FBD Holdings plc

FBD Holdings plc

2008 Interim Results

August 2008

2

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.


3

Contents H1 2008 Highlights Page

• Underwriting 4

• Non-Underwriting 9

• Corporate 10

Summary Financial Statements

• Income Statement 11

• Balance Sheet 14

• Statement of Changes in Equity 16

• Cash Flow Statement 17

• Return on Equity 18

Outlook 19

4

H1 2008 Highlights - Underwriting

FBD now 3rd largest non-life insurer in Irish market


5

Market Shares Gross Written Premium – 2007

11.9

0%

5.20

%

8%

10%10.4

0%

11.2

0%

11.3

0%

12.2

0%

19.9

0%

5.0%

10.4%

5.0%

12.8%

11.1%

8.7%

11.7%

8.2%

5.7%

10.3%

20.7%

12.0%

10.7%

11.6%

9.7%

7.8%

4.8%

12.4%

8.7%9.3%

21.1%

12.3%

8.8%

10.2%

10.7%

13.2%

14.1%

21.8%

9.0%

7.1%

14.9%

9.4%

8.7%

21.7%

13.3%

6.4%

Others(14)AIGEagle StarAXAR.S.A.AllianzFBDQuinnHibernian

200720062005200420032002

Total Market 2007 -€3,604m: 2006 - €3,822m: 2005 - €3,841m: 2004 - €3,933m : 2003 - €4,239m: 2002 - €3,955mFBD Premium 2007 - €408m: 2006 - €407m: 2005 - €389m: 2004 - €351m: 2003 - €369m: 2002 - €326m

6

H1 2008 Highlights - Underwriting FBD now 3rd largest non-life insurer in Irish market

Top Line Performance● Growth of recent years consolidated● Strong new business volumes● Retention impacted by unrealistic pricing of certain competitors● Underwriting discipline maintained● Excellent outcome in a competitive market

Support Centre● Aim – cost efficient and customer centric delivery and service of

personal lines● 165 FTE staff● 21,000 calls per week● 27 branch offices “migrated”


7

H1 2008 Highlights - Underwriting Business developments

“No Nonsense” car insurance launched via Ryanair website Aimed at price-conscious/no frills customer Take up in line with expectations Builds platform for other distribution activities

E-Commerce car insurance proposition brought to launch stage

Pilot of commercial business via intermediaries

Branch network aligned to exploit commercial opportunities- Athlone- Newbridge

“Enhancing our business platform and creating capacity toextend our reach by meeting customer needs, cost effectively”


8

H1 2008 Highlights - Underwriting Investments

Continued de-risking of balance sheet


9

H1 2008 Highlights – Non Underwriting La Cala

Market environment for property sales challenging Focus on costs

Sunset Excellent performance Record revenue and visitor numbers

Tower Revenue ahead of 2007 Oversupply in certain market segments

Financial Services Contribution from FBD Brokers maintained Reduced customer appetite for retail investment products due to volatile

markets

Capital Fund Converted to cash


10

H1 2008 Highlights – Corporate Capital Management

10% increase in interim dividend

Remain committed to efficient capital management and maximising shareholder returns

March 08 – Stated intention of returning €94.2m to shareholders Board reconsidered decision in light of market conditions Decision made to distribute €1.50 per share (€49.8m) in Oct 08 Retain flexibility to repatriate further capital to shareholders subject

to market conditions


11

Income StatementH1 2008 H1 2007

€000s €000s

Gross written premiums 198,335 205,445

Net earned premiums 173,853 175,596

Net claims incurred (130,586) (122,777)

Net operating expenses (30,451) (26,661)

Underwriting Result 12,816 26,158

Loss Ratio 75.1% 69.9%

Net Expense Ratio 17.5% 15.2%

Combined Ratio 92.6% 85.1%


12

Operating profit by activity:

Insurance underwriting 35,897 53,681

Non-underwriting

- Property/leisure 3,203 7,397

- Financial services/other 2,510 4,267

- Capital fund (869) 4,844 (227) 11,437

40,741 65,118

Income Statement (contd)


