Interim Management Statement (2909C)
April 30 2012 - 2:00AM
UK Regulatory
TIDMFBH
RNS Number : 2909C
FBD Holdings PLC
30 April 2012
FBD Holdings plc
Interim Management Statement
30 April 2012
FBD Holdings plc ("FBD" or the "Group") is issuing the following
interim management statement covering the period from 1 January
2012 to 31 March 2012, 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
We believe that the Irish insurance market contracted further
during the first quarter of 2012, in line with economic activity.
The market continues to be very competitive as evidenced by the
level of advertising spend and the pricing of business insurance
risks. Against, this background, FBD continues to demonstrate
discipline by only increasing volume where returns are
adequate.
Despite the difficult economic environment, the Group achieved
premium levels in line with the previous year. Policy volume grew,
driven primarily by the Group's development of its multi-channel
distribution strategy. This was offset by a reduction in the
average revenue per policy.
The Group made further progress in managing claims costs,
particularly in those areas that are within its control including
risk selection, claims management initiatives and underwriting
improvements. Factors over which FBD has less influence, such as
the benign weather experienced in the first quarter and reduction
in miles driven by Irish motorists, also contributed positively and
helped deliver an improved loss ratio, relative to the comparative
period in 2011. Road fatalities in the first quarter of 2012
reduced by 21% on the first quarter of the previous year. There was
an improvement in both the frequency and average cost of property
related claims. However, the frequency of large claims reverted
towards the norm from a particularly low level in the first quarter
of last year and was in line with expectation.
Underwriting expenses and longer-term investment return are both
in line with expectation.
Operating profit in FBD's underwriting operations was ahead of
the prior year and marginally ahead of expectation.
Financial services
The Group's financial services businesses continued to perform
in line with expectation.
Joint venture
The Group's share of the trading result of the property and
leisure joint venture was in line with expectation.
Balance Sheet
The positive trading performance in the quarter further
strengthened the Group's strong capital base. Fixed interest
securities and bank deposits represent 91% of underwriting
investment assets at 31 March. In the current uncertain investment
market, this short-term conservative investment position continues
to be appropriate.
Outlook
Irish domestic demand is likely to reduce further, albeit at a
diminishing rate, and industry premium income can be expected to
reflect this trend in the broader economy. However, our continued
focus on a buoyant agri sector, the opportunities provided by
NoNonsense.ie and the expansion of FBD's broker channel will
together provide FBD with the potential to outperform the market
again in 2012.
Unless exceptional events arise during the remainder of 2012,
the Group is re-affirming its previous guidance - full-year 2012
operating earnings per share of between 145 and 155 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 Heron +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, which was established in the 1960s,
has developed complementary financial services businesses.
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 Premium Premium (Equity)
Trading Venue Irish Stock Exchange London Stock Exchange
Market Main Securities Market Main Market
ISIN IE0003290289 IE0003290289
Ticker FBD.I 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
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
END
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