | | | | |
+------------------------------------+----------+-----------+--+-----------+
| Revenue | | 476,159 | | 521,571 |
+------------------------------------+----------+-----------+--+-----------+
| | | | | |
+------------------------------------+----------+-----------+--+-----------+
| Income | | | | |
+------------------------------------+----------+-----------+--+-----------+
| Gross premium written | | 357,244 | | 385,638 |
+------------------------------------+----------+-----------+--+-----------+
| Reinsurance premiums | | (54,107) | | (57,083) |
+------------------------------------+----------+-----------+--+-----------+
| | | | | |
+------------------------------------+----------+-----------+--+-----------+
| Net premium written | | 303,137 | | 328,555 |
+------------------------------------+----------+-----------+--+-----------+
| Change in provision for unearned | | 11,467 | | 14,520 |
| premiums | | | | |
+------------------------------------+----------+-----------+--+-----------+
| | | | | |
+------------------------------------+----------+-----------+--+-----------+
| Net premium earned | | 314,604 | | 343,075 |
+------------------------------------+----------+-----------+--+-----------+
| Net investment return | | 6,515 | | (48,377) |
+------------------------------------+----------+-----------+--+-----------+
| Non-underwriting income | | 72,774 | | 80,203 |
+------------------------------------+----------+-----------+--+-----------+
| | | | | |
+------------------------------------+----------+-----------+--+-----------+
| Total income | | 393,893 | | 374,901 |
+------------------------------------+----------+-----------+--+-----------+
| | | | | |
+------------------------------------+----------+-----------+--+-----------+
| Expenses | | | | |
+------------------------------------+----------+-----------+--+-----------+
| Net claims and benefits | | (263,492) | | (271,205) |
+------------------------------------+----------+-----------+--+-----------+
| Other underwriting expenses | | (64,020) | | (58,470) |
+------------------------------------+----------+-----------+--+-----------+
| Non-underwriting expenses | | (66,285) | | (71,750) |
+------------------------------------+----------+-----------+--+-----------+
| Revaluation of property, plant and | | (29,048) | | - |
| equipment | | | | |
+------------------------------------+----------+-----------+--+-----------+
| Restructuring costs | | (2,315) | | (7,609) |
+------------------------------------+----------+-----------+--+-----------+
| Finance costs | | (3,377) | | (4,474) |
+------------------------------------+----------+-----------+--+-----------+
| | | | | |
+------------------------------------+----------+-----------+--+-----------+
| Loss before tax | | (34,644) | | (38,607) |
+------------------------------------+----------+-----------+--+-----------+
| | | | | |
+------------------------------------+----------+-----------+--+-----------+
| Income tax credit | | 3,714 | | 5,607 |
+------------------------------------+----------+-----------+--+-----------+
| | | | | |
+------------------------------------+----------+-----------+--+-----------+
| Loss for the year | | (30,930) | | (33,000) |
+------------------------------------+----------+-----------+--+-----------+
| | | | | |
+------------------------------------+----------+-----------+--+-----------+
| Attributable to: | | | | |
+------------------------------------+----------+-----------+--+-----------+
| Equity holders of the parent | | (30,190) | | (33,270) |
+------------------------------------+----------+-----------+--+-----------+
| Minority interest | | (740) | | 270 |
+------------------------------------+----------+-----------+--+-----------+
| | | | | |
+------------------------------------+----------+-----------+--+-----------+
| | | (30,930) | | (33,000) |
+------------------------------------+----------+-----------+--+-----------+
| | | | | |
+------------------------------------+----------+-----------+--+-----------+
| | | | | |
+------------------------------------+----------+-----------+--+-----------+
| | | 2009 | | 2008 |
+------------------------------------+----------+-----------+--+-----------+
| | | Cent | | Cent |
+------------------------------------+----------+-----------+--+-----------+
| | | | | |
+------------------------------------+----------+-----------+--+-----------+
| Basic earnings per 60c ordinary | | (91.59) | | (100.94) |
| share | | | | |
+------------------------------------+----------+-----------+--+-----------+
| | | | | |
+------------------------------------+----------+-----------+--+-----------+
| Diluted earnings per 60c ordinary | | (91.05) | | (100.59) |
| share | | | | |
+------------------------------------+----------+-----------+--+-----------+
Comparative figures for the year ended 31 December 2008 have been restated as
detailed in Note 6. All results derived from continuing operations.
FBD Holdings plc
Consolidated Statement of Comprehensive Income
For the Year Ended 31 December 2009
+-------------------------------------+------+----+-----------+---+-----------+
| | | | | Restated |
| | | 2009 | | 2008 |
+-------------------------------------+-----------+-----------+---+-----------+
| | | EUR000s | | EUR000s |
+-------------------------------------+-----------+-----------+---+-----------+
| | | | | |
+-------------------------------------+-----------+-----------+---+-----------+
| Loss for the year | | (30,930) | | (33,000) |
+-------------------------------------+-----------+-----------+---+-----------+
| | | | | |
+-------------------------------------+-----------+-----------+---+-----------+
| (Loss)/gain on available for sale | | (1,554) | | 199 |
| financial assets | | | | |
+-------------------------------------+-----------+-----------+---+-----------+
| Revaluation of property, plant and | | (5,241) | | (34,166) |
| equipment | | | | |
+-------------------------------------+-----------+-----------+---+-----------+
| Actuarial loss | | (8,556) | | (10,174) |
+-------------------------------------+-----------+-----------+---+-----------+
| Exchange differences on translation of | | 747 | | (1,070) |
| foreign operations | | | | |
+--------------------------------------------+----+-----------+---+-----------+
| | | | | |
+-------------------------------------+-----------+-----------+---+-----------+
| Other comprehensive expense before | | (14,604) | | (45,211) |
| tax | | | | |
+-------------------------------------+-----------+-----------+---+-----------+
| | | | | |
+-------------------------------------+-----------+-----------+---+-----------+
| Tax credit relating to other | | 6,884 | | 5,813 |
| comprehensive income | | | | |
+-------------------------------------+-----------+-----------+---+-----------+
| | | | | |
+-------------------------------------+-----------+-----------+---+-----------+
| Other comprehensive expense after | | (7,720) | | (39,398) |
| tax | | | | |
+-------------------------------------+-----------+-----------+---+-----------+
| | | | | |
+-------------------------------------+-----------+-----------+---+-----------+
| Total comprehensive expense for the | | (38,650) | | (72,398) |
| year | | | | |
+-------------------------------------+-----------+-----------+---+-----------+
| | | | | |
+-------------------------------------+-----------+-----------+---+-----------+
| | | | | |
+-------------------------------------+-----------+-----------+---+-----------+
| Attributable to: | | | | |
+-------------------------------------+-----------+-----------+---+-----------+
| Equity holders of the parent | | (37,664) | | (71,205) |
+-------------------------------------+-----------+-----------+---+-----------+
| Minority interests | | (986) | | (1,193) |
+-------------------------------------+-----------+-----------+---+-----------+
| | | | | |
+-------------------------------------+-----------+-----------+---+-----------+
| | | (38,650) | | (72,398) |
+-------------------------------------+-----------+-----------+---+-----------+
| | | | | |
+-------------------------------------+-----------+-----------+---+-----------+
| | | | | | |
+-------------------------------------+------+----+-----------+---+-----------+
Comparative figures for the year ended 31 December 2008 have been restated as
detailed in Note 6.
