AGM Statement

FBD Holdings PLC
23 April 2002

                    ADDRESS OF MR. MICHAEL BERKERY CHAIRMAN

                                FBD HOLDINGS PLC

                         TO THE ANNUAL GENERAL MEETING

                            TUESDAY, 23RD APRIL 2002

Addressing the AGM of FBD Holdings, plc today, Chairman Mr. Michael Berkery,
reported that in the year ending December 2001, FBD increased its operating
profits by 8.3% to €30.2m and earnings per share by 8.8% to 59.59c. Net assets
per share increased by 22.5% to 483.1c.

Mr Berkery said that FBD is the only significant, Irish owned insurance company
in the Irish market and that once again the Group's results demonstrate the
success of the FBD growth strategy in its key business, with all the Group's
business divisions contributing to this strong growth.

The FBD Chairman welcomed the broad thrust of the recent MIAB Report
recommendations, but said he is concerned at the public misconceptions regarding
the profitability of underwriting motor insurance in Ireland.


'The Report refers to profitability in Ireland during the seventeen year period
1983 - 1999 without any reference to solvency. It was announced that profits
here in Ireland were approximately 10 times those of the UK. Whilst this was
correct in absolute terms, it implied that Irish insurers were making excessive
profits. What failed to be highlighted was the critical fact that the UK profit
margin on earned premiums amounted to a paltry 0.03% with the Irish margin being
approximately 4%. Irish commentators ignored the reality that this level of
margin is totally inadequate. They have forgotten the recent demise of the
Independent Insurance Group who underwrote business at uneconomic rates. As an
Irish Insurance Company, we have always adopted a policy of prudent
underwriting. Solvency margin ought to receive similar attention as profit
levels in this public debate'.


'The Report contains very many worthwhile recommendations that should, if
implemented, reduce the cost of insurance. What is needed now is an action plan
and an implementation timetable to bring about the necessary changes and the
onus is on Government to deliver on the key requirements. The insuring public
will shortly have an opportunity, with the impending General Election, to ask
their elected representatives to ensure that the necessary action is taken. It
is up to all of us to decide on and influence the type of insurance and claims
culture we are willing to support.'


ENDS                                    23rd April 2002

For Reference:

Murray Consultants:                     353 1 632 6400

Joe Carmody

Geraldine Kearney



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