Final Results

FBD Holdings PLC
03 March 2004


                                FBD HOLDINGS PLC
                            PRELIMINARY ANNOUNCEMENT
                 RESULTS FOR THE YEAR ENDED 31ST DECEMBER 2003

                                                  2003           2002
HIGHLIGHTS                                      €000's         €000's

   •Turnover                                   500,494        421,612

   •Operating profit                           110,456         37,531

                                                  cent           cent

   •Operating earnings per share                227.38          75.34

   •Dividend per share                           27.60          22.00

   •Net assets per share                        701.94         510.13


Commenting on the results, Philip Fitzsimons, Chief Executive, stated:

'2003 was a very good year for FBD shareholders and FBD customers. The
underwriting loss trend of previous years was reversed and the turnaround to
profit enabled significant premium reductions to be given to a wide range of
policyholders. This will result in annual savings in excess of €30m for
customers. The indications are that the underwriting experience will continue to
be favourable and consequently customers can anticipate further premium savings.
In this regard, it is essential that all interested parties maintain momentum in
implementing the claims reform agenda. We are confident of maintaining business
growth patterns in this year and in the future.'

ENDS                                                      3rd March 2004

For Reference
                                                     Telephone No.

FBD
Philip Fitzsimons, Chief Executive                   353 1 409 3200


MURRAY CONSULTANTS
Joe Murray / Donnchadh O'Neill                       353 1 498 0300
                                


                                FBD HOLDINGS PLC

FBD Holdings plc is pleased to announce excellent results for the year ended
31st December 2003.

Operating profit amounted to €110.5m. compared to €37.5m. for 2002, resulting in
operating earnings per share of 227.38 cent (2002: 75.34 cent). Net assets per
share increased to 701.94 cent from 510.13 cent.

The Board is recommending a final dividend of 17 cent, giving a total dividend
for the year of 27.60 cent.

All of the Group's business divisions, namely, insurance underwriting, financial
services and property/leisure, delivered improved performances in 2003, with FBD
Insurance producing particularly strong results in the period.

Insurance Underwriting
----------------------
FBD Insurance operating profit grew to €93.7m. (2002: €25.3m.). This result is
attributable to the considerable improvement in underwriting performance which
recorded a turnaround from losses of €5.3m. in 2002 to a profit of €59.3m. in
2003. This turnaround was achieved across motor, liability and property classes
of business and is most welcome against a background of underwriting losses in
the previous years.

Two elements combined to deliver the underwriting figures; growth in net earned
premiums from €240.3m to €290.3m. and a fall in claims incurred from €220.5m. to
€194.1m.

Earned premium growth reflected the buoyant sales achieved in 2002 (up 31 per
cent), which boosted 2003 earned premium in all business classes.

The fall in claims incurred was driven primarily by improvements in both Motor
and Liability. The positive underwriting result of €32m in 2003, contrasts with
accumulated losses of €140m experienced over the previous five years.

The reduction in claim costs reflects a fall in both the incidence of personal
injury claims and, also, the lower than anticipated settlement and award levels
that have emerged over the past 12/18 months in motor and liability claims.
Consequently, savings were achieved on pre-2003 claim provisions, in addition to
an improvement in the current year's claims experience. Property insurance
benefited from the benign weather experienced in 2003. The improved claims
environment has been brought about by the reform measures which the Insurance
Industry, Government, business and consumers have been pursuing. The end result
of this concerted effort to eradicate Ireland's hitherto rampant claims culture
is evidenced in the underwriting outcome.

Gross written premium in 2003 amounted to €368.6m., an increase of 13.1 per
cent. This premium growth is entirely attributable to new policies written,
which more than offset the premium reductions which had been implemented across
a wide range of covers in the course of the year. Compared to a year ago,
average premium reductions of 12 per cent in car insurance, and 10 per cent
upwards on farm, rural and urban house insurance, shops and pubs have been
implemented on foot of the improved underwriting situation.

The growth in policy numbers reflects successful expansion in the SME sector in
city, urban and rural areas, as well as in the home insurance and motor markets.