FBD Holdings plc
Pro Forma Reconciliation of Consolidated Operating Profit to Loss before Tax
(non-IFRS)
For the Year Ended 31 December 2009
+------------------------------------+----------+-----------+-----+----------+
| | | 2009 | | 2008 |
+------------------------------------+----------+-----------+-----+----------+
| | | EUR000s | | EUR000s |
+------------------------------------+----------+-----------+-----+----------+
| | | | | |
+------------------------------------+----------+-----------+-----+----------+
| | | | | |
+------------------------------------+----------+-----------+-----+----------+
| | | | | |
+------------------------------------+----------+-----------+-----+----------+
| Underwriting | | 22,391 | | 57,330 |
+------------------------------------+----------+-----------+-----+----------+
| | | | | |
+------------------------------------+----------+-----------+-----+----------+
| Non-underwriting | | 6,489 | | 8,453 |
+------------------------------------+----------+-----------+-----+----------+
| | | | | |
+------------------------------------+----------+-----------+-----+----------+
| Operating profit before tax | | 28,880 | | 65,783 |
+------------------------------------+----------+-----------+-----+----------+
| | | | | |
+------------------------------------+----------+-----------+-----+----------+
| | | | | |
+------------------------------------+----------+-----------+-----+----------+
| Investment return - fluctuations | | (28,784) | | (92,307) |
+------------------------------------+----------+-----------+-----+----------+
| | | | | |
+------------------------------------+----------+-----------+-----+----------+
| Revaluation of property, plant and | | (29,048) | | - |
| equipment | | | | |
+------------------------------------+----------+-----------+-----+----------+
| | | | | |
+------------------------------------+----------+-----------+-----+----------+
| Restructuring costs | | (2,315) | | (7,609) |
+------------------------------------+----------+-----------+-----+----------+
| | | | | |
+------------------------------------+----------+-----------+-----+----------+
| Finance costs | | (3,377) | | (4,474) |
+------------------------------------+----------+-----------+-----+----------+
| | | | | |
+------------------------------------+----------+-----------+-----+----------+
| Loss before tax | | (34,644) | | (38,607) |
+------------------------------------+----------+-----------+-----+----------+
| | | | | |
+------------------------------------+----------+-----------+-----+----------+
Refer to Note 6 for the basis of preparation of this pro-forma statement, which
is supplementary to the primary statements required under International
Financial Reporting Standards.
FBD Holdings plc
Consolidated Statement of Financial Position
At 31 December 2009
+------------------------------------------------+----------+-----------+-----+-----------+
| ASSETS | | | | |
+------------------------------------------------+----------+-----------+-----+-----------+
| | | 2009 | | 2008 |
+------------------------------------------------+----------+-----------+-----+-----------+
| | | EUR000s | | EUR000s |
+------------------------------------------------+----------+-----------+-----+-----------+
| | | | | |
+------------------------------------------------+----------+-----------+-----+-----------+
| Property, plant and equipment | | 176,479 | | 208,659 |
+------------------------------------------------+----------+-----------+-----+-----------+
| | | | | |
+------------------------------------------------+----------+-----------+-----+-----------+
| Loans | | 43,863 | | 70,489 |
+------------------------------------------------+----------+-----------+-----+-----------+
| | | | | |
+------------------------------------------------+----------+-----------+-----+-----------+
| Deferred tax asset | | 6,907 | | - |
+------------------------------------------------+----------+-----------+-----+-----------+
| | | | | |
+------------------------------------------------+----------+-----------+-----+-----------+
| Financial Assets | | | | |
+------------------------------------------------+----------+-----------+-----+-----------+
| Investments held to maturity | | 581,096 | | 479,626 |
+------------------------------------------------+----------+-----------+-----+-----------+
| Available for sale investments | | 9,476 | | 11,051 |
+------------------------------------------------+----------+-----------+-----+-----------+
| Investment property | | 43,267 | | 52,538 |
+------------------------------------------------+----------+-----------+-----+-----------+
| Investments held for trading | | 30,000 | | 24,112 |
+------------------------------------------------+----------+-----------+-----+-----------+
| Deposits with banks | | 75,462 | | 183,143 |
+------------------------------------------------+----------+-----------+-----+-----------+
| | | | | |
+------------------------------------------------+----------+-----------+-----+-----------+
| | | 739,301 | | 750,470 |
+------------------------------------------------+----------+-----------+-----+-----------+
| Reinsurance assets | | | | |
+------------------------------------------------+----------+-----------+-----+-----------+
| Provision for unearned premiums | | 25,503 | | 25,450 |
+------------------------------------------------+----------+-----------+-----+-----------+
| Claims outstanding | | 67,686 | | 33,544 |
+------------------------------------------------+----------+-----------+-----+-----------+
| | | | | |
+------------------------------------------------+----------+-----------+-----+-----------+
| | | 93,189 | | 58,994 |
+------------------------------------------------+----------+-----------+-----+-----------+
| | | | | |
+------------------------------------------------+----------+-----------+-----+-----------+
| Inventories | | 59,226 | | 62,383 |
+------------------------------------------------+----------+-----------+-----+-----------+
| | | | | |
+------------------------------------------------+----------+-----------+-----+-----------+
| Current tax assets | | 175 | | 4,820 |
+------------------------------------------------+----------+-----------+-----+-----------+
| | | | | |
+------------------------------------------------+----------+-----------+-----+-----------+
| Deferred acquisition costs | | 19,963 | | 17,733 |
+------------------------------------------------+----------+-----------+-----+-----------+
| | | | | |
+------------------------------------------------+----------+-----------+-----+-----------+
