Final Results
FBD Holdings PLC
7 March 2000
FBD HOLDINGS PLC
PRELIMINARY ANNOUNCEMENT
RESULTS FOR THE YEAR ENDED 31ST DECEMBER 1999
1999 1998
HIGHLIGHTS - EURO Euro 000's Euro 000's
- Gross premiums
written 179,800 157,006 +14.5%
- Operating profit 20,198 15,992 +26.3%
- Operating earnings
per share 39.08c 31.91c +22.5%
- Dividend per share 15.00c 13.15c +14.1%
1999 1998
IR£000's IR£000's
HIGHLIGHTS - IR£
- Gross premiums
written 141,604 123,652 +14.5%
- Operating profit 15,907 12,595 +26.3%
- Operating earnings
per share 30.78p 25.13p +22.5%
- Dividend per share 11.81346p 10.35673p +14.1%
Commenting on the results, Paul O'Callaghan, Chief Executive,
stated:
'We achieved excellent results during 1999, with Operating Profits
up by 26.3% to Euro 20.2m. (IR£15.9m.). An improved underwriting
result supported by 14.5% growth in gross premiums written,
contributed significantly. We are confident of maintaining and
growing our strong indigenous presence in the Irish insurance
market'.
7th March 2000
For Reference
Telephone No.
FBD
Paul O'Callaghan, Chief Executive
Philip Fitzsimons, Deputy Chief Executive 353 1 409 3200
MURRAY CONSULTANTS
Joe Murray/Geraldine Kearney 353 1 6614666
FBD HOLDINGS PLC
PRELIMINARY ANNOUNCEMENT
FBD Holdings plc is pleased to announce excellent operating
results for the year ended 31st December 1999.
Profit & Loss Account
The Profit & Loss Account for the period has been prepared in
accordance with FRS3 'Reporting Financial Performance: Insurance
Companies' and in accordance with the SORP 'Accounting for
Insurance Business'. (See Accounts Preface Note on page 4).
Results for previous accounting periods have been restated on the
new basis for comparison purposes.
Operating Profits
Operating Profits increased significantly from Euro 16.0m.
(IR£12.6m.) in 1998 to Euro 20.2m. (IR£15.9m.), a rise of 26.3%.
The key feature of the strong profit result was the improvement in
our Technical Insurance Account. Our 1999 Technical Insurance
Result, Euro 6.6m. (IR£5.2m.), is considerably ahead of the
corresponding 1998 figure, Euro 3.8m. (IR£3.0m.). This arises
from a much improved underwriting performance which exceeded
reduced investment returns attributable to the Account. Our
overall underwriting result improved by Euro 4.7m.(IR£3.7m.).
An increase in the property contribution of Euro 5.2m. (IR£4.1m.)
was offset by a decrease of Euro 1.7m. (IR£1.3m.) on our liability
account. This decrease reflects the industry wide trend of
increasing public liability claims costs. Our motor underwriting
results were similar to 1998.
Gross Premiums Written, Euro 180m.(IR£142m.), were up 14.5% on
1998. The increase occurred across all insurance classes,
reflecting new business growth, higher insured values and revised
premium rates in selected risk categories. Our house insurance
portfolio grew substantially in urban areas along with our retail
business account. From a small base in 1998, our Dublin business
also showed strong growth. Net cash flow from operating activities
grew strongly, generating Euro 69m (IR£54m) compared with Euro 39m
(IR£31m) previously.
Other Income less Charges, Euro 9.4m (IR£7.4m.), is up 16.8% on
the previous year's figure. This Income is generated from our
insurance/assurance broking operations, our IFSC activities and
our property investments. Our most recent property investments
in Ireland are in the IFSC, namely Enterprise House, which has
been completed and fully let, and Guild House which is nearing
completion and is substantially pre-let. Our Spanish investments,
Sunset Beach Club and La Cala Resort had a very successful year.
The lower interest rates and lower equity returns that prevailed
in financial markets throughout 1999 resulted in reduced
investment returns of Euro 30.3m. (IR£23.9m.) compared to Euro
32.9m. (IR£25.9m.) in 1998.
