Final Results

FBD Holdings PLC 5 March 2002 FBD HOLDINGS PLC PRELIMINARY ANNOUNCEMENT RESULTS FOR THE YEAR ENDED 31ST DECEMBER 2001 2001 2000 HIGHLIGHTS €000's €000's • Gross premiums written 247,959 205,487 +20.7% • Operating profit 30,184 27,872 +8.3% • Operating earnings per share 59.59c 54.75c +8.8% • Dividend per share 19.50c 17.25c +13.0% • Net assets per share 483.1c 394.4c +22.5% Commenting on the results, Paul O'Callaghan, Chief Executive, FBD Holdings plc stated: '2001 was another good year for FBD with gross written premiums increasing by 21% to €248m. and net assets up 22.5% to 483.1c per share. Were it not for the huge claims cost in respect of uninsured motorists, our underwriting results would have been significantly better'. ENDS 5th March 2002 For Reference Telephone No. FBD Paul O'Callaghan, Chief Executive Philip Fitzsimons, Deputy Chief Executive +353 1 4093200 MURRAY CONSULTANTS Joe Murray/Geraldine Kearney +353 1 6326400 FBD HOLDINGS PLC PRELIMINARY ANNOUNCEMENT FBD Holdings plc is pleased to announce excellent results for the year ended 31st December 2001. All of the Group's business divisions contributed to the strong financial performance. Operating profit increased by 8.3% to €30.2m. Operating earnings per share grew from 54.75c to 59.59c, up 8.8%, whilst net assets per share grew from €394.4c to €483.1c, up 22.5%. Insurance Underwriting Gross premiums written increased by 20.7% to €248m. The technical insurance result improved by 10.8% from €8.7m. to €9.7m., after crediting associated investment income of €24.8m. The underlying underwriting result, however, saw losses of €15.1m, up from €13.7m. in 2000. The significantly increased MIBI (Motor Insurers' Bureau of Ireland) cost for uninsured drivers impacted greatly on the motor losses which amounted to €22.3m. The MIBI charge for the year equated to €112 per car policyholder. While our property insurance portfolio performed very satisfactorily, our liability account continued to deteriorate due to the considerable escalation of employer and public liability claim costs. This is largely attributable to claims settlement inflation and rising legal costs. Financial Services On the general insurance brokerage side, the collapse of the Independent Insurance Company presented particular challenges that compounded ongoing underwriting capacity shortfalls in the market. Despite this, our general insurance and life assurance brokerages, IFSC and other financial services businesses continued to perform well with a contribution of €2.5m. to Group profits. Property/Leisure Our property/hotels/golf interests in Ireland and abroad contributed €10.1m. to operating profits in 2001. This was a highly satisfactory outcome and in particular reflects returns from our property and golf interests in Spain where very good progress is being made. Our year 2000 figure had been boosted substantially by the profit on the sale of the 14,300 sq. metre Guild Street office complex in the IFSC, Dublin. Balance Sheet Total assets grew by €126m. to €878m., an increase of 16.8%. Shareholders' funds increased by €37.2m to €202m, an increase of 23%. Retained earnings contributed €17m. of this increase. Spanish properties, previously held at cost, were revalued and the net uplift of €20.5m was recorded as an addition to Group reserves. The directors believe that the inclusion of all Group properties at market value provides more relevant information. In future, any further valuation adjustments will form part of operating profit. The resultant net assets value per share amounted to 483.1c. Dividend The excellent results enabled the Company to maintain its dividend growth policy and, accordingly, the Board is recommending a final dividend of 11.4 c per share. It is to be paid on 26th April 2002 to shareholders on the Company's Register at the close of business on 15th March 2002. The final dividend is subject to withholding taxes (DWT) except for shareholders who are exempt from DWT and have furnished a properly completed Composite Resident Form to the Company's Registrar. Together with the interim dividend of 8.10c, the total dividend per share amounts to 19.5c, an increase of 13%. Outlook The 11th September 2001 US tragedy has had serious repercussions on insurance costs and terms for customers. FBD Insurance has endeavoured to limit the impact on consumers of the increased reinsurance