| Other receivables | | 72,681 | | 68,539 |
+------------------------------------------------+----------+-----------+-----+-----------+
| | | | | |
+------------------------------------------------+----------+-----------+-----+-----------+
| Cash and cash equivalents | | 44,036 | | 35,713 |
+------------------------------------------------+----------+-----------+-----+-----------+
| | | | | |
+------------------------------------------------+----------+-----------+-----+-----------+
| Total assets | | 1,255,820 | | 1,277,800 |
+------------------------------------------------+----------+-----------+-----+-----------+
| | | | | |
+------------------------------------------------+----------+-----------+-----+-----------+
FBD Holdings plc
Consolidated Statement of Financial Position
At 31 December 2009
+-----------------------------------------+--------+------------+-+-----------+
| EQUITY AND LIABILITIES | | 2009 | | 2008 |
+-----------------------------------------+--------+------------+-+-----------+
| | | EUR000s | | EUR000s |
+-----------------------------------------+--------+------------+-+-----------+
| | | | | |
+-----------------------------------------+--------+------------+-+-----------+
| Equity | | | | |
+-----------------------------------------+--------+------------+-+-----------+
| Ordinary share capital | | 21,409 | | 21,409 |
+-----------------------------------------+--------+------------+-+-----------+
| Capital reserves | | 14,297 | | 13,599 |
+-----------------------------------------+--------+------------+-+-----------+
| Revaluation reserves | | 742 | | 3,295 |
+-----------------------------------------+--------+------------+-+-----------+
| Translation reserves | | 66 | | (681) |
+-----------------------------------------+--------+------------+-+-----------+
| Retained earnings | | 154,994 | | 197,788 |
+-----------------------------------------+--------+------------+-+-----------+
| | | | | |
+-----------------------------------------+--------+------------+-+-----------+
| Shareholders' funds - equity interests | | 191,508 | | 235,410 |
+-----------------------------------------+--------+------------+-+-----------+
| Preference share capital | | 2,923 | | 2,923 |
+-----------------------------------------+--------+------------+-+-----------+
| | | | | |
+-----------------------------------------+--------+------------+-+-----------+
| Equity attributable to equity holders | | 194,431 | | 238,333 |
| of the parent | | | | |
+-----------------------------------------+--------+------------+-+-----------+
| Minority interests | | 3,030 | | 4,151 |
+-----------------------------------------+--------+------------+-+-----------+
| | | | | |
+-----------------------------------------+--------+------------+-+-----------+
| Total equity | | 197,461 | | 242,484 |
+-----------------------------------------+--------+------------+-+-----------+
| | | | | |
+-----------------------------------------+--------+------------+-+-----------+
| Insurance contract liabilities | | | | |
+-----------------------------------------+--------+------------+-+-----------+
| Provision for unearned premiums | | 176,603 | | 188,017 |
+-----------------------------------------+--------+------------+-+-----------+
| Claims outstanding | | 671,429 | | 626,188 |
+-----------------------------------------+--------+------------+-+-----------+
| | | | | |
+-----------------------------------------+--------+------------+-+-----------+
| | | 848,032 | | 814,205 |
+-----------------------------------------+--------+------------+-+-----------+
| | | | | |
+-----------------------------------------+--------+------------+-+-----------+
| Borrowings | | 120,051 | | 110,968 |
+-----------------------------------------+--------+------------+-+-----------+
| | | | | |
+-----------------------------------------+--------+------------+-+-----------+
| Retirement benefit obligation | | 23,103 | | 16,112 |
+-----------------------------------------+--------+------------+-+-----------+
| | | | | |
+-----------------------------------------+--------+------------+-+-----------+
| Deferred tax liability | | 10,507 | | 15,062 |
+-----------------------------------------+--------+------------+-+-----------+
| | | | | |
+-----------------------------------------+--------+------------+-+-----------+
| Payables | | 56,666 | | 78,969 |
+-----------------------------------------+--------+------------+-+-----------+
| | | | | |
+-----------------------------------------+--------+------------+-+-----------+
| Total liabilities | | 1,058,359 | | 1,035,316 |
+-----------------------------------------+--------+------------+-+-----------+
| | | | | |
+-----------------------------------------+--------+------------+-+-----------+
| | | | | |
+-----------------------------------------+--------+------------+-+-----------+
| Total equity and liabilities | | 1,255,820 | | 1,277,800 |
+-----------------------------------------+--------+------------+-+-----------+
| | | | | |
+-----------------------------------------+--------+------------+-+-----------+
FBD Holdings plc
Consolidated Statement of Cash Flows
For the Year Ended 31 December 2009
+---------------------------------------------+--+--------+------------+--------+-----------+
| | | | | Restated |
| | | 2009 | | 2008 |
+------------------------------------------------+--------+------------+--------+-----------+
| | | EUR000s | | EUR000s |
+------------------------------------------------+--------+------------+--------+-----------+
| Cash flows from operating activities | | | | |
+------------------------------------------------+--------+------------+--------+-----------+
| Loss before tax | | (34,644) | | (38,607) |
+------------------------------------------------+--------+------------+--------+-----------+
| Adjustments for: | | | | |
+------------------------------------------------+--------+------------+--------+-----------+
| (Gain)/loss on investments held for trading | | (4,925) | | 46,819 |
+------------------------------------------------+--------+------------+--------+-----------+
| Loss on investments held to maturity | | 417 | | 276 |
+------------------------------------------------+--------+------------+--------+-----------+
| Provision for loans & advances | | 21,000 | | - |
+------------------------------------------------+--------+------------+--------+-----------+
| Depreciation of property, plant and equipment | | 6,206 | | 5,432 |
+------------------------------------------------+--------+------------+--------+-----------+
