AGM Statement

FBD Holdings PLC
26 April 2006


                                FBD HOLDINGS PLC

                             ANNUAL GENERAL MEETING

                           Wednesday, April 26th 2006

                   HIGHLIGHTS OF CHAIRMAN'S STATEMENT TO AGM

UNDERWRITING

   •Insurance underwriting the main driver of performance

   •Measures to reduce the incidence of claims and to reform the over-costly
    claims regime have been key to the underwriting turnaround of recent years

   •Reforms yet to be implemented can bring further significant benefits

   •Change of mindset by motorists and adequate enforcement needed

NON-UNDERWRITING

   •Political and economic factors dampen performance of Leisure-Property
    interests

   •Intrinsic value of property and leisure assets evidenced by recent
    conditional agreement for property sale at La Cala

   •Intention to distribute net proceeds of sale by way of two special
    dividends

CAPITAL ALLOCATION

   •Appraised on an ongoing basis

CURRENT YEAR

   •Overall business targets being achieved in year to date

   •Urban and city markets key elements in growth strategy





Speaking on road safety and reforms yet to be implemented at the AGM, the
Chairman, Michael Berkery, said:

'I welcome recent moves by the government on this front but caution that
introducing penalty points, per se, will not deliver the desired improvement in
road accident statistics. What needs to be brought about is a change in mindset
by all motorists, especially younger drivers, underpinned by adequate
enforcement of the new and the old traffic laws. Sufficient resources must be
deployed by Government to achieve this. I would suggest that the 2% Government
Levy on insurance premiums, which amounted to approximately €80m. in 2005, be
applied specifically in support of this objective'.



                               CHAIRMAN'S ADDRESS

As I have stated in our Annual Report, 2005 was another highly successful year
for the FBD Group. It was a year in which we surpassed all previous
performances, with

   •Operating profit up by 30.3% to €162.6m.
   •Operating earnings per share, up by 41.9% to €3.64

   •Net assets per share up by 29% to €12.51

In view of the excellent results, the Board is recommending a final dividend of
37.5c, which brings the total dividend for the year to 57.5c. This represents an
increase of 43.75% on the 2004 figure and is a further indication of the Board's
commitment to increase dividend payout relative to the earnings achieved by the
Group.

As you are aware, INSURANCE UNDERWRITING is the core activity of the Group. It
has been the main driver of our excellent overall performance. Shareholders and
policyholders alike have benefited from the favourable turnaround in our
underwriting experience which has been a feature of FBD's and other Irish
insurers' performance in recent times. As a result, FBD shareholders have
enjoyed higher returns whilst policyholders have benefited from significant
reductions in premiums.

As most people are aware, the critical catalyst in delivering the turnaround in
underwriting performance was the concerted effort made by all interested parties
to introduce measures to reduce the incidence of claims and to reform the
over-costly claims regime which hitherto had operated in Ireland. It is widely
accepted that reforms yet to be implemented have the potential to deliver
further significant benefits. One immediately thinks of the savings, not only in
broad economic terms but in human trauma also, that would emerge from an
improvement in road safety throughout the country. I add my voice, once again,
to the ongoing calls that are being made on Government to attend to this matter
as a critical national priority and to resolve all of the issues that have
impeded delivery. I welcome recent moves by the Government on this front but
caution that introducing penalty points, per se, will not deliver the desired
improvement in road accident statistics. What needs to be brought about is a
change of mindset by all motorists, especially younger drivers, underpinned by
adequate enforcement of the new and the old traffic laws. Sufficient resources
must be deployed by Government to achieve this. I would suggest that the 2%
Government Levy on insurance premiums, which amounted to approximately €80m. in
2005, be applied specifically in support of this objective.

In relation to the Group's LEISURE and LEISURE-PROPERTY businesses, we all know
that global and domestic political and economic factors impact particularly on
them. In 2005, these pressures continued to feature adversely and dampened the
performance of our interests both in Spain and in Ireland. Given these
circumstances, a key consideration for the Board is the intrinsic value of these
property and leisure assets. In this regard, shareholders will have been pleased
to learn that post year end, the conditional sale of the major portion of our
building land at La Cala in Spain was agreed at a significant premium to
carrying value. The Board has also informed shareholders of its intention to
distribute the net proceeds of this sale, which would be up to €120m, by way of
two special dividends.

The utilisation of capital generated in the Group, which has not been
specifically allocated to one of our existing operating businesses, is a matter
which the Board appraises on an ongoing basis. Shareholders will recall that, in
March 2005, €81m. of shareholders' funds was used in a share buyback when KBC
placed their 23% shareholding on the market. The remaining non-allocated capital
and the funds subsequently generated and retained constitute, what the Board
terms, a 'capital fund'. How best to maximise this capital for the benefit of
shareholders is kept under ongoing review. At this particular juncture, apart
from the dividend payouts already mentioned, the Board has decided to retain
this capital in the Company and to investigate all possible opportunities to
invest some or all of it in the Group's primary business of insurance
underwriting, or in related financial service activities. Whilst it is
investigating such possibilities, the Board does not rule out other options for
use of capital if it deems them to be in the best interests of shareholders.

On the CORPORATE front, the placing in the market by KBC of its entire
shareholding in our Group in March 2005, which I referred to earlier,
constituted a significant change in the shareholding structure of the Company,
with many new institutional shareholders coming on board.

The sale by KBC marked an historic milestone in the life of FBD. KBC had been a
substantial shareholder in FBD since FBD's foundation in the late 1960s. Their
decision to dispose of their stake was undertaken for KBC's own strategic
reasons and with the full knowledge of FBD. I wish to record my personal thanks,
and that of the Board, to KBC for the role they played and the solid
shareholding position they maintained in FBD down through the years. Their
shareholding bridged our Group's pre and post Stock Exchange Listing and I am
pleased that Johan Thijs, KBC's Non-Life General Manager, agreed to remain on
the FBD Board as a Non-Executive Director. As I have alluded to, the departure
of KBC created an opportunity for new investors to acquire stock in the Company.
I wish to take this opportunity to welcome them to FBD and to acknowledge their
confidence in our Group.

In February of this year, Mr. John Dillon resigned as a Director. I wish to
thank John for his valuable contribution to the Board during the four years he
served as a Director. In March of this year, Mr. Padraig Walshe, the recently
elected President of The Irish Farmers' Association, was co-opted onto the
Board. I welcome Padraig and I am sure he will make a valuable contribution as a
Board Member.

In looking to the FUTURE, we draw confidence from the past year, when FBD
expanded its core business base significantly. Customer numbers grew and the
Organisation has strengthened, structurally and resource wise. New markets were
sourced and the momentum for growth was advanced. I am pleased to say that this
progress has continued in the year to date and that we are achieving our overall
business targets. As we have previously signalled, urban and city markets are
key elements in our growth strategy. With clearly defined objectives and
appropriate plans being pursued to achieve them, I am confident that FBD's
success will continue.

In conclusion, I want to sincerely thank the Board, Management and Staff for
their hard work and dedication which have yielded the results I am so pleased to
report on. Their commitment and ability are vital in the success we have
achieved, and in maintaining profitable growth in the future.


For Further Information, please contact:

Mr. Philip Fitzsimons, FBD                       Tel: [phone]

Mr. Joe Murray, Murray Consultants               Tel: [phone]

                                                 Mobile: [phone]




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