The downturn in Irish financial stocks and gilts in 1999 was
offset by the strong operating performance of the Group ensuring
minimal impact on post dividend net asset value. Most of the
substantial 30% gain in net assets achieved in the previous year
was retained and net assets per share at year end were 3.4% lower
at 329.7 cents (259.7p).
Dividend
In keeping with the Board's progressive dividend policy, the
Directors are recommending a final dividend of 8.5c (IR 6.694294p)
per share. It is to be paid on the 28th April 2000 to
Shareholders on the Company's register at close of business on the
17th March 2000. The final dividend is subject to Witholding Tax
(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 6.5c (IR 5.119166p), total
dividends amount to 15.0c (IR11.81346p), an increase of 14.1%.
Outlook
Following recent merger activity in the Irish market, driven by
international consolidations, FBD Insurance is the only
significant Irish owned and controlled insurance company operating
in the domestic market. Over the 30 years of FBD's existence, its
singular focus on meeting customer needs has enabled it to grow
profitably amidst all of the market consolidations that have
occurred over the period. While we continuously review and revise
our plans where necessary, in light of changes in the industry, we
are confident of maintaining and growing the strong and vital
indigenous presence that we represent in the Irish insurance
market.
The Group is pursuing a clearly defined growth strategy and is
investing the necessary resources in infrastructure, staff and
business processes to ensure that we deliver on our objectives.
Customer care is the hallmark of how we do business at FBD Head
Office and throughout our network of 50 local offices. We are
continuing to enhance this network and will open our first Dublin
city centre office later this year. We currently provide a 1850
telephone service, 24 hours a day, 7 days a week and have had a
presence on the Internet for over 12 months. Our E-Commerce
offering is under review at present and we see its further
development as a key element in our continued growth and success.
Each of our businesses have maintained strong trading performances
in the year to date and we are confident that the consistent
growth levels we have achieved over the years will continue in the
future.
PREFACE NOTE TO ACCOUNTS FOR
YEAR ENDED 31ST DECEMBER 1999
The Profit & Loss Account on page 5 is prepared in accordance with FRS3
'Reporting Financial Performance: Insurance Companies', and in
accordance with the SORP 'Accounting for Insurance Business' published
in January 1999.
Accordingly results for prior accounting periods have been restated:
- Unrealised gains/losses on investments are now accounted for
in the Profit & Loss Account.
- Operating Profits are arrived at using a long-term rate of
return on investments.
- Short-term fluctuations are calculated and incorporated as an
adjustment figure in arriving at profit before taxation.
Set out below is a table reconciling profit before taxation as
historically reported and operating profit on the new basis.
Year Year Year Year
Ended Ended Ended Ended
31/12/99 31/12/98 31/12/97 31/12/96
IR£000 IR£000 IR£000 IR£000
Profit before
taxation as
previously
reported. 19,669 16,693 14,250 14,674
Unrealised
(losses)/gains
on investments:
Insurance (26,374) 21,242 9,694 2,902
Non Insurance 1,009 1,155 - -
(Loss)/profit
before taxation
- new basis. (5,696) 39,090 23,944 17,576
Short-term
fluctuation
in investment
return. 21,603 (26,495) (17,310) (6,818)
Operating profit
- new basis. 15,907 12,595 6,634 10,758
Representative bodies of the insurance industry believe that this new
accounting presentation, which reduces the impact of market volatility
on investment returns by including them in Operating Profit on a longer
term basis, gives a more realistic picture of the ongoing operating
performance.