| Share-based payment expense | | 698 | | 442 |
+------------------------------------------------+--------+------------+--------+-----------+
| Decrease in fair value of investment property | | 8,479 | | 30,481 |
+------------------------------------------------+--------+------------+--------+-----------+
| Decrease in fair value of property, plant and | | 29,048 | | - |
| equipment | | | | |
+------------------------------------------------+--------+------------+--------+-----------+
| (Decrease) in insurance contract liabilities | | (368) | | (6,223) |
+------------------------------------------------+--------+------------+--------+-----------+
| Loss on disposal of property, plant and | | 25 | | 246 |
| equipment | | | | |
+------------------------------------------------+--------+------------+--------+-----------+
| | | | | |
+------------------------------------------------+--------+------------+--------+-----------+
| Operating cash flows before movement in | | 25,936 | | 38,866 |
| working capital | | | | |
+------------------------------------------------+--------+------------+--------+-----------+
| (Increase) in receivables | | (5,552) | | (1,187) |
+------------------------------------------------+--------+------------+--------+-----------+
| (Decrease) increase in payables | | (24,003) | | 4,667 |
+------------------------------------------------+--------+------------+--------+-----------+
| Decrease in inventory | | 3,157 | | 3,362 |
+------------------------------------------------+--------+------------+--------+-----------+
| | | | | |
+------------------------------------------------+--------+------------+--------+-----------+
| Cash (used by)/generated from operations | | (462) | | 45,708 |
+------------------------------------------------+--------+------------+--------+-----------+
| Income taxes received/(paid) | | 3,779 | | (20,119) |
+------------------------------------------------+--------+------------+--------+-----------+
| | | | | |
+------------------------------------------------+--------+------------+--------+-----------+
| Net cash from operating activities | | 3,317 | | 25,589 |
+------------------------------------------------+--------+------------+--------+-----------+
| | | | | |
+------------------------------------------------+--------+------------+--------+-----------+
| Cash flows from investing activities | | | | |
+------------------------------------------------+--------+------------+--------+-----------+
| Investments held for trading | | (963) | | 113,039 |
+------------------------------------------------+--------+------------+--------+-----------+
| Investments held to maturity | | (101,887) | | - |
+------------------------------------------------+--------+------------+--------+-----------+
| Investments available for sale | | 21 | | (1,310) |
+------------------------------------------------+--------+------------+--------+-----------+
| Sale of property, plant and equipment | | - | | 985 |
+------------------------------------------------+--------+------------+--------+-----------+
| Purchase of property, plant and equipment | | (8,474) | | (6,144) |
+------------------------------------------------+--------+------------+--------+-----------+
| Sale of investment property | | 792 | | - |
+------------------------------------------------+--------+------------+--------+-----------+
| Loans and advances | | 5,626 | | 6,214 |
+------------------------------------------------+--------+------------+--------+-----------+
| Deposits invested with banks | | 107,681 | | (110,109) |
+------------------------------------------------+--------+------------+--------+-----------+
| | | | | |
+------------------------------------------------+--------+------------+--------+-----------+
| Net cash generated from investing activities | | 2,796 | | 2,675 |
+------------------------------------------------+--------+------------+--------+-----------+
| | | | | |
+------------------------------------------------+--------+------------+--------+-----------+
| Cash flows from financing activities | | | | |
+------------------------------------------------+--------+------------+--------+-----------+
| Ordinary dividends paid | | (6,936) | | (27,623) |
+------------------------------------------------+--------+------------+--------+-----------+
| Special dividend on ordinary shares | | - | | (416) |
+------------------------------------------------+--------+------------+--------+-----------+
| Special dividend on 'A' ordinary shares | | - | | (19,622) |
+------------------------------------------------+--------+------------+--------+-----------+
| Buyback of 'A' ordinary shares | | - | | (30,150) |
+------------------------------------------------+--------+------------+--------+-----------+
| Proceeds of re-issue of ordinary shares | | - | | 180 |
+------------------------------------------------+--------+------------+--------+-----------+
| Increase in bank and other loans | | 22,980 | | 50,532 |
+------------------------------------------------+--------+------------+--------+-----------+
| (Decrease) bank and other loans | | (13,897) | | - |
+------------------------------------------------+--------+------------+--------+-----------+
| | | | | |
+------------------------------------------------+--------+------------+--------+-----------+
| Net cash used in financing activities | | 2,147 | | (27,099) |
+------------------------------------------------+--------+------------+--------+-----------+
| | | | | |
+------------------------------------------------+--------+------------+--------+-----------+
| Net increase in cash and cash equivalents | | 8,260 | | 1,165 |
+------------------------------------------------+--------+------------+--------+-----------+
| Cash and cash equivalents at the beginning of | | 35,713 | | 35,618 |
| the year | | | | |
+------------------------------------------------+--------+------------+--------+-----------+
| Effect of foreign exchange rate changes | | 63 | | (1,070) |
+---------------------------------------------+-----------+------------+--------+-----------+
| | | | | |
+---------------------------------------------+-----------+------------+--------+-----------+
| Cash and cash equivalents at the end of the | | 44,036 | | 35,713 |
| year | | | | |
+---------------------------------------------+-----------+------------+--------+-----------+
| | | | | | |
+---------------------------------------------+--+--------+------------+--------+-----------+
Comparative figures for the year ended 31 December 2008 have been restated as
detailed in Note 6.
