Interim Management Statement (4707W)
November 19 2010 - 3:00AM
UK Regulatory
TIDMFBH
RNS Number : 4707W
FBD Holdings PLC
19 November 2010
FBD Holdings PLC
Interim Management Statement
FBD Holdings plc ('FBD' or the 'Group') issues the following
Interim Management Statement covering the period from 1 July 2010
to date, in accordance with the reporting requirements of the EU
Transparency Directive.
Business Overview
In a difficult market environment, FBD has maintained its solid
trading performance and delivered strong operating profits to date
in the second half of 2010. It is encouraging that the Group has
traded ahead of the prior year and modestly ahead of market
expectations, primarily as a result of improved underwriting
performance in recent months.
Underwriting
Premium rates have continued to harden in the Irish insurance
market, particularly for home and business insurance. Policy
volumes in the second half of 2010 to date are level with the
previous year, reversing the trend of contraction in previous
periods. In line with economic activity in Ireland, insurable risk
and values have continued to reduce. Year to date, FBD's gross
written premium is marginally up on last year, while sectoral
indicators suggest a further minor reduction in industry premium
income.
Despite understandable consumer sensitivity to higher premiums,
rate increases have been necessary to provide the industry with an
adequate return on capital, particularly in light of the
unprecedented severe weather claims as a result of the flooding and
freezes last winter.
In response to changing consumer behaviour, FBD's multi-channel
distribution strategy has continued to develop - in particular the
success of the local office network in developing farming business
and the growth of No Nonsense. Greater penetration of key urban
areas, in particular Dublin, has also been achieved.
The Group is encouraged by the introduction of a nationwide
network of speed cameras this week. Successful underwriting and
claims management initiatives have resulted in improved non
weather-related property claims frequency and contributed to an
improvement in the motor vehicle claims ratio. As a result, and
combined with the benefit of rate increases, the Group's loss ratio
in the second half of 2010 to date is modestly ahead of previous
guidance.
The Group continues to focus on efficiency and productivity
improvements to maintain FBD's competitive cost structure.
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 2010 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 and sales of units in La
Cala continue to be ahead of expectations. New marketing and sales
initiatives and operational cost efficiencies continue to be
identified and implemented.
FBD's financial services businesses delivered further solid
performances in difficult market conditions and 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. Both the solvency ratio and
the reserving position have further strengthened year to date. 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 2010 and the results
incorporated into the 2010 Half Yearly Report. A similar valuation
process will be undertaken at 31 December 2010. The Board believes
that as a result of the impairment charges recognised to date and
the de-risking of the investment book, the potential for further
downside has been greatly reduced and relates predominantly to
Irish property and secured loans.
Outlook
Unless exceptional claims events arise during the remainder of
the year, the Board is confident that, as a result of the
improvement in underwriting performance, the Group will deliver
full year 2010 operating earnings per share of 105 to 110 cent per
ordinary share.
FBD Insurance will focus on profitable growth, maintaining
underwriting discipline and constantly evolving its business to
reflect customers' needs. In our insurance business we will
continue to implement our programme to increase penetration of key
urban markets, in particular Dublin. Further opportunities to
maintain cost advantage will be identified and implemented.
The Group expects to deliver operating profits in both its
underwriting and non-underwriting businesses in 2010 and is
confident that it is well positioned to deliver profitable growth
and superior returns to shareholders in the future.
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 +353 1 409 3208
Cathal O'Caoimh, Group Finance Director
Murray Consultants
Joe Murray +353 1 498 0300
FBD Holdings plc FBD House, Bluebell, Dublin 12
Registered in Dublin, Ireland Registered Number 135882
This information is provided by RNS
The company news service from the London Stock Exchange
END
IMSLLFVALVLTLII
Fbd (LSE:FBH)
Historical Stock Chart
From Jun 2024 to Jul 2024
Fbd (LSE:FBH)
Historical Stock Chart
From Jul 2023 to Jul 2024