IRISH POUNDS
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31ST DECEMBER 1999
1999 1998
IR£000's IR£000's
Turnover 181,113 166,903
Balance on the
technical account
- general business 5,173 3,012
Investment income 23,914 25,854
Unrealised (losses)
/ gains on investments (26,374) 21,242
Allocated investment
return transferred to
the general business
technical account (15,804) (17,348)
Other income 8,638 8,904
Other charges (1,243) (2,574)
Operating profit 15,907 12,595
Short term fluctuations (21,603) 26,495
in investment return
(Loss)/ profit before
taxation (5,696) 39,090
Taxation 6,115 (7,015)
______ ______
Profit after
taxation 419 32,075
Minority interests (161) (60)
______ ______
Profit after taxation
and minority
interests 258 32,015
Dividends (5,155) (4,505)
______ ______
Retained (loss)/
profit (4,897) 27,510
====== ======
Pence Pence
Operating earnings
per 50p ordinary share
based on longer term
investment return 30.78 25.13
===== ======
Earnings per 50p 0.06 77.22
ordinary share ===== =====
Dividends per 50p
ordinary share 11.81346 10.35673
======== ========
Net assets per 50p
ordinary share 259.7 268.8
===== =====
IRISH POUNDS
GROUP BALANCE SHEET
AS AT 31ST DECEMBER 1999
1999 1998
IR£000's IR£000's
ASSETS
Investments 441,786 432,285
Reinsurers' share of
technical provisions 30,226 44,392
Debtors 21,576 22,785
Other assets 22,525 23,070
Prepayments and
accrued income 12,524 10,770
______ ______
TOTAL ASSETS 528,637 533,302
LIABILITIES
Technical provisions (385,177) (372,719)
Provision for other
risks and charges (6,154) (13,948)
Creditors (24,126) (29,885)
________ _______
NET ASSETS 113,180 116,750
====== =======
CAPITAL AND RESERVES
Ordinary share
capital 20,760 20,697
Share premium 3,746 3,623
Reserves 83,337 86,930
______ ______
ORDINARY SHAREHOLDERS'
FUNDS 107,843 111,250
Preference share
capital 2,436 2,436
Minority interests 2,901 3,064
______ ______
113,180 116,750
======= =======
IRISH POUNDS
GROUP CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST DECEMBER 1999
1999 1998
IR£000's IR£000's
Net cash inflow
from operating
activities 53,968 30,629
Dividends paid (4,805) (4,110)
Corporation tax paid (1,910) (1,843)
Capital expenditure (2,556) (1,971)
Financing (11,812) 1,081
_______ _______
32,885 23,786
======= =======
Cash flows were invested
as follows
(Decrease)/increase
in cash holdings (1,115) 1,804
______ ______
Net portfolio investment
Quoted shares (578) 17,228
Quoted debt 80,800 31,754
securities
Unquoted shares 399 609
Deposits with
banks (67,683) (25,322)
Loans and
advances 4,809 (5,533)
Land and
property 16,287 3,468
Leases (34) (222)
______ ______
34,000 21,982
______ ______
Net investment of
cash flows 32,885 23,786
====== ======
IRISH POUNDS
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
FOR THE YEAR ENDED 31ST DECEMBER 1999
1999 1998
IR£000's IR£000's
Retained (loss)
/ profit (4,897) 27,510
Exchange translation
adjustment 1,304 (1,823)
______ ______
Total (losses)/
gains recognised
in year (3,593) 25,687
====== ======
RECONCILIATION OF MOVEMENT IN
ORDINARY SHAREHOLDERS' FUNDS
FOR THE YEAR ENDED 31ST DECEMBER 1999
1999 1998
IR£000's IR£000's
Profit after taxation
and minority interests 258 32,015
Less: preference
dividends (235) (209)
______ ______
23 31,806
Dividends (4,920) (4,296)
New share capital
issued 186 564
Other recognised
gains/(losses) 1,304 (1,823)
______ ______
(3,407) 26,251
Ordinary shareholders'
funds at beginning
of year 111,250 84,999
______ ______
Ordinary shareholders'
funds at end of year 107,843 111,250
======= =======
IRISH POUNDS
TECHNICAL RESULT BY CLASS OF BUSINESS