FBD Holdings plc
Consolidated Statement of Changes in Equity
For Year Ended 31 December 2009
+--------------------------------+----------+----------+-------------+-------------+----------+--------------+------------+----------+----------+
| | Ordinary | Capital | Restated | Translation | Retained | Attributable | Preference | Restated | Total |
| | Share | Reserves | Revaluation | Reserve | Earnings | to ordinary | Share | Minority | Equity |
+--------------------------------+----------+----------+-------------+-------------+----------+--------------+------------+----------+----------+
| | Capital | | and | | | Shareholders | Capital | Interest | |
| | | | Other | | | | | | |
+--------------------------------+----------+----------+-------------+-------------+----------+--------------+------------+----------+----------+
| | | | Reserves | | | | | | |
+--------------------------------+----------+----------+-------------+-------------+----------+--------------+------------+----------+----------+
| | EUR000s | EUR000s | EUR000s | EUR000s | EUR000s | EUR000s | EUR000s | EUR000s | EUR000s |
+--------------------------------+----------+----------+-------------+-------------+----------+--------------+------------+----------+----------+
| 2008 Restated | | | | | | | | | |
+--------------------------------+----------+----------+-------------+-------------+----------+--------------+------------+----------+----------+
| Balance at 1 January 2008 | 21,277 | 12,956 | 29,986 | 389 | 318,981 | 383,589 | 2,923 | 5,689 | 392,201 |
+--------------------------------+----------+----------+-------------+-------------+----------+--------------+------------+----------+----------+
| Loss after taxation | - | - | - | - | (33,270) | (33,270) | - | 270 | (33,000) |
+--------------------------------+----------+----------+-------------+-------------+----------+--------------+------------+----------+----------+
| Other comprehensive income | - | - | (26,691) | (1,070) | (10,174) | (37,935) | - | (1,463) | (39,398) |
+--------------------------------+----------+----------+-------------+-------------+----------+--------------+------------+----------+----------+
| | | | | | | | | | |
+--------------------------------+----------+----------+-------------+-------------+----------+--------------+------------+----------+----------+
| | 21,277 | 12,956 | 3,295 | (681) | 275,537 | 312,384 | 2,923 | 4,496 | 319,803 |
+--------------------------------+----------+----------+-------------+-------------+----------+--------------+------------+----------+----------+
| Dividends paid on ordinary and | - | - | - | - | (27,741) | (27,741) | - | - | (27,741) |
| preference shares | | | | | | | | | |
+--------------------------------+----------+----------+-------------+-------------+----------+--------------+------------+----------+----------+
| Special dividend paid on | - | - | - | - | (416) | (416) | - | - | (416) |
| ordinary shares | | | | | | | | | |
+--------------------------------+----------+----------+-------------+-------------+----------+--------------+------------+----------+----------+
| Special dividends paid on 'A' | - | - | - | - | (19,622) | (19,622) | - | - | (19,622) |
| ordinary shares | | | | | | | | | |
+--------------------------------+----------+----------+-------------+-------------+----------+--------------+------------+----------+----------+
| Issue of 'A' ordinary shares | 333 | - | - | - | | 333 | - | - | 333 |
+--------------------------------+----------+----------+-------------+-------------+----------+--------------+------------+----------+----------+
| Buyback of 'A' ordinary shares | - | - | - | - | (30,150) | (30,150) | - | - | (30,150) |
+--------------------------------+----------+----------+-------------+-------------+----------+--------------+------------+----------+----------+
| Cancellation of 'A' ordinary | (201) | 201 | - | - | - | - | - | - | - |
| shares | | | | | | | | | |
+--------------------------------+----------+----------+-------------+-------------+----------+--------------+------------+----------+----------+
| Reissue of ordinary shares | - | - | - | - | 180 | 180 | - | - | 180 |
+--------------------------------+----------+----------+-------------+-------------+----------+--------------+------------+----------+----------+
| Dividend paid to minority | - | - | - | - | - | - | - | (345) | (345) |
| interests | | | | | | | | | |
+--------------------------------+----------+----------+-------------+-------------+----------+--------------+------------+----------+----------+
| Recognition of share based | - | 442 | - | - | - | 442 | - | - | 442 |
| payments | | | | | | | | | |
+--------------------------------+----------+----------+-------------+-------------+----------+--------------+------------+----------+----------+
| | | | | | | | | | |
+--------------------------------+----------+----------+-------------+-------------+----------+--------------+------------+----------+----------+
| Balance at 31 December 2008 | 21,409 | 13,599 | 3,295 | (681) | 197,788 | 235,410 | 2,923 | 4,151 | 242,484 |
+--------------------------------+----------+----------+-------------+-------------+----------+--------------+------------+----------+----------+
| | | | | | | | | | |
+--------------------------------+----------+----------+-------------+-------------+----------+--------------+------------+----------+----------+
| | | | | | | | | | |
+--------------------------------+----------+----------+-------------+-------------+----------+--------------+------------+----------+----------+
| 2009 | | | | | | | | | |
+--------------------------------+----------+----------+-------------+-------------+----------+--------------+------------+----------+----------+
| Loss after taxation | - | - | - | - | (30,190) | (30,190) | - | (740) | (30,930) |
+--------------------------------+----------+----------+-------------+-------------+----------+--------------+------------+----------+----------+
| Other comprehensive income | - | - | (2,553) | 747 | (5,668) | (7,474) | - | (246) | (7,720) |
+--------------------------------+----------+----------+-------------+-------------+----------+--------------+------------+----------+----------+
| | | | | | | | | | |
+--------------------------------+----------+----------+-------------+-------------+----------+--------------+------------+----------+----------+
| | 21,409 | 13,599 | 742 | 66 | 161,930 | 197,746 | 2,923 | 3,165 | 203,834 |
+--------------------------------+----------+----------+-------------+-------------+----------+--------------+------------+----------+----------+
| Dividends paid on ordinary and | - | - | - | - | (6,936) | (6,936) | - | - | (6,936) |
| preference shares | | | | | | | | | |
