Premium Reductions

FBD Holdings PLC
13 August 2003

                     FBD INSURANCE ANNOUNCES BROAD RANGE
                            OF PREMIUM REDUCTIONS


Customers of FBD Insurance are to benefit from premium reductions of up to 10%
which were announced today by the Irish owned insurance company. The reductions
apply across a broad spectrum of insurance products, including motor, household,
farming and retail businesses. FBD says that the price changes reflect its
commitment to pass on the benefits of the improved claims environment to its
customers.

Specifically, FBD announced the following premium reductions:

   •Base car insurance premiums for all policyholders will be reduced by a
    further 5%, in addition to the 5% introduced earlier this year. When
    inflation is taken into account, this amounts to a reduction of over 13%
    compared to last year. The move will add to other rate reductions and
    discount options for female drivers introduced earlier this summer, which
    delivered savings of up to 17%.

   •Home insurance and farm property rates are being reduced by 10%.

   •Shops, pubs and other retail outlets will see their property rates fall
    by an average of 7.5%

These significant changes are being implemented immediately and will be
reflected in upcoming renewals for existing customers and in rates being applied
to new customers.

Speaking at the announcement, Mr Martin Moran, Director of Insurance in FBD
said:

'We are pleased to be in a position to pass on these reductions to customers.
They reflect an improved claims environment, particularly for motor and
property. The combined focus by the Industry and Government on the unacceptable
claims culture and awards system has already made an impact on claim frequency
and claim settlement levels which are resulting in better underwriting trends.

'Liability insurance is still a problem but is showing some signs of
improvement. If these improvements come through to the bottom line, we will
ensure our customers see the benefits in reduced premiums'.

He added that customers have good grounds to be confident of further reductions
in insurance premiums in the months and years ahead. He warned, however, that
all relevant parties, and the Government in particular, need to 'keep their foot
on the pedal, especially in relation to legislation currently in the pipeline.'

FBD complimented the work of the Oireachtas Joint Committee on Enterprise and
Small Business and their recent Interim Report. Mr Moran said he hoped that the
momentum to ensure delivery of necessary reforms, which the Committee had
clearly identified, will be maintained.

FBD is the largest of the few remaining Irish owned insurance companies in this
market. It operates on a very cost effective base through its fifty offices
around the country.



Ends         August 13th 2003


For Reference:                          Telephone No.

Philip Fitzsimons, Chief Executive      409 3200

Martin Moran, Director - Insurance      409 3200


Murray Consultants

Geraldine Kearney                       498 0300




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