rates resulting from the event. We believe that our position as the only significant, Irish controlled insurance company in the domestic market, has enabled us to deal with the situation in a more benign and independent manner than our competitors to the benefit of our customers. Trading in the year to date continues to be buoyant throughout the Group. The Group is pursuing clearly defined growth plans in all businesses and is confident that our objectives are being achieved. ENDS FBD Developments Insurance/General: • The building programme at the Group's Headquarters in Dublin was completed in late 2001. The redesigned and extended FBD House comprises 5,250 sq. metres and is a landmark building on the Naas Road, now housing all of the Head Office staff of FBD Insurance, FBD Brokers and FBD Life. • FBD's branch office network now extends to 50 offices, with the addition of a new office in Ballaghaderreen, Co. Roscommon, early last year. The Company moved to new offices in Killarney, Co. Kerry, and relocated its Mallow, Co. Cork, premises after extensive refurbishment in the second half of 2001. • Staff numbers increased from 953 to 995 in year 2001, reflecting increased activity throughout the Group. • FBD Insurance's Dublin Business Unit in the IFSC has made excellent progress in developing a predominantly retail customer base in the greater Dublin area. Plans to expand the unit are being pursued. Property/Leisure • At La Cala Resort in Mijas, Spain, the 34-townhouse Las Terrazas development was completed and fully sold. Work on the Los Altos apartment project, consisting of 60 units, is well advanced and sales contracts have been signed for a large proportion of the apartments under construction. Villa sites also continue to be sold. • Plans for a third golf course at La Cala Resort are well advanced. La Cala's reputation as a premier golf location is well established and has given rise to demand exceeding capacity on the two existing courses. This has necessitated the development of a third course. • The second and final phase of the upgrade and refurbishment programme at Sunset Beach Aparthotel in Benalmadena, Spain is on schedule to be finalised by the end of spring. This multimillion investment will give the holiday complex 4 star status and enhance its reputation as a top quality popular holiday destination. • The Tower Hotel Group, in which FBD has a 50% interest, will open a newly built hotel in Derry in the near future. This will bring the number of hotels in the Tower Group to six. Major investment has been undertaken in the past year, including the outright purchase of Faithlegg Golf Course in Co. Waterford and the extensive refurbishment of the Tower Hotel in Waterford City. • The Group recently entered into a joint venture with Flag Properties Limited to develop a 7,500 sq. metre office block at 24-26 City Quay, Dublin, across the Liffey from the IFSC. Construction has commenced and is scheduled to be completed in May 2003. The development is expected to be valued at €60m. on completion. Financial Services: • Guild Global Securities, an associated FBD company engaged in securities lending, commenced operating in the IFSC last year and continues to make significant progress in establishing itself in the market. GROUP PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST DECEMBER 2001 2001 2000 €000's €000's Turnover 305,758 269,493 Balance on the technical account - general business 9,667 8,727 Longer term investment return 27,878 25,406 Allocated investment return transferred to the general business technical account (24,755) (22,448) Other income 17,770 16,724 Other charges (376) (537) ______ ______ Operating profit Note 1 30,184 27,872 Short term fluctuations in investment return (1,502) 12,479 ______ ______ Profit before taxation 28,682 40,351 Taxation (2,815) (5,296) ______ ______ Profit after taxation 25,867 35,055 Minority interests (323) (423) ______ ______ Profit after taxation and minority interests 25,544 34,632 Dividends (8,413) (7,502) ______ ______ Retained profit 17,131 27,130 ===== ===== Cent Cent Operating earnings per 60c ordinary share based on longer term investment return 59.59 54.75 ===== ===== Earnings per 60c ordinary share 60.47 82.38 ===== ===== Dividend per 60c ordinary share 19.50 17.25 ===== ===== Net assets per 60c ordinary share 483.1 394.4 ===== ====== Note 1 - Operating profit by