Interim Management Statement (7210F)
May 03 2011 - 2:00AM
UK Regulatory
TIDMFBH
RNS Number : 7210F
FBD Holdings PLC
29 April 2011
FBD Holdings plc
Interim Management Statement
29 April 2011
FBD Holdings plc ("FBD" or the "Group") is issuing the following
interim management statement covering the period from 1 January
2011 to 31 March 2011, which will be read by the Chairman at the
Annual General Meeting of the Company being held in Dublin, Ireland
at 12 noon today.
Underwriting
In the first quarter of 2011 the benefits of hardening rates in
the Irish insurance market were offset by the ongoing reduction in
insurable risk and values, in line with economic activity in
Ireland. Premium rates for home insurance continued to harden,
while motor insurance premiums were flat. The market for large
business risks became more competitive and FBD chose not to compete
for business where premiums were at uneconomic levels.
In the first three months of 2011, FBD's policy volume was flat
- the first quarter without a fall in policy volumes since quarter
two of 2008. However, gross premium written was down marginally as
the impact of rate increases was offset by reductions in policy
cover and values and a change in product mix.
FBD continued to successfully develop its multi-channel
distribution strategy in response to changing customer behaviour.
FBD.ie and NoNonsense.ie continue to attract targeted customers,
particularly from urban centres. The initiative to develop broker
business is well underway and the local office network has made
further progress in developing farming and business insurance.
The frequency of property and motor claims reduced further in
the first quarter of 2011 and large claims experience was positive.
Company initiatives to reduce the cost of claims are ongoing.
During the first quarter of 2011, following a series of positive
engagements with staff representative bodies, FBD reached agreement
with staff on a series of changes to the terms and conditions of
employment and working practices. The objectives of this agreement
are to secure and enhance the Group's competitive cost advantage
and to enable profitable growth.
Operating profit in FBD's underwriting operations was ahead of
the prior year and in line with expectations.
Non-underwriting
The property and leisure markets in Ireland and Spain remain
challenging. However the operating performance of the Group's
property and leisure businesses in the first quarter was ahead of
both the prior year and expectations. The Irish hotel market
recorded increases in average room rates charged in the quarter
relative to the prior year. This, together with marketing and cost
initiatives implemented by management, contributed to an improved
performance in the Group's Irish hotels. Sales of units in La Cala
again exceeded expectations in the quarter. Sunset Beach Club
continues to perform strongly.
The Group's financial services businesses also continued to
perform well. FBD Financial Solutions delivered another solid
quarter's profits, ahead of the prior year in a weak market for
retail investment and life assurance products. Profits at FBD
Brokers were also ahead of the prior year.
Balance Sheet
The Group has maintained a strong capital base and balance sheet
and continues its strategy of prudent reserving. The Board
reiterates its belief that the potential for further writedowns of
the Group's assets is limited.
Outlook
Irish domestic demand will continue to decline further in 2011,
albeit at a diminishing rate. On the other hand, rate increases by
market participants will have a positive impact on market premiums.
Market size in 2011 will depend on whether the benefit of rate
increases will exceed the contraction in volume and cover. As a
result, the opportunity for FBD premium income growth in 2011 will
be limited. However, the Directors expect that underwriting
discipline and cost containment will deliver improved underwriting
profitability in 2011.
Building on the progress recorded in the first quarter, the
Board is confident of an improved contribution from the Group's
non-underwriting businesses for the full year.
Unless exceptional claims events arise during 2011, the Board
reiterates its previous guidance that the Group will deliver full
year 2011 operating earnings per share of 130 cent to 140 cent.
For Reference
FBD Holdings plc Telephone
Andrew Langford, Group Chief
Executive +353 1 409 3208
Cathal O'Caoimh, Group Finance
Director
Peter Jackson, Head of Investor
Relations
Murray Consultants
Joe Murray +353 1 498 0300
About FBD Holdings plc ("FBD")
FBD is one of Ireland's largest property and casualty insurers
looking after the insurance needs of farmers, private individuals
and business owners. The Group has developed complementary
financial services businesses and also has hotel and leisure
property interests which include four hotels in Ireland and two
resorts in southern Spain. The Group was established in the
1960s.
The following details relate to FBD's ordinary shares of EUR0.60
each which are publicly traded:
Listing Irish Stock Exchange UK Listing Authority
Listing Category Dual Premium (Equity)
Trading Venue Irish Stock Exchange London Stock Exchange
Market Main Securities Main Market
Market
ISIN IE0003290289 IE0003290289
Ticker EG7.IR FBH.L
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.
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
IMSLIFERSDIAFIL
Fbd (LSE:FBH)
Historical Stock Chart
From Jun 2024 to Jul 2024
Fbd (LSE:FBH)
Historical Stock Chart
From Jul 2023 to Jul 2024