H1 2008

€000s

H1 2007

€000s

Underwriting Result 12,816 26,158

Longer term investment return 23,081 27,523

Non underwriting operating income 4,844 11,437

Operating profit 40,741 65,118

13

H1 2008 H1 2007

€000s €000s

Operating profit 40,741 65,118

Short term fluctuation in investment return (44,175) (12,458)

Finance costs (1,780) (2,912)

(Loss) profit before tax (5,214) 49,748

Income tax expense (1,334) (5,048)

(Loss) profit for the year (6,548) 44,700

Income Statement (contd)


14

Balance Sheet - Assets30/06/08 31/12/07

Property & Equipment €000s €000s

Hotels/golf 192,628 192,352

Property – own use 33,446 32,806

Fixtures & Fittings 17,071 243,145 18,186 243,344

Investments

Property 69,150 83,019

Financial 786,556 823,151

Reinsurers’ share of technical provisions 54,348 50,483

Other receivables/DAC’s 107,164 85,705

Other Assets

Development land 30,781 30,781

Work-in-Progress 32,144 34,964

Cash 35,562 98,487 35,618 101,363

Total Assets 1,358,850 1,387,065


15

Balance Sheet - Liabilities

Equity

30/06/08

€000s

31/12/07

€000s

Share Capital 21,277 21,277

Reserves 338,057 362,312

Shareholders’ funds – equity interests

359,334 383,589

Preference Shareholders 2,923 2,923

Minority Interests 5,620 5,689

Total equity 367,877 392,201

Liabilities

Technical provisions

- Unearned premiums 198,071

199,074

- Claims 618,136

816,207 612,852 811,926

Deferred tax 22,124 27,738

Creditors

- Loans 60,729 60,406

- Other 91,913 152,642 94,794 155,200

Total Liabilities 1,358,850 1,387,065


16

Statement of Changes in Equity

30/06/08

€000s

30/06/07 €000s

Balance at 1st January 392,201 506,918

(Loss) profit for the period (6,548) 44,700

Return of capital - (175,645)

Buyback of own shares - (31,134)

Dividends paid (17,277) (15,798)

Other (499) 1,173

Balance at 30th June 367,877 330,214


17

Cash Flow StatementH1 2008

€000sH1 2007

€000s

Net Cash from operating activities 11,766 101,271

From investing activities 5,590 125,664

Used in financing activities (16,934) (229,215)

Net increase (decrease) in cash and cash equivalents 422 (2,280)

Cash and cash equivalents at the beginning of the period 35,618 37,423

Effect of foreign exchange rate changes (478) (121)

Cash and cash equivalents at the end of the period 35,562 35,022


18

Return on Equity

2003 2004 2005 2006 2007 H1 2008 H1 2007

Underwriting 50.75% 43.78% 53.08% 58.44% 49.46% (3.54%) 16.38%

Non underwriting 13.68% 8.63% 11.63% 39.75% 2.89% 1.71% 3.42%

Total 35.09% 31.61% 36.53% 50.61% 31.73% (1.84%) 10.86%


19

Outlook : Underwriting

Market premiums in certain lines unrealistic

Steady increase in claims costs

Severe weather in July / August 2008 Impact FBD Impact Industry

Increasing evidence of stabilising rates


20

Outlook : Underwriting (contd)

Combined ratios reported in market signal hardening market in near future

FBD well positioned to benefit from hardening market

Initiatives in progress Internet car insurance offering launch in early September – home

insurance before year end Metro markets Enhancing Support Centre delivery


21

Outlook : Non Underwriting

● Leisure/Leisure Property Development● Market conditions will continue to be challenging● Marketing/sales initiatives countering market conditions● Management focused on operational efficiencies

● La Cala Land Sale● Delivery of planning achievable

● Financial Services● Focus on deposit and protection products● Consolidate customer relationships


22

Outlook : Corporate

● Capital● Maximising returns via efficient capital management

● Progressive dividend policy to continue

● Repatriation since March 2005 now total €546m. (excl. ordinary dividends)


FBD Holdings plc

2008 Interim ResultsQUESTIONS?

A.August 2008

Date post:	03-Jan-2016
Category:	Documents
Upload:	judith-holt
View:	27 times
Download:	2 times

FBD Holdings plc

Documents