FBD Holdings PLC Interim Management Statement (6935F)
April 29 2014 - 2:00AM
UK Regulatory
TIDMFBH
RNS Number : 6935F
FBD Holdings PLC
29 April 2014
FBD Holdings plc
Interim Management Statement
29 April 2014
FBD Holdings plc ("FBD" or the "Group") is issuing the following
Interim Management Statement covering the first quarter of 2014 and
the period up to the date of this statement in advance of its
Annual General Meeting, which is being held in Dublin, Ireland, at
12 noon today.
Underwriting
While the Irish insurance market has begun to benefit from the
recent growth in economic activity, it continued to be a very
competitive market in the first quarter of 2014. Market rates have
hardened for both car insurance and business insurance, while home
insurance rates remain weak despite the severe weather experienced
in the first quarter.
FBD's gross premium written to the date of this statement is
ahead of the previous year by approximately 3%. Both policy volume
and average premiums have increased compared to the same period
last year. The increase in policy volume is primarily from growth
in car insurance and in business insurance. Growth has been
achieved in online sales through both FBD and No Nonsense, through
FBD's sales office network and through brokers. FBD's recently
launched car insurance product for the broker market, sold under
the Clan Insurance brand, has delivered as expected. The Group
continues to focus considerable resources on growing its business
within the farming sector, further enhancing its market leading
position. FBD continues to demonstrate underwriting discipline by
only increasing volume where returns are adequate. Overall, the
Group expects that its share of the insurance market is likely to
have increased further year to date.
The growth in economic activity will have a very positive affect
on FBD in the medium term, particularly given the Group's track
record of outperforming the market. As previously indicated in the
Group's preliminary announcement issued on 3 March 2014, increased
economic activity leads to higher claims frequency and there is
invariably a time lag before this is fully reflected in market
premiums, particularly if activity grows faster than anticipated by
the insurance market. This will have a short term impact on
profitability in 2014 and the early part of 2015. FBD has taken
appropriate rating action to date, and continues to monitor trends
to ensure that risks are adequately priced. Also, as set out in the
Group's preliminary announcement, the unprecedented persistent bad
weather during January and February will lead to an increase in the
cost of 2014 claims and the windstorm that hit Ireland on 12
February is likely to cost FBD EUR7.8m, net of reinsurance.
Underwriting expenses and longer-term investment return are both
in line with our expectations.
Investment Income
Actual investment return is better than expected, although it is
not at the exceptionally high level achieved in 2013.
Non Underwriting
While the operating environment for the Group's pensions and
investment consulting business remains challenging, FBD's financial
services businesses are broadly in line with expectation. The
trading performance of the property and leisure joint venture is
ahead of 2013, with strong operating results, particularly in
Ireland. The joint venture has entered into an agreement with
Taylor Wimpey, the leading UK residential developer with operations
in Spain, for the sale of a small segment of the development land
in La Cala.
Balance Sheet
The Group's financial position remains robust. Term deposits and
fixed interest securities represent 88% of insurance company
investment assets, higher than the 86% at year-end as the Group has
reduced its equity position. The average term of investment assets
remains shorter than that of the technical reserves, with more term
deposits and less fixed interest securities than the Group's
strategic investment allocation. The Group is satisfied that this
short term tactical asset allocation continues to be appropriate
and positions the Group well for the anticipated medium term rise
in market interest rates.
Outlook
FBD is committed to achieving profitable growth by constantly
focusing its business on the needs of customers. The Group
continues to invest in people and technology to develop platforms
for future growth. The Group intends to continue delivering
products and services that matter to its farming and direct
business customers. For the remainder of 2014, FBD will seek to
further increase penetration of key urban markets, in particular
Dublin, and of the business insurance market, in partnership with
brokers. The Board is confident that these initiatives, along with
personal lines business written through FBD, No Nonsense and the
Clan Insurance brands, will enable the Group to continue to
outperform the market for the remainder of 2014 and deliver
superior returns to shareholders.
The Group is re-affirming its previous guidance of full-year
2014 operating earnings per share of between 120 and 130 cent,
excluding any exceptional events that may arise.
About FBD Holdings plc ("FBD")
The Group was established in the 1960s and is one of Ireland's
largest property and casualty insurers looking after the insurance
needs of farmers, private individuals and business owners.
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.
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 or EG7.IR FBH.L
Enquiries Telephone
FBD Holdings plc
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
Joe Heron
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
IMSLLFFESRITFIS
Fbd (LSE:FBH)
Historical Stock Chart
From Jul 2024 to Aug 2024
Fbd (LSE:FBH)
Historical Stock Chart
From Aug 2023 to Aug 2024