FBD Holdings plc 2007 Interim Results August 2007 A

FBD Holdings plc

2007 Interim Results

August 2007

A.

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Forward Looking Statements

This presentation contains certain forward-looking statements. Actual results may differ materially from those projected or implied in such forward-looking statements. Such forward-looking information involves risks and uncertainties that could affect expected results.


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Indigenous Irish company

Primary Business

Other Interests

Excellent growth record

Committed to

Key Business Driver

………. Founded in 1970………. Stock Exchange, 1989

………. Insurance Underwriting (Property/Casualty)

………. Leisure/Property Development………. Financial Services

……… “TSR” 46% p.a., last 5 years

………. Shareholders, customers, staff

………. Maximising shareholder value


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Mission Statement

“In our target markets, to be the leading customer focused

insurance group, delivering long term sustainable value.”


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Operational Highlights: H1 2007Underwriting Strong new business volumes offset reduced premium rates Premium income ahead of 2006

Policy count up 3% on December 2006

Business Support Centre (“BSC”) commenced operations in February 2007- 90 FTE staff

- 12,500 phone calls on average per week - Phone traffic to 12 offices migrated to BSC - Branch staff freed up to focus on sales

Progress in Dublin market maintained

Platform for business growth enhanced….. technology based efficiencies advanced


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Non-Underwriting – Leisure/Property Development

La Cala Property handovers ahead of comparable 2006 period Improved trading in hotel and golf activities

Sunset Excellent performance Record visitor numbers

Tower Visitor numbers up – improved trading


Operational Highlights: H1 2007

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FBD Life Continued strong growth

FBD Brokers Maintained performance

Capital Fund Balance in fund reduced arising from

decision to return capital

………. Customer and product opportunities exploited

………. In highly competitive environment

……….Remaining fund impacted by weak equity markets


Operational Highlights: H1 2007

Non Underwriting – Financial Services

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Corporate

Capital Management

- €176m of capital distributed to shareholders on 27th June 2007

- Flexible capital return mechanism devised to maximise returns for all shareholders

- Buy back of 957,000 shares in June 2007 for €31.1m

Organisation

- Management capacity enhanced by key appointments

- Formation of dedicated strategic developments unit


Operational Highlights: H1 2007 (contd)

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H1 2007 H1 2006 %

€000s €000s

Gross written premiums 205,445 203,996 +0.7%

Net earned premiums 175,596 173,166 +1.4%

Underwriting result 26,158 41,649 -37.2%

Operating profit 65,118 75,721 -14.0%

Financial Highlights


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H1 2007 H1 2006

Cent Cent

Operating earnings per share 158.45 173.11 -8.5%

Dividend per share 27.50 24.00 +14.6%

Distribution of financial reserves per share 500.00 -

31/12/06

Net asset value per share 938.67 1,424.76

% %

Return on equity (6 months) 11% 26%

Financial Highlights (contd)2007 Interim Results

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Income StatementH1 2007 H1 2006

€000s €000s %

Gross written premiums 205,445 203,996 +0.7%

Net earned premiums 175,596 173,166 +1.4%

Net claims incurred (122,777) (108,558) +13.1%

Net operating expenses (26,661) (22,959) +16.1%

Underwriting Result 26,158 41,649 -37.2%

Loss Ratio 69.9% 62.7%

Net Expense Ratio 15.2% 13.2%

Combined Ratio 85.1% 75.9%


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Operating profit by activity:

Insurance underwriting 53,681 65,422

Non-underwriting

- Property/leisure 7,397 3,728

- Financial services/other 4,267 2,740

- Capital fund (227) 11,437 3,831 10,299

65,118 75,721

Income Statement (contd)


H1 2007

€000s

H1 2006

€000s

%

Underwriting Result 26,158 41,649 -37.2%

Longer term investment return 27,523 23,773 +15.8%

Non underwriting operating income 11,437 10,299 +11.0%

Operating profit 65,118 75,721 -14.0%

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H1 2007 H1 2006

€000s €000s

Operating profit 65,118 75,721

Profit on sale of land at La Cala - 83,626

Short term fluctuation in investment return (12,458) 318

Finance costs (2,912) (2,220)

Profit before tax 49,748 157,445

Income tax expense (5,048) (34,845)

Profit for the year 44,700 122,600

Income Statement (contd)


