FBD Holdings PLC Interim Management Statement (1242N)
May 14 2015 - 2:01AM
UK Regulatory
TIDMFBH
RNS Number : 1242N
FBD Holdings PLC
14 May 2015
FBD Holdings plc
Interim Management Statement
14 May 2015
FBD Holdings plc ("FBD" or the "Group") is issuing the following
Interim Management Statement covering the first quarter of 2015 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
Trading conditions in the Irish insurance market remain
challenging in 2015. Market rates continue to harden for both car
insurance and business insurance, while home insurance rates remain
weak with increased competition for new business given a benign
winter and the absence of significant weather events.
FBD's gross premium written to the end of the first quarter is
marginally less than the comparable quarter in 2014 as firmer
pricing substantially offset volume reductions. The Group continues
to focus considerable resources on its farming and direct business
customers, further consolidating its market leading position in
these areas. FBD continues to demonstrate underwriting discipline
by foregoing volume growth in those sectors of the market which
have become unprofitable. Overall, the Group expects that its share
of the insurance market is likely to have remained static in the
year to date.
Economic growth will ultimately benefit FBD. However, the
continuing significant uncertainty in the claims environment will
impact the development of booked claims reserves and profitability
in 2015 and FBD has taken appropriate underwriting and rating
action to date. There are early indications that these actions are
restoring the business written in 2015 to profitability.
Non-Underwriting
While the operating environment for the Group's pensions and
investment consulting business remains challenging, FBD's financial
services businesses are performing broadly in line with the prior
year. The trading performance of the property and leisure joint
venture is on target and its joint venture with Taylor Wimpey, the
leading UK residential developer with operations in Spain,
continues to perform well.
Balance Sheet
The Group's financial position is solid. Given the headwinds in
the claims environment, the Board believes that the long term
interests of the Group are best served by remaining prudent at this
time. It has decided that no interim dividend will be declared in
August. A decision on any final dividend will be made once the 2015
financial results are known.
Term deposits and fixed interest securities represent 91% of
insurance company investment assets, higher than the 88% 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
remains appropriate in current market conditions.
Outlook
FBD is committed to returning to profitable growth by focusing
on sustainable business and on meeting its customers evolving
needs. For the remainder of 2015, FBD will seek to continue to
restore profitability through risk selection improvements and rate
increases where these are merited or required. The Board is
confident that the rating actions already taken along with the
exceptional service ethos of its employees will ensure that the
Group continues to deliver for its customers and that it will
ultimately revert to delivering superior returns to shareholders
over the insurance cycle.
About FBD Holdings plc
The FBD 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
Fiona Muldoon, Group Finance Director
Peter Jackson, Head of Investor Relations
Murray Consultants
Joe Heron +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
IMSLLFFAELIVLIE
Fbd (LSE:FBH)
Historical Stock Chart
From Jun 2024 to Jul 2024
Fbd (LSE:FBH)
Historical Stock Chart
From Jul 2023 to Jul 2024