+--------------------------------+----------+----------+-------------+-------------+----------+--------------+------------+----------+----------+
| Dividend paid to minority | - | - | - | - | - | - | - | (135) | (135) |
| interests | | | | | | | | | |
+--------------------------------+----------+----------+-------------+-------------+----------+--------------+------------+----------+----------+
| Recognition of share based | - | 698 | - | - | - | 698 | - | - | 698 |
| payments | | | | | | | | | |
+--------------------------------+----------+----------+-------------+-------------+----------+--------------+------------+----------+----------+
| | | | | | | | | | |
+--------------------------------+----------+----------+-------------+-------------+----------+--------------+------------+----------+----------+
| | | | | | | | | | |
+--------------------------------+----------+----------+-------------+-------------+----------+--------------+------------+----------+----------+
| Balance at 31 December 2009 | 21,409 | 14,297 | 742 | 66 | 154,994 | 191,508 | 2,923 | 3,030 | 197,461 |
+--------------------------------+----------+----------+-------------+-------------+----------+--------------+------------+----------+----------+
| | | | | | | | | | |
+--------------------------------+----------+----------+-------------+-------------+----------+--------------+------------+----------+----------+
| Comparative figures for the year ended 31 December 2008 have been restated as detailed in Note 6. |
+--------------------------------+----------+----------+-------------+-------------+----------+--------------+------------+----------+----------+
FBD HOLDINGS PLC
SUPPLEMENTARY INFORMATION
For year ended 31 December 2009
Note 1 - Operating Profit by Activity
+--------------------------------------------+---------+----+---------+
| | 2009 | | 2008 |
+--------------------------------------------+---------+----+---------+
| | EUR000s | | EUR000s |
+--------------------------------------------+---------+----+---------+
| | | | |
+--------------------------------------------+---------+----+---------+
| Underwriting | 22,391 | | 57,330 |
+--------------------------------------------+---------+----+---------+
| | | | |
+--------------------------------------------+---------+----+---------+
| Non-underwriting | 6,489 | | 8,453 |
+--------------------------------------------+---------+----+---------+
| | | | |
+--------------------------------------------+---------+----+---------+
| | 28,880 | | 65,783 |
+--------------------------------------------+---------+----+---------+
Non underwriting profit is analysed as follows:
+--------------------------------------------+---------+----+---------+
| | 2009 | | 2008 |
+--------------------------------------------+---------+----+---------+
| | EUR000s | | EUR000s |
+--------------------------------------------+---------+----+---------+
| | | | |
+--------------------------------------------+---------+----+---------+
| Leisure and leisure property development | 2,786 | | 5,991 |
+--------------------------------------------+---------+----+---------+
| | | | |
+--------------------------------------------+---------+----+---------+
| Financial Services/Other | 3,703 | | 3,329 |
+--------------------------------------------+---------+----+---------+
| | | | |
+--------------------------------------------+---------+----+---------+
| Capital fund | - | | (867) |
+--------------------------------------------+---------+----+---------+
| | | | |
+--------------------------------------------+---------+----+---------+
| | 6,489 | | 8,453 |
+--------------------------------------------+---------+----+---------+
+---------------------------------------+----+----------+----+----------+
| | | 2009 | | 2008 |
+---------------------------------------+----+----------+----+----------+
| Other underwriting expenses | | EUR000s | | EUR000s |
+---------------------------------------+----+----------+----+----------+
| | | | | |
+---------------------------------------+----+----------+----+----------+
| Management expenses | | 75,860 | | 75,516 |
+---------------------------------------+----+----------+----+----------+
| Reinsurance commissions receivable | | (13,943) | | (18,756) |
+---------------------------------------+----+----------+----+----------+
| Broker commission payable | | 2,103 | | 1,710 |
+---------------------------------------+----+----------+----+----------+
| | | | | |
| | | 64,020 | | 58,470 |
+---------------------------------------+----+----------+----+----------+
Note 2 - Underwriting Operating Profit
+--------------------------------------------+-----------+----+-----------+
| | 2009 | | 2008 |
+--------------------------------------------+-----------+----+-----------+
| | EUR000s | | EUR000s |
+--------------------------------------------+-----------+----+-----------+
| | | | |
+--------------------------------------------+-----------+----+-----------+
| Gross written premiums | 357,244 | | 385,638 |
+--------------------------------------------+-----------+----+-----------+
| | | | |
+--------------------------------------------+-----------+----+-----------+
| Net premium earned | 314,604 | | 343,075 |
+--------------------------------------------+-----------+----+-----------+
| Adjusted net claims incurred | (263,492) | | (271,205) |
+--------------------------------------------+-----------+----+-----------+
| Net operating expenses | (64,020) | | (58,470) |
+--------------------------------------------+-----------+----+-----------+
| | | | |
+--------------------------------------------+-----------+----+-----------+
| Underwriting (loss)/profit | (12,908) | | 13,400 |
+--------------------------------------------+-----------+----+-----------+
| | | | |
+--------------------------------------------+-----------+----+-----------+
| Longer term investment return | 35,299 | | 43,930 |
+--------------------------------------------+-----------+----+-----------+
| | | | |
+--------------------------------------------+-----------+----+-----------+
| Underwriting operating profit | 22,391 | | 57,330 |
+--------------------------------------------+-----------+----+-----------+
FBD HOLDINGS PLC
SUPPLEMENTARY INFORMATION
For year ended 31 December 2009
Note 3 - Dividends
+-+---------------------------------------------------------+-------+-----------+
| | 2009 | 2008 |
+-----------------------------------------------------------+-------+-----------+
| | Paid during year: | EUR000s | EUR000s |
+-+---------------------------------------------------------+-------+-----------+
| | | | |
+-+---------------------------------------------------------+-------+-----------+
| | Dividend of 4.8c (2008: 4.8c) per share on 8% | 169 | 169 |
