Chairman's Address

FBD Holdings PLC
22 May 2007

At the Annual General Meeting of FBD Holdings plc being held in Dublin at 12
noon today, 22nd May 2007,  the Chairman will make the following Address.



                               CHAIRMAN'S ADDRESS





As I have stated in our Annual Report, FBD Holdings plc delivered another
outstanding performance in the year under review.



A key measure of this performance is the net earnings figure of €246.8m for the
period.   These earnings resulted from the strong operating performance, the
land sale at La Cala  in Spain and the significant returns on our investment
portfolio.



Shareholders' funds increased to €497.5m, after repatriations to shareholders
totalling €207.0m, consisting of €77.8m in dividends and €129.2m in a share
buyback.



Based on the excellent results and in keeping with our stated policy to increase
the dividend payout ratio, the Board is recommending a final dividend of 45.0c
per ordinary share, bringing the total dividend for the year to 69.0c.  This
represents a 20% increase on the 2005 figure, which itself  was an increase of
43.75% over 2004.











In addition to the ordinary dividend just mentioned, on 17th April 2007 last the
Board announced its decision to distribute a further €177 million of reserves to
shareholders, subject to shareholder approval at a forthcoming EGM,  scheduled
for 31st May.   We estimate that this will impact 2007 operating EPS by
approximately 12 cent per share.  The distribution will be made on 27th June to
shareholders on the register on 8th June 2007.   The decision to distribute was
taken following the Board's assessment of the capital required by the Group to
deliver its ambitious development plans;  and,  the mode of repatriation was
determined by the Board after due deliberation as to the option it believes is
in the best interests of shareholders.   The decision to return capital deemed
surplus to requirements is further evidence of the Group's disciplined capital
management and will enhance the return on equity for shareholders.   In
mentioning returns to shareholders, I would remind you that the average total
shareholder returns  per annum over the last  5 years were 52%,  an outstanding
performance by any measure.



You will have received your documentation for the EGM and I urge you to complete
and return your proxy form to the Registrar, if you are not attending, no later
than Tuesday  morning, 29th May 2007.











UNDERWRITING

As in  previous years, the performance of FBD Insurance, our primary business,
underpinned the Group's results.   I am pleased to report that in a highly
competitive market we succeeded in growing our market share and are now
Ireland's fourth largest general insurer.   We have achieved this position
through organic growth based on sustainable development of our customer focused,
direct sell, business model.



It is widely recognised that insurers and policyholders have benefited from the
positive insurance environment that has pertained in Ireland in recent years.
It is equally important to recognise that the key element that has made this
possible is the reduction in accident claim costs that has occurred, relative to
what they were a few short years ago.   The  heartening reality is that accident
frequency and average claim costs have reduced.   The factors that have brought
about the improved situation are well known;  the reduction in fraudulent
claims, the road safety and law enforcement measures that have been implemented,
and the reduction in legal costs arising from the establishment of the Personal
Injuries Assessment Board (PIAB).   If further savings in claim costs are to be
achieved, it is essential that progress on all these fronts is sustained.
Concerted efforts by some lawyers to thwart the PIAB in its objectives continue.
   The government must remain firm in its support for PIAB and ensure that any
legislative changes that are necessary to underpin its capacity to deliver on
the  purposes for which it was established,  are implemented.



NON-UNDERWRITING

You are all aware that the Group's non-underwriting interests encompass leisure/
property development, financial services and the investment of non-allocated
capital.   As our results show, these activities reported satisfactory outcomes
in 2006.



In relation to our property business, I wish to refer to the disposal of the
major portion of the development land owned by the Group at La Cala Resort in
Spain.  This land sale was agreed in February of last year and effected in June.
   The net profit arising from the transaction, when finally concluded, is
estimated to be €90m.   The Board decided when entering into the transaction
that the entire net proceeds of the sale would be distributed to shareholders.
Accordingly, a special dividend, amounting to €55m, was paid in August 2006 in
respect of the Tranche I land.  Payment by the purchaser for the second Tranche
of land is due on final approval being granted by the Regional Planning
Authority.   Whilst we had initially expected an earlier outcome, due to delays
being experienced in this final approval process, we are of the view that it is
unlikely to be received  before year end.   A distribution of the remaining net
sale proceeds, estimated at €65m, will be made when payment of the final monies,
triggered by the planning approval, is received.   The land disposal evidences
the ongoing commercial assessment the Group undertakes in relation to all its
businesses and the focus it maintains on optimising shareholder returns.





CORPORATE

On the corporate front, a significant change in the Group's shareholding
structure occurred in 2006 when Farmer Business Developments plc placed 4.5m
shares (i.e. 12% of FBD Holdings plc's issued capital at that time) on the
market in June.   As stated earlier, the Group bought, and subsequently
cancelled, 3.8m. of these shares and the remainder were purchased by other
investors.   This transaction resulted in the shares' free float moving to 67%
and Farmer Business Developments'  shareholding reducing to 24.4%, thereby
increasing share liquidity.   I welcome the new investors who have joined the
Company and acknowledge your confidence in us.



OUTLOOK

As the results have reflected, 2006 was a year in which the growth momentum that
the Group established over the years was maintained.   This is borne out across
all our businesses by the increase in customer numbers, the new markets that
have been sourced and the organisational and infrastructural developments that
have been implemented to underpin our progress.   These latter developments,
including the establishment of our Business Support Centre in Mullingar, Co.
Westmeath, which opened in February of this year, ensure that our platform for
success continues to be strengthened.

                                               Outlook continued overleaf.......





As regards the current year, I am pleased to report that we have continued to
make solid progress to date.  We are vigorously pursuing our strategies for
growth and, albeit that price competition remains intense across all our areas
of business, I am confident that the progress we have made will be built on and
that we will fulfil our full year earnings expectations.





CONCLUSION

In conclusion, I extend my sincere thanks to the Board, Management and Staff for
their efforts and dedication in, once again, delivering an outstanding
performance for the Group.   By maintaining our focus on maximising benefits for
all our stakeholders, I am confident that FBD is very well positioned to
continue developing successfully.










This announcement has been issued through the Companies Announcement Service of



                            The Irish Stock Exchange








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