FBD buys back shares in KBC

FBD Holdings PLC
09 March 2005


                                 PRESS RELEASE

                      FBD BUYS BACK SHARES IN KBC PLACING

FBD Holdings plc (FBD) announces that it has participated by way of buy-back in
to-day's placing on the market by KBC of its entire 22.1 per cent shareholding
in FBD.

Of the 9.3 million shares placed by KBC, FBD has purchased 4.2 million, the
maximum allowable, representing 10 per cent of the issued capital in the
Company.

FBD decided on the buy-back in the light of the purchase price and the positive
impact the buy-back will have on earnings per share. This is estimated to
deliver a 5 per cent increase in EPS in 2005.

Of the 4.2 million shares bought back by the Company, 2.7 million will be
cancelled and 1.5 million will be held as treasury shares to meet outstanding
share options as they come to be exercised.

The shareholding position in FBD Holdings after the above will be:

Farmer Business Developments plc      34.5%
FBD Trust Limited                      7.9%
Free float                            57.6%


Commenting on the Announcement today, Philip Fitzsimons, Chief Executive,
stated:

'KBC (formerly ABB) was one of the founding shareholders in the FBD Group back
in 1970. KBC's decision to sell their shareholding had been advised to FBD. It
followed a strategy review by KBC which placed the focus of their development
plans on growing their insurance and bank assurance business in Eastern Europe.
In addition, they had also determined that holding a majority stake in any
venture they were engaged with was a key strategic matter for them. In the
context of FBD, they did not see the possibility of achieving this in the short
to medium term and consequently decided to sell their stake.

'FBD understands KBC's rationale for its decision. In the early days of FBD,
KBC's participation was as a strategic joint venture partner. This has changed
as FBD has grown in strength, size and independence, particularly following
FBD's listing on the Dublin and London Stock Exchanges in 1989 when new
investors came on board. The free float in the Company will move from 40 per
cent to 58 per cent following the placement.

'FBD acknowledges the supportive role KBC has played in its progress,
particularly in its formative years. FBD's positive relationship with KBC will
continue into the future, as Johan Thijs (General Manager, Non-Life Insurance,
KBC) will remain on the FBD Holdings Board as a non-executive director. KBC
Group will also continue its long standing participation in FBD's reinsurance
programmes'.

Ends.                                             9th March 2005

For reference:                                    Telephone:
----------------
FBD                                               353 1 409 3200
Philip Fitzsimons, Chief Executive

Murray Consultants                                353 1 498 0300
Joe Murray                                        086 253 4950



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