Interim Results

FBD Holdings PLC
28 August 2002

                                 Press Release


                          INTERIM RESULTS ANNOUNCEMENT


                       FOR HALF YEAR ENDED 30TH JUNE 2002



                                                                     2002               2001           Increase
FINANCIAL HIGHLIGHTS                                               €000's             €000's               %

  • Net premiums earned                                           114,641             92,310            +24.2%

  • Operating profit                                               17,323             12,918            +34.1%

  • Operating earnings per share                                   35.03c             25.19c            +39.1%

  • Dividend per share                                              9.10c              8.10c            +12.3%


FBD Holdings plc announces continued profit growth for the period ended 30th
June 2002. An increase of 12.3% in the interim dividend to 9.10c has been
declared.


Commenting on the results, Paul O'Callaghan, Chief Executive stated: 'We are
pleased with our performance in the first half of the year. All of the Group's
businesses - insurance, financial services, property and hotels/leisure -
contributed to this growth'.


Commenting on the escalating level of claims costs and the consequent impact on
the cost of insurance, Mr O Callaghan said, 'The process of implementing the 10
measures recommended in the Motor Insurance Advisory Board (MIAB) Report,
relating specifically to the Insurance Industry, is well underway. It is now
essential that Government implements the remaining 57 recommendations at the
earliest possible date as insurance premium reductions will ultimately depend on
the national measures taken to reduce the level of claims settlements and
excessive associated costs'. He continued, 'It was disturbing to hear in the
past few days that the new computer system needed to implement in full the
penalty points system will not be operational for at least another year'.

ENDS                                                    28th August 2002

For Reference                                           Telephone

FBD
Paul O'Callaghan,     Chief Executive
Philip Fitzsimons,    Deputy Chief Executive            01 4093200

Murray Consultants
Joe Murray/Geraldine Kearney                            01 498 0300



                                FBD HOLDINGS PLC

                               INTERIM STATEMENT




FBD Holdings plc is pleased to announce excellent results for the half year
ended 30th June 2002.

The Group's insurance, financial services, property and hotel/leisure businesses
combined to increase operating profit to €17.3m. in the period, compared to
€12.9m in 2001. This delivered operating earnings per share of 35.03c, up 39% on
the corresponding period last year. Net assets per share have grown by 4% to
502.5c.


Insurance Underwriting

Group net premiums earned increased by 24.2% to €114.6m. from €92.3m. in the
first half of 2001. The technical insurance result improved from €5.3m. to
€9.0m. The improvement is largely attributable to the variation in MIBI (Motor
Insurers Bureau of Ireland) charges in the comparative period. In 2001, the
charge amounted to €6.5m. compared to €3.5m. in 2002. This significant
difference arose because of adjustments which the MIBI made to its outstanding
claims provisions for uninsured drivers in early 2001. When the MIBI charges are
excluded, the technical result shows a marginal improvement of €0.7m.


FBD welcomes the commitments made in the Programme for Government to implement
the recommendations of the MIAB Report. However, it was disturbing to hear, in
the past few days, that the new computer system needed to implement, in full,
the penalty points system, will not be operational for at least another year.


The early implementation of the measures outlined is essential if insurance
costs are to reduce. This is a crucial issue for the wellbeing of both the Irish
economy and society. FBD is playing its part by proceeding to implement the 10
recommendations that relate specifically to the insurance industry. We look to
the Government to ensure that action is taken on the remaining 57
recommendations.


With the current public focus on the cost of insurance, there appears to be a
lack of awareness or acceptance of where each €100 of premium collected by
insurers goes. The reality in the case of FBD is that of every €100 premium
collected claims costs (including settlements and Legal / other fees) account
for €86, with only €3 retained for solvency purposes. (See Table on page 3)




Financial Services

The Group's other financial services businesses (FBD Brokers, FBD Life &
Pensions, FBD-IFSC) contributed €1.5m. to Group profits. This compares with
€1.9m. to 30th June 2001. The reduction is due to the fall in value of
stockmarket investments held by FBD-IFSC, arising from turbulent world markets
during this period.