| | Non-Cumulative Preference Shares of 60c each | | |
+-+---------------------------------------------------------+-------+-----------+
| | Dividend of 8.4c (2008: 8.4c) per share on 14% | 113 | 113 |
| | Non-Cumulative Preference Shares of 60c each | | |
+-+---------------------------------------------------------+-------+-----------+
| | 2008 Final dividend of 10.0c (2007: 52.0c) per share on | 3,327 | 17,277 |
| | Ordinary Shares of 60c each | | |
+-+---------------------------------------------------------+-------+-----------+
| | 2009 Interim dividend of 10.0c (2008: 30.25c) per share | 3,327 | 10,064 |
| | on Ordinary Shares of 60c each | | |
+-+---------------------------------------------------------+-------+-----------+
| | Special dividend of 1.25c on Ordinary Shares of 60c | - | 416 |
| | each | | |
+-+---------------------------------------------------------+-------+-----------+
| | Special dividend of 149c on 'A' Ordinary Shares of 1c | - | 19,622 |
| | each | | |
+-+---------------------------------------------------------+-------+-----------+
| | | | |
+-+---------------------------------------------------------+-------+-----------+
| | | 6,936 | 47,661 |
+-+---------------------------------------------------------+-------+-----------+
| | Proposed*: | | |
+-+---------------------------------------------------------+-------+-----------+
| | | | |
+-+---------------------------------------------------------+-------+-----------+
| | Dividend of 4.8c (2008: 4.8c) per share on 8% | 169 | 169 |
| | Non-Cumulative Preference Shares of 60c each | | |
+-+---------------------------------------------------------+-------+-----------+
| | Final dividend of 20c (2008: 10.0c) per share on | 6,654 | 3,327 |
| | Ordinary Shares of 60c each | | |
+-+---------------------------------------------------------+-------+-----------+
| | | | |
+-+---------------------------------------------------------+-------+-----------+
| | | 6,823 | 3,496 |
+-+---------------------------------------------------------+-------+-----------+
| | * Subject to approval by Shareholders at Annual General Meeting |
+-+-----------------------------------------------------------------------------+
| | | | |
+-+---------------------------------------------------------+-------+-----------+
Note 4 - Earnings per 60c Ordinary Share
The calculation of the basic and diluted earnings per share attributable to the
ordinary shareholders is based on the following data:
+--+------------------------------------------------------+------------+------------+
| | | 2009 | 2008 |
+--+------------------------------------------------------+------------+------------+
| Earnings | EUR000s | EUR000s |
+---------------------------------------------------------+------------+------------+
| | | |
+---------------------------------------------------------+------------+------------+
| Loss for the year | (30,930) | (33,000) |
+---------------------------------------------------------+------------+------------+
| Minority interest | 740 | (270) |
+---------------------------------------------------------+------------+------------+
| Preference dividend | (282) | (282) |
+---------------------------------------------------------+------------+------------+
| | | |
+---------------------------------------------------------+------------+------------+
| Earnings for the purpose of basic and diluted earnings | (30,472) | (33,552) |
| per share | | |
+---------------------------------------------------------+------------+------------+
| | | |
+---------------------------------------------------------+------------+------------+
| | | |
+---------------------------------------------------------+------------+------------+
| | | |
+---------------------------------------------------------+------------+------------+
| Number of shares | 2009 | 2008 |
+---------------------------------------------------------+------------+------------+
| | | |
+---------------------------------------------------------+------------+------------+
| Weighted average number of ordinary shares for the | | |
| purpose of | | |
+---------------------------------------------------------+------------+------------+
| basic earnings per share and operating earnings per | 33,269,000 | 33,241,000 |
| share | | |
+---------------------------------------------------------+------------+------------+
| Effect of dilutive potential of share options | 198,000 | 114,000 |
| outstanding | | |
+---------------------------------------------------------+------------+------------+
| | | |
+---------------------------------------------------------+------------+------------+
| Weighted average number of ordinary shares for the | | |
| purpose of | | |
+---------------------------------------------------------+------------+------------+
| diluted earnings per share | 33,467,000 | 33,355,000 |
+---------------------------------------------------------+------------+------------+
| | | | |
+--+------------------------------------------------------+------------+------------+
| | | | |
+--+------------------------------------------------------+------------+------------+
The calculation of the operating earnings per share, which is supplementary to
the measurements under International Financial Reporting Standards, is based on
the following data:
+---------------------------------------------------------+--------+----------+
| | 2009 | 2008 |
+---------------------------------------------------------+--------+----------+
| | EUR000s | EUR000s |
+---------------------------------------------------------+--------+----------+
| | | |
+---------------------------------------------------------+--------+----------+
| Operating profit after taxation* | 25,299 | 57,560 |
+---------------------------------------------------------+--------+----------+
| Minority interest | (193) | (270) |
+---------------------------------------------------------+--------+----------+
| Preference dividend | (282) | (282) |
+---------------------------------------------------------+--------+----------+
| | | |
+---------------------------------------------------------+--------+----------+
| | 24,824 | 57,008 |
+---------------------------------------------------------+--------+----------+
| | | |
+---------------------------------------------------------+--------+----------+
| | Cent | Cent |
+---------------------------------------------------------+--------+----------+
| | | |
+---------------------------------------------------------+--------+----------+
| Operating earnings per share | 74.61 | 171.50 |
+---------------------------------------------------------+--------+----------+
*2009 effective tax rate of 12.4% (2008: 12.5%).