YEAR ENDED 31ST DECEMBER 1999
Net Net Net Op
Earned Claims Expenses
Premiums Incurred
IR£000's IR£000's IR£000's
Direct
insurance
Motor 72,978 (73,361) (11,678)
Liability 19,672 (26,170) (3,273)
Fire &
Property 22,299 (12,230) (1,895)
Other 2,280 (1,864) (295)
______ _______ _______
Total
direct 117,229 (113,625) (17,141)
insurance
Reinsurance
acceptances 599 2,633 (326)
______ ______ ______
Total 117,828 (110,992) (17,467)
======= ======= ========
IRISH POUNDS
TECHNICAL RESULT BY CLASS OF BUSINESS
YEAR ENDED 31ST DECEMBER 1999
Underwriting Allocated Technical
Result Inv Result
Income
IR£000's IR£000's IR£000's
Direct
insurance
Motor (12,061) 9,085 (2,976)
Liability (9,771) 4,395 (5,376)
Fire &
Property 8,174 1,210 9,384
Other 121 157 278
______ ______ ______
Total direct
insurance (13,537) 14,847 1,310
Reinsurance
acceptances 2,906 957 3,863
______ ______ _______
Total (10,631) 15,804 5,173
======= ====== ======
YEAR ENDED 31ST DECEMBER 1998
Net Net Net Op
Earned Claims Expenses
Premiums Incurred
IR£000's IR£000's IR£000's
Direct
insurance
Motor 65,744 (67,572) (10,237)
Liability 17,879 (23,451) (2,936)
Fire &
Property 19,735 (13,715) (1,934)
Other 1,950 (1,835) (312)
_____ _______ ______
Total direct
insurance 105,308 (106,573) (15,419)
Reinsurance
acceptances 1,421 932 (5)
______ ______ _______
Total 106,729 (105,641) (15,424)
======= ======== =======
YEAR ENDED 31ST DECEMBER 1998
Underwriting Allocated Technical
Result Inv Result
Income
IR£000's IR£000's IR£000's
Direct
insurance
Motor (12,065) 9,664 (2,401)
Liability (8,508) 4,558 (3,950)
Fire &
Property 4,086 1,305 5,391
Other (197) 159 (38)
______ ______ ______
Total direct
insurance (16,684) 15,686 (998)
Reinsurance
acceptances 2,348 1,662 4,010
______ ______ ______
Total (14,336) 17,348 3,012
===== ===== =====
EUROS
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31ST DECEMBER 1999
1999 1998
Euro 000's Euro 000's
Turnover 229,966 211,923
Balance on the technical
account
- general business 6,568 3,824
Investment income 30,365 32,828
Unrealised (losses)/
gains on investments (33,488) 26,972
Allocated investment
return transferred
to the general
business technical
account (20,067) (22,027)
Other income 10,968 11,306
Other charges (1,578) (3,269)
Operating profit 20,198 15,992
Short term
fluctuations
in investment
return (27,430) 33,642
(Loss)/ profit
before taxation (7,232) 49,634
Taxation 7,764 (8,907)
______ ______
Profit after
taxation 532 40,727
Minority interests (204) (76)
______ ______
Profit after
taxation and
minority interests 328 40,651
Dividends (6,546) (5,720)
______ ______
Retained (loss) / protis (6,218) 34,931
====== ======
Cents Cents
Operating earnings
per 50p ordinary
share based on
longer term investment
return 39.08 31.91
===== =====
Earnings per 50p
ordinary share 0.08 98.05
===== =====
Dividends per 50p
ordinary share 15.00 13.15
===== =====
Net assets per
50p ordinary
share 329.8 341.3
===== =====
EUROS
GROUP BALANCE SHEET
AS AT 31ST DECEMBER 1999
1999 1998
Euro 000's Euro 000's
ASSETS
Investments 560,953 548,889
Reinsurers' share
of technical
provisions 38,379 56,366
Debtors 27,396 28,931
Other assets 28,601 29,293
Prepayments and
accrued income 15,902 13,675
_____ _____
TOTAL ASSETS 671,231 677,154
LIABILITIES
Technical provisions (489,074) (473,256)
Provision for other
risks and charges (7,814) (17,710)
Creditors (30,634) (37,946)
______ ______
NET ASSETS 143,709 148,242
====== =======
CAPITAL AND
RESERVES
Ordinary share
capital 26,360 26,280
Share premium 4,756 4,600
Reserves 105,816 110,378
_______ _______
ORDINARY SHAREHOLDERS'
FUNDS 136,932 141,258
Preference share