Property/Leisure

The Group's property and hotels/leisure division contributed €5.1m. to operating
profit, compared to €3.9m. in the first half of last year. The figures
incorporate FBD's interests in the Sunset and La Cala resorts in Spain and also
reflect the Group's 50% shareholding in the Tower Hotels in Ireland.

Balance Sheet

Ordinary shareholders' funds amounted to €205.8m. at 30th June 2002 compared to
€202m. at 31st December 2001. The downturn in stockmarkets in the period under
review resulted in a negative short-term fluctuation of €3.2m. in the return
from our equity/gilt holdings. This downturn, together with the buy-back of
shares (€3.6m.) in the period, impacted on the growth in net asset value.


Interim Dividend

The Directors have declared an interim dividend of 9.10c, compared to 8.10c in
2001, an increase of 12.3%.


The interim dividend will be paid on 4th October 2002 to shareholders on the
Company's Register at close of business on 6th September 2002. The interim
dividend is subject to withholding tax ('DWT') except for shareholders who are
exempt from DWT and have furnished a properly completed Capital Composite
Resident Form to the Company's Registrar.


Outlook

On the underwriting front, the hardened insurance market should, in due course,
produce improved results for all participants. However, this will ultimately
depend on the measures to reduce the level of claims settlements and excessive
associated costs.


The strong growth in business activity which we achieved throughout the Group in
the first six months of the year is continuing. We are confident of a successful
outcome for Year 2002 and beyond.



FBD DEVELOPMENTS


  • FBD Insurance continues to diversify its customer base, with 70% of new
    business sales in 2002 being obtained in the commercial, urban and
    non-farming sectors. The Company has commenced building a new office in
    Tralee and work will begin shortly on a new premises in Drogheda. Earlier
    this year, FBD established four new regional staff training centres in
    Cavan, Galway, Kilkenny and Mallow to support its commitment to customer
    service.

  • The Los Altos apartments being built at La Cala Resort, Mijas, Spain, are
    nearing completion and sales contracts have been signed for practically all
    of the 60 units. A further development of 30 townhouses will be commencing
    shortly. Work on a third golf course at La Cala is also progressing.


  • The final phase of refurbishment at Sunset Beach Club in Benalmadena,
    Spain, was finished on schedule for the summer season. The work entailed an
    entire upgrade to Four-Star status and incorporated new conference and
    entertainment facilities.


  • The Tower Hotel Group opened its sixth hotel in Derry in May of this year.
    The hotel is sited within the old city walls and is an attractive venue for
    tourists and conferences.


  • Guild Global Securities, an associated company of FBD engaged in
    securities lending, expanded its business significantly since the beginning
    of the year.


  • This year marked the 50th staging of the FBD Milk Ras, which FBD has
    sponsored for the past 19 years.






                                FBD HOLDINGS PLC


                         GROUP PROFIT AND LOSS ACCOUNT

                       FOR HALF YEAR ENDED 30th JUNE 2002
                                                                     Half Year            Half Year                Year
                                                                         Ended                Ended               Ended
                                                                       30/6/02              30/6/01            31/12/01
                                                                   (Unaudited)          (Unaudited)           (Audited)
                                                                        €000's               €000's              €000's

Turnover                                                               172,328              150,995             269,493


Balance on the technical account - general business                      8,957                5,277               9,667

Longer term investment return                                           14,809               15,020              27,878

Allocated investment return transferred to the technical
account - general business                                            (13,239)             (13,330)            (24,755)

Other income                                                             6,855                6,181              17,770

Other charges                                                             (59)                (230)               (376)

Operating profit Note 1                                                 17,323               12,918              30,184

Short term fluctuations in investment return                           (3,205)              (4,496)             (1,502)

Profit before taxation                                                  14,118                8,422              28,682

Taxation                                                               (2,607)              (1,623)             (2,815)

Profit after taxation                                                   11,511                6,799              25,867

Minority interests                                                       (209)                (180)               (323)