FBD HOLDINGS PLC
SUPPLEMENTARY INFORMATION
For year ended 31 December 2009
Note 5 - Ordinary Share Capital
+------------------------------------------+-------------+---------+---------+
| | Number | 2009 | 2008 |
+------------------------------------------+-------------+---------+---------+
| | (2009 | EUR000s | EUR000s |
| | only) | | |
+------------------------------------------+-------------+---------+---------+
| (i) Ordinary Shares of 60 cent each | | | |
+------------------------------------------+-------------+---------+---------+
| Authorised: | | | |
+------------------------------------------+-------------+---------+---------+
| At the beginning and the end of the year | 51,326,000 | 30,796 | 30,796 |
+------------------------------------------+-------------+---------+---------+
| | | | |
+------------------------------------------+-------------+---------+---------+
| Issued and fully paid: | | | |
+------------------------------------------+-------------+---------+---------+
| At the beginning and the end of the year | 35,461,206 | 21,277 | 21,277 |
+------------------------------------------+-------------+---------+---------+
| | | | |
+------------------------------------------+-------------+---------+---------+
| (ii) 'A' Ordinary shares of 1 cent | | | |
| each | | | |
+------------------------------------------+-------------+---------+---------+
| Authorised: | | | |
+------------------------------------------+-------------+---------+---------+
| At the beginning and the end of the year | 120,000,000 | 1,200 | 1,200 |
+------------------------------------------+-------------+---------+---------+
| | | | |
+------------------------------------------+-------------+---------+---------+
| Issued and fully paid: | | | |
+------------------------------------------+-------------+---------+---------+
| At the beginning of the year | 13,169,428 | 132 | - |
+------------------------------------------+-------------+---------+---------+
| Issued during the year | - | - | 333 |
+------------------------------------------+-------------+---------+---------+
| Cancellation of shares | - | - | (201) |
+------------------------------------------+-------------+---------+---------+
| | | | |
+------------------------------------------+-------------+---------+---------+
| At the end of the year | 13,169,428 | 132 | 132 |
+------------------------------------------+-------------+---------+---------+
| | | | |
+------------------------------------------+-------------+---------+---------+
| | | 21,409 | 21,409 |
+------------------------------------------+-------------+---------+---------+
The 'A' Ordinary shares of EUR0.01 each are non-voting. The rights attaching to
these shares are clearly set out in the Articles of Association of the Company.
They are non-transferable except only to the Company. Other than a right to a
return of paid up capital of EUR0.01 per 'A' Ordinary Share in the event of a
winding up, the 'A' Ordinary Shares have no right to participate in the capital
or the profits of the Company.
The holders of the two classes of non-cumulative preference shares rank ahead of
the two classes of ordinary shares in the event of a winding up. Before any
dividend can be declared on the Ordinary Shares of EUR0.60 each, the dividend on
the non-cumulative preference shares must firstly be declared or paid.
The number of ordinary Shares of 60 cent each held as treasury shares at the
beginning and end of the year (and the maximum number held during the year) was
2,191,730. This represented 6.18% of the shares of this class in issue and had
a nominal value of EUR1.315m. There were no movements during the year in the
Company's holding of treasury shares.
All issued shares have been fully paid.
FBD HOLDINGS PLC
SUPPLEMENTARY INFORMATION
For year ended 31 December 2009
Note 6 - Prior Year Restatement
New layout of Consolidated Income Statement and additional Pro-forma Statement
The Group continuously reviews its external financial reporting with a view to
improving the quality of the information it provides. In the current year, the
layout of the Consolidated Income Statement has been amended and an additional
statement has been added to the financial statements. The additional statement,
produced on page 10, Pro-forma Reconciliation of Consolidated Operating Profit
to Loss before Tax is supplementary to the primary statements required under
International Financial Reporting Standards. It is designed to provide
supplementary information to users of the financial statements including
operating profit, a key performance measure monitored by the Board, which was
disclosed on the face of the consolidated income statement up to and including
2008.
Operating profit is reported on the basis of a longer term investment return.
The nature of the Group's underwriting operations means that, for management's
decision making and internal performance management, short-term realised and
unrealised investment gains and losses are treated as non-operating items. The
Group focuses instead on an operating profit measure incorporating an expected
return on investment. The fluctuation between longer term investment return and
the actual investment return, which includes realised and unrealised gains and
losses and profits or losses arising from substantial non-recurring
transactions, are charged or credited after operating profit is arrived at. As
a result, operating profit is not subject to distortions for fluctuation in
investment returns.
These restatements have no impact on profit before taxation, earnings per share
or Shareholders' funds previously reported for the financial year ended 31
December 2008.
Note 7- Transactions with Related Parties
Included in the financial statements is an unsecured loan of EUR60,000,000
(2008: EUR50,000,000) from Farmer Business Developments plc to FBD Property and
Leisure Limited, a 100% owned subsidiary of FBD Holdings plc. This loan is
guaranteed by FBD Holdings plc. The term of the loan is 3 years and it is due
to be repaid in full in August 2011. Interest is charged on this balance at
market rate which is defined under the terms of the loan agreement as the 3
month Euribor rate plus 2.25%.
Included in the financial statements at the year end is EUR331,601 (2008:
EUR484,170) due from Farmer Business Developments plc. This balance is made up of
recharges for services provided and recoverable costs. Interest is charged on
this balance at the market rate. The amount due is payable on demand. No
guarantees have been given or received.
Note 8 - Subsequent Events
There have been no subsequent events which would have a material impact on these
accounts.
Note 9 - General Information and Accounting Policies
The financial information set out in this document does not constitute full
statutory financial statements for the years ended 31 December 2009 or 2008 but
is derived from same. The Group financial statements have been prepared in
accordance with International Financial Reporting Standards (IFRSs), applicable
Irish law and Listing Rules of the Irish and London Stock Exchanges. The Group
financial statements have also been prepared in accordance with IFRSs adopted by
the European Union and therefore comply with Article 4 of the EU IAS Regulation.
The 2009 and 2008 financial statements have been audited and received
unqualified audit reports. The 2009 financial statements were approved by the
Board of Directors on 2 March 2010.
The consolidated financial statements are prepared under the historical cost
convention as modified by
(i) the revaluation of property held for own use,
hotel and golf resort assets, investments held for trading at fair value,
available for sale investments and investment property and (ii) investments held
to maturity, which are measured at amortised cost.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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