FBD Holdings PLC Trading Statement (0989K)
June 20 2014 - 2:00AM
UK Regulatory
TIDMFBH
RNS Number : 0989K
FBD Holdings PLC
20 June 2014
FBD Holdings plc
Trading Statement
20 June 2014
FBD Holdings plc ("FBD" or the "Group") is issuing the following
trading statement covering the period up to today's date.
Premium
Premium levels in the Irish insurance market have begun to
benefit from the recent growth in economic activity. While the
market has continued to be competitive, rates have hardened for
both car insurance and business insurance.
FBD's gross premium written to the date of this statement is
ahead of the previous year by over 4%, primarily through growth in
car and commercial insurance. Over 60% of the increase in premium
is attributable to average premium and the remainder to policy
volume. Overall, the Group expects that its share of the insurance
market is likely to have increased further in the year to date.
Claims
As indicated in previous announcements, increased economic
activity leads to higher claims frequency with more vehicles
driving more miles on increasingly congested roads. Retail sales of
automotive fuel, a proxy for miles driven and motor insurance risk,
is up 6% year on year, exceeding growth in economic activity and
our expectation. This has had an impact on frequency of attritional
motor claims which has risen sharply in recent months. The increase
is not restricted to any one segment of our motor book. It applies
equally across all customer profiles.
Although FBD has taken appropriate rating action in response to
this development, we continue to win policy volume and market
share. This suggests that most of our competitors have also been
adjusting their rates similarly.
The Group will continue to monitor claims to ensure that risks
are adequately priced and take further action, if necessary. Growth
in economic activity will have a positive effect on FBD in the
medium term, particularly given the Group's track record of
outperforming the market. However, it will have a higher than
expected impact on profitability in 2014 and the first half of
2015.
The Group's estimate of the cost of the unprecedented persistent
bad weather over the winter has increased by EUR4 million, net of
reinsurance. The total cost of weather claims last winter for FBD
customers, gross of reinsurance, now stands at EUR44 million.
Large claims frequency during 2014 to date is in line with
expectations, reverting to norm following the unusually high levels
experienced in 2013.
Other
The Group is pleased to record that the actual investment return
in the year to date is ahead of budget and the Group's share of the
results of the property and leisure joint venture is ahead of both
budget and the previous year.
Revised Guidance
FBD has a track record of delivering superior returns to
shareholders. The nature of the insurance business is that earnings
will be influenced from time to time by random weather events and
the fact that the industry is inherently cyclical. The Board is
confident that FBD is well positioned to outperform the market and
deliver strong returns for shareholders. As a result, the Board
remains committed to its progressive dividend policy.
The Board expects that the combined impact of the increase in
claims frequency and the weather related claims will be EUR16
million in 2014. As a result, the Group is now guiding full-year
2014 operating earnings per share of between 70 and 80 cent,
excluding any further exceptional events that may arise.
ENDS
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
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
TSTSFFFAUFLSEIM
Fbd (LSE:FBH)
Historical Stock Chart
From Jun 2024 to Jul 2024
Fbd (LSE:FBH)
Historical Stock Chart
From Jul 2023 to Jul 2024