Profit after taxation and minority interests                            11,302                6,619              25,544

Dividends                                                              (3,718)              (3,385)             (8,413)

Retained profit                                                          7,584                3,234              17,131

Operating earnings per 60c ordinary share based on longer
term investment return                                                  35.03c               25.19c              59.59c

Earnings per 60c ordinary share                                         27.35c               15.83c              60.47c

Dividend per 60c ordinary share                                          9.10c                8.10c              19.50c

Net assets per 60c ordinary share                                      502.49c              402.55c             483.11c

Note 1 - Operating profit by activity:
Insurance/Reinsurance                                                   10,669                7,176              17,635
Financial Services                                                       1,536                1,891               2,460
Property and Hotels/Leisure                                              5,118                3,851              10,089
                                                                        17,323               12,918              30,184







                                FBD HOLDINGS PLC


                              GROUP BALANCE SHEET

                              AS AT 30th JUNE 2002

                                                                         As at                As at               As at
ASSETS                                                                 30/6/02              30/6/01            31/12/01
                                                                   (Unaudited)          (Unaudited)           (Audited)
                                                                        €000's               €000's              €000's

Investments                                                            815,898              678,402             765,884

Reinsurers' share of technical provisions                               48,022               34,550              37,461

Debtors                                                                 49,632               36,960              35,509

Other assets                                                            17,709                9,026              17,195

Prepayments and accrued income                                          26,261               25,154              21,892

TOTAL ASSETS                                                           957,522              784,092             877,941

LIABILITIES

Technical provisions                                                 (655,755)            (551,028)           (594,957)

Provision for other risks and charges                                 (13,560)              (5,128)            (13,320)

Creditors                                                             (74,519)             (53,163)            (59,821)

NET ASSETS                                                             213,688              174,773             209,843

CAPITAL AND RESERVES

Ordinary share capital                                                  25,125               25,072              25,090

Share premium                                                            5,367                5,215               5,266

Reserves                                                               175,309              137,932             171,667


ORDINARY SHAREHOLDERS' FUNDS                                           205,801              168,219             202,023

Preference share capital                                                 2,923                3,093               2,923

Minority interests                                                       4,964                3,461               4,897

                                                                       213,688              174,773             209,843




                                FBD HOLDINGS PLC

STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

For half year ended 30th June 2002

                                                                    Half Year            Half Year                 Year
                                                                        Ended                Ended                Ended
                                                                      30/6/02              30/6/01             31/12/01
                                                                  (Unaudited)          (Unaudited)            (Audited)
                                                                       €000's               €000's               €000's

Retained profit                                                         7,584                3,234               17,131

Exchange translation adjustment                                         (331)                  191                  274

Total gains relating to period                                          7,253                3,425               17,405

Prior year adjustment                                                       -                    -               20,475

Total gains recognised since end of previous period                     7,253                3,425               37,880



RECONCILIATION OF MOVEMENT IN

ORDINARY SHAREHOLDERS' FUNDS

For half year ended 30th June 2002
                                                                    Half Year            Half Year                 Year
                                                                        Ended                Ended                Ended
                                                                      30/6/02              30/6/01             31/12/01
                                                                  (Unaudited)          (Unaudited)            (Audited)
                                                                       €000's               €000's               €000's

Profit after taxation and minority interests                           11,302                6,619               25,544

Less: preference dividends                                                  -                    -                (282)

Profit attributable to ordinary shareholders                           11,302                6,619               25,262

Dividends                                                             (3,718)              (3,385)              (8,131)

New share capital issued                                                  136                    -                   68

Adjustment on renominalisation of preference share capital                  -                    -                  170

Other recognised (losses)/gains                                         (331)                  191                  274

Repurchase of ordinary shares                                         (3,611)                    -                (889)

                                                                        3,778                3,425               16,754

Ordinary shareholders' funds at beginning of period                   202,023              164,794              164,794
as previously reported

Prior year adjustment                                                       -                    -               20,475

Ordinary shareholders' funds at end of period                         205,801              168,219              202,023




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