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Balance Sheet - Assets30/06/07 31/12/06

Property & Equipment €000s €000s

Hotels/golf 181,661 180,369

Property – own use 32,735 33,195

Fixtures & Fittings 17,307 231,703 16,815 230,379

Investments

Property 81,291 81,181

Financial 939,867 1,099,309

Reinsurers’ share of technical provisions 81,144 72,553

Other receivables/DAC’s 93,025 99,319

Other Assets

Development land 31,549 32,608

Work-in-Progress 38,004 33,825

Cash 35,022 104,575 37,423 103,856

Total Assets 1,531,605 1,686,597


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Balance Sheet - Liabilities

Equity

30/06/07

€000s

31/12/06

€000s

Share Capital 21,277 21,277

Reserves 299,378 476,242

Shareholders’ funds – equity interests

320,655 497,519

Preference Shareholders 2,923 2,923

Minority Interests 6,636 6,476

Total equity 330,214 506,918

Liabilities

Technical provisions

- Unearned premiums 200,698

197,507

- Claims 751,500

952,198 734,439 931,946

Deferred tax 31,520 33,227

Creditors

- Loans 103,492

112,350

- Other 114,181

217,673 102,156 214,506

Total Liabilities 1,531,605 1,686,597


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Reconciliation of Movement in Shareholders’ Funds

30/06/07

€000s

30/06/06 €000s

Balance at 1st January 506,918 485,473

Profit for the period 44,700 122,600

Return of capital (175,645) -

Buyback of own shares (31,134) (129,212)

Dividends paid (15,798) (14,277)

Available-for-sale investments - (6,325)

Other 1,173 1,682

Balance at 30th June 330,214 459,941


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Cash Flow StatementH1 2007

€000sH1 2006

€000s

Net Cash from operating activities 101,271 129,963

From investing activities 125,664 10,438

Used in financing activities (229,215) (144,217)

Net decrease in cash and cash equivalents (2,280) (3,816)

Cash and cash equivalents at the beginning of the period 37,423 41,897

Effect of foreign exchange rate changes (121) (334)

Cash and cash equivalents at the end of the period 35,022 37,747


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Return on Equity

2003 2004 2005 2006 H1 2007 H1 2006

Underwriting 50.75% 43.78% 53.08% 58.44% 16.38% 23.36%

Non underwriting 13.68% 8.63% 11.63% 39.75% 3.42% 30.00%

Total 35.09% 31.61% 36.53% 50.61% 10.86% 26.46%


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Market Shares Gross Written Premium – 2006 (IIF)

5.0%

10.4%

5.0%

11.1%12.8%14.1%

13.3%14.9%

5.7%

12.4%

4.8%

7.8%

10.3%

10.7%

11.6%

12.0%

20.7%

9.7%

8.8%

12.3%

10.2%

13.2%

10.7%

21.1%

9.3%

8.7%

7.1%

9.0%

21.8%

8.7%

6.4%

11.7%

21.7%

8.7%9.4%

8.2%

Others(14)AIGEagle StarR.S.A.AXAFBDAllianzQuinnHibernian

20062005200420032002

Total Market 2006 - €3,822m: 2005 - €3,841m: 2004 - €3,933m : 2003 - €4,239m: 2002 - €3,955mFBD Premium 2006 - €407m: 2005 - €389m: 2004 - €351m: 2003 - €369m: 2002 - €326m


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OutlookGroup Expect to achieve analysts’ full year operating earnings forecast

Underwriting Insurers expect price competition to abate

Further reductions in premium only justifiable if progress on claims reform agenda sustained

Further improvement in claims environment possible

Confident that we will continue to grow our customer base

Ongoing investment in our operational platform will deliver growth - Business Support Centre - Technology enhancements programme

- New strategic developments unit


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Outlook

Non-Underwriting

Leisure/Leisure Property Development Businesses on course to deliver performances ahead of 2006

Anticipate regional planning approval necessary to trigger La Cala Tranche II €80m land sale payment in H1 2008

Financial Services

Businesses on course to deliver performances ahead of 2006

Continued growth in investment/life product sales


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Outlook

Capital

Efficient capital management will continue

Repatriations of €472m since March 2005 evidence of attention to capital management

Growth in dividend/earnings payout ratio to be maintained


Documents

FBD Holdings plc 2007 Interim Results August 2007 A