FBD Group FBD Group FBD Group FBD Group

FINANCIAL PERFORMANCE

Half Year Results 2020

Paul D'Alton, Interim Group Chief Executive

"These are a robust set of results in very difficult circumstances for our customers and employees. Our profitability excluding the business interruption costs and capital position remain strong and we continue to invest in our business for the future.

We have introduced a number of measures to assist our customers through the Covid-19 pandemic including premium rebates, suspension of cover reductions and payment flexibility where required. We have also assisted customers with a wide range of supports reflecting the changed environment for individuals and businesses. We are grateful to our loyal customers for their continued support. "

Key Performance Stats

For the Year Ended 31st December 2020

5mProfit Before
Tax

Compared with €112m profit for 2019

101% Combined Operating
Ratio

Increase compared with 72% equivalent figure for 2019 as a result of BI claims provision

358m Gross Written
Premium

Excluding €12m in rebates GWP is in line with €370m written in 2019

1% Return on
Equity

Compared with 30% ROE for 2019

1095c Net Asset Value
per share

Increase compared to 1,068c equivalent figure for 2019

"From an operational perspective our business continuity plans continue to work very well. Service to customers has been maintained and in FBD it has been business as usual. The vast majority of our employees have worked remotely since late March and we are now commencing a slow process of returning to the office. As part of this process our branches reopened to customers on 29th June.

We have experienced a lot of publicity in recent months regarding business interruption claims by customers. We acknowledge the disappointment and frustration of affected businesses that their Business Interruption insurance does not respond to cover pandemics. However, we are unable to provide cover for what we believe to be, and are advised is, an uninsured risk not covered by our policies. We have a duty to all of our customers to settle claims consistently with the coverage provided so that we can continue to offer products at affordable pricing levels and pay valid claims. Proceedings will be brought, by way of test case, which is now scheduled for hearing in the Commercial Court in October 2020. We believe that this is the quickest and most efficient way of achieving clarity for our customers.

Until clarity emerges in relation to Business Interruption Insurance we expect a period of uncertainty for FBD. However, we remain confident in the underlying profitability, future growth prospects, capital strength of the business and in our ability to continue to provide excellent service to our customers."

Paul D'Alton

"These are a robust set of results in very difficult circumstances for our customers and employees. Our profitability excluding the business interruption costs and capital position remain strong and we continue to invest in our business for the future. "

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Half Year Results up to 30th June 2020

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