activity Insurance/Reinsurance 17,635 12,091 Financial services 2,460 2,486 Property and Hotels/Leisure 10,089 13,295 ______ ______ 30,184 27,872 ===== ===== GROUP BALANCE SHEET AS AT 31ST DECEMBER 2001 2001 2000 €000's €000's ASSETS As restated Investments 765,884 659,203 Reinsurers' share of technical provisions 37,461 33,332 Debtors 35,509 29,344 Other assets 17,195 13,162 Prepayments and accrued income 21,892 16,448 _______ _______ TOTAL ASSETS 877,941 751,489 LIABILITIES Technical provisions (594,957) (519,392) Provision for other risks and charges (13,320) (6,712) Creditors (59,821) (53,954) _______ _______ NET ASSETS 209,843 171,431 ====== ====== CAPITAL AND RESERVES Ordinary share capital 25,090 26,530 Share premium 5,266 5,215 Reserves 171,667 133,049 ______ _______ ORDINARY SHAREHOLDERS' FUNDS 202,023 164,794 Preference share capital 2,923 3,093 Minority interests 4,897 3,544 ______ ______ 209,843 171,431 ===== ===== GROUP CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST DECEMBER 2001 2001 2000 €000's €000's Net cash inflow from operating activities 103,895 91,502 Dividends paid (7,879) (6,830) Corporation tax paid (6,587) (1,446) Capital expenditure (5,395) (3,627) Financing (821) 629 ______ _______ 83,213 80,228 ===== ====== Cash flows were invested as follows Increase (decrease) in cash holdings 2,842 (160) ______ ______ Net portfolio investment Quoted shares (18,737) 16,791 Quoted debt securities 113,652 (130,520) Unquoted shares 1,757 2,176 Deposits with banks (33,984) 176,393 Loans and advances (2,579) 13,909 Land and property 20,262 1,639 ______ ______ 80,371 80,388 ______ ______ Net investment of cash flows 83,213 80,228 ====== ====== STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES FOR THE YEAR ENDED 31ST DECEMBER 2001 2001 2000 €000's €000's Retained profit 17,131 27,130 Exchange translation adjustment 274 103 ______ ______ Total gains relating to the year 17,405 27,233 Prior year adjustment 20,475 - ______ ______ Total gains and losses recognised since annual report for year ended 31st December 2000 37,880 27,233 ===== ===== RECONCILIATION OF MOVEMENT IN ORDINARY SHAREHOLDERS' FUNDS FOR THE YEAR ENDED 31ST DECEMBER 2001 2001 2000 €000's €000's Profit after taxation and minority interests 25,544 34,632 Less: preference dividends (282) (299) ______ ______ 25,262 34,333 Dividends (8,131) (7,203) New share capital issued 68 629 Adjustment on renominalisation of preference share capital 170 - Other recognised gains 274 103 Repurchase of ordinary shares (889) - ______ ______ 16,754 27,862 Ordinary shareholders' funds at beginning of year as originally reported 164,794 136,932 Prior year adjustment 20,475 - ______ ______ Ordinary shareholders' funds at end of year 202,023 164,794 ===== ===== TECHNICAL RESULT BY CLASS OF BUSINESS YEAR ENDED 31ST DECEMBER 2001 Net Earned Net Claims Net Op Underwriting Allocated Technical Premiums Incurred Expenses Result Inv Income Result €000's €000's €000's €000's €000's €000's Direct insurance Motor 120,448 (124,687) (18,040) (22,279) 15,050 (7,229) Liability 36,295 (40,643) (6,173) (10,521) 6,839 (3,682) Fire & Property 32,760 (17,804) (202) 14,754 1,633 16,387 Other 3,152 (1,977) (371) 804 180 984 _______ _______ _______ _______ _______ _______ Total direct insurance 192,655 (185,111) (24,786) (17,242) 23,702 6,460 Reinsurance acceptances 209 2,129 (184) 2,154 1,053 3,207 _______ _______ _______ _______ _______ _______ Total 192,864 (182,982) (24,970) (15,088) 24,755 9,667 ====== ======= ====== ====== ====== ====== YEAR ENDED 31ST DECEMBER 2000 Net Earned Net Claims Net Op Underwriting Allocated Technical Premiums Incurred Expenses Result Inv Income Result €000's €000's €000's €000's €000's €000's Direct insurance Motor 105,097 (111,883) (16,042) (22,828) 13,321 (9,507) Liability 29,529 (30,588) (4,965) (6,024) 6,236 212 Fire & Property 31,923 (19,412) (1,549) 10,962 1,577 12,539 Other 2,975 (2,259) (176) 540 189 729 ______ ______ ______ ______ ______ ______ Total direct insurance 169,524 (164,142) (22,732) (17,350) 21,323 3,973 Reinsurance acceptances 1,114 2,798 (282) 3,630 1,124 4,754 ______ _______ ______ ______ ______ ______ Total 170,638 (161,344) (23,014) (13,720) 22,447 8,727 ====== ====== ====== ====== ===== ===== This information is provided by RNS The company news service from the London Stock Exchange

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