capital 3,093 3,093
Minority interests 3,684 3,891
______ ______
143,709 148,242
===== =====
EUROS
GROUP CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST DECEMBER 1999
1999 1998
Euro 000's Euro 000's
Net cash inflow
from operating
activities 68,525 38,890
Dividends paid (6,101) (5,219)
Corporation tax
paid (2,425) (2,340)
Capital expenditure (3,246) (2,502)
Financing (14,998) 1,373
______ _____
41,755 30,202
===== =====
Cash flows were
invested as follows
(Decrease)/increase
in cash holdings (1,416) 2,291
______ ______
Net portfolio
investment
Quoted shares (734) 21,875
Quoted debt
securities 102,595 40,319
Unquoted shares 507 773
Deposits with
banks (85,940) (32,152)
Loans and
advances 6,106 (7,025)
Land and property 20,680 4,403
Leases (43) (282)
______ ______
43,171 27,911
______ ______
Net investment of
cash flows 41,755 30,202
===== =====
EUROS
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
FOR THE YEAR ENDED 31ST DECEMBER 1999
1999 1998
Euro 000's Euro 000's
Retained (loss)
/ profit (6,218) 34,931
Exchange translation
adjustment 1,656 (2,315)
_____ _____
Total (losses)/
gains recognised
in year (4,562) 32,616
===== =====
RECONCILIATION OF MOVEMENT IN
ORDINARY SHAREHOLDERS' FUNDS
FOR THE YEAR ENDED 31ST DECEMBER 1999
1999 1998
Euro 000's Euro 000's
Profit after
taxation and
minority interests 328 40,651
Less: preference
dividends (299) (265)
_____ _____
29 40,386
Dividends (6,247) (5,455)
New share capital
issued 236 715
Other recognised
gains/(losses) 1,656 (2,315)
______ ______
(4,326) 33,331
Ordinary shareholders's
funds at beginning
of year 141,258 107,927
_______ _______
Ordinary shareholders'
funds at end of year 136,932 141,258
====== ======
EUROS
TECHNICAL RESULT BY CLASS OF BUSINESS
YEAR ENDED 31ST DECEMBER 1999
Net Earned Net Claims Net Op
Premiums Incurred Expenses
Euro 000's Euro 000's Euro 000's
Direct
insurance
Motor 92,663 (93,149) (14,828)
Liability 24,978 (33,229) (4,156)
Fire &
Property 28,314 (15,529) (2,406)
Other 2,895 (2,367) (375)
______ ______ ______
Total direct
insurance 148,850 (144,274) (21,765)
Reinsurance
acceptances 761 3,343 (414)
______ ______ ______
Total 149,611 (140,931) (22,179)
====== ======= ======
EUROS
TECHNICAL RESULT BY CLASS OF BUSINESS
YEAR ENDED 31ST DECEMBER 1999
Underwriting Allocated Technical
Result Inv Income Result
Euro 000's Euro 000's Euro 000's
Direct
insurance
Motor (15,314) 11,536 (3,778)
Liability (12,407) 5,581 (6,826)
Fire &
Property 10,379 1,536 11,915
Other 153 199 352
_____ _____ _____
Total direct
insurance (17,189) 18,852 1,663
Reinsurance
acceptances 3,690 1,215 4,905
_____ _____ _____
Total (13,499) 20,067 6,568
===== ===== =====
YEAR ENDED 31ST DECEMBER 1998
Net Earned Net Claims Net Op
Premiums Incurred Expenses
Euro 000's Euro 000's Euro 000's
Direct
insurance
Motor 83,478 (85,798) (12,999)
Liability 22,702 (29,777) (3,728)
Fire &
Property 25,058 (17,415) (2,456)
Other 2,476 (2,330) (396)
______ ______ ______
Total direct
insurance 133,714 (135,320) (19,579)
Reinsurance
acceptances 1,804 1,184 (6)
______ _____ _____
Total 135,518 (134,136) (19,585)
===== ===== =====
YEAR ENDED 31ST DECEMBER 1998
Underwriting Allocated Technical
Result Inv Income Result
Euro 000's Euro 000's Euro 000's
Direct
insurance
Motor (15,319) 12,271 (3,048)
Liability (10,803) 5,787 (5,016)
Fire &
Property 5,187 1,657 6,844
Other (250) 202 (48)
______ _____ _____
Total direct
insurance (21,185) 19,917 (1,268)
Reinsurance
acceptances 2,982 2,110 5,092
_____ _____ _____
Total (18,203) 22,027 3,824
===== ===== =====
Monday, 13th May 2024
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