Property & Leisure
-------------------
Operating profits in the Group's property and hotel/leisure division amounted to
€12.6m. (€8.9m.). The completion and sales of the Los Altos apartments
development at La Cala Resort in Mijas, Spain, boosted the profit in this
division. The other main contributors to profit were La Cala's golf activities,
Sunset Beach Club in Spain and the Tower Hotel Group in Ireland. Their
performance was satisfactory in a year that was particularly challenging for the
tourism and leisure sectors at home and abroad.


Financial Services
-------------------
FBD Brokers, Abbey Finance, FBD Securities, FBD Life and FBD IFSC performed to
expectations, contributing operating profits of €4.2m. (€3.3m.).


Balance Sheet
-------------
Total assets at year end amounted to €1,250m. (€1,087.8m). Ordinary
shareholders' funds amounted to €290m. (€209m). Short term fluctuations in
investment returns had a negative impact of €5.9m. This was largely attributable
to a shortfall in the return on Government Bonds in highly volatile market
conditions.


Dividend
--------
The excellent results enable the Company to maintain its dividend growth policy
and, accordingly, the Board is recommending a final dividend of 17.0 cent per
share. It will be paid on 30th April 2004 to shareholders on the Company's
Register at the close of business on 12th March 2004. The final dividend is
subject to withholding tax (DWT) except for shareholders who are exempt from DWT
and have furnished a properly completed Composite Resident Form to the Company's
Register.

Together with the interim dividend of 10.6 cent, the total dividend per share
amounts to 27.6 cent, an increase of 25.5 per cent.


Prospects/Outlook
-----------------
We are confident that we will maintain good growth momentum in all of our
business activities this year and in the years ahead. We are on course to
achieve our targets and objectives.

The Insurance Sector in Ireland has received unprecedented attention over the
past couple of years and, in that time, the insurance environment has altered
considerably. The legislative, safety and law enforcement measures that have
already been, or are currently in the process of being put in place, have
yielded benefits for policyholders and insurers alike. Further advancement of
the reform agenda can deliver additional premium savings for business and
personal customers and simultaneously reward shareholders with adequate returns
on capital. It is widely accepted that the emergence of a stable, sustainable,
insurance underwriting environment is essential for economic wellbeing. FBD
believes that this is achievable and that the Group is well positioned to
benefit from it.

Against this background, FBD Insurance is engaged in ongoing analysis of
underwriting trends and anticipates implementing further premium reductions in
areas of business where they are warranted. As already noted, the 2003 results
gained from notable savings on prior year claims settlements. We do not
expect these savings to be repeated to the same extent in 2004 and beyond. Much
will depend on the impact which the new Personal Injuries Assessment Board will
have. In light of the changed insurance landscape, FBD's focus for premium
growth will be increasingly based on growing customer numbers. In this regard,
we are pursuing growth plans nationwide and, in particular, we are accelerating
our development plans in the Dublin insurance market.

In addition to our insurance underwriting activities, development of our
financial service businesses and our property/leisure investments are being
advanced apace. We are confident regarding the ongoing earnings value of these
interests.

                                                                            ENDS

FBD Update
----------

Insurance
---------

   •FBD Insurance continues to expand its policyholder base, targeting:-

      *  Small, medium size businesses in city, urban and rural areas
      *  The home insurance and motor market.

    In 2003, commercial business represented 51 per cent of premium income, with
    agri-related business and home insurance representing 36 per cent and 13 per
    cent respectively.

   •Plans to increase our presence in the Dublin market are being pursued,
    with first phase recruitment of 15 additional customer service executives
    and support staff underway.

   •FBD is a direct-sell Company with a nationwide network extending to 50
    branches. In the past 12 months, FBD Insurance relocated to new offices in
    Tralee and Drogheda and Waterford.


Property/Leisure
----------------

   •Building work on Tower Hotel Group's latest development, The Castleknock
    Hotel & Country Club, is on schedule for completion by year end. This 140
    bedroom 4 Star Hotel, with extensive conference and leisure facilities, will
    be the seventh hotel in the Group.

   •At La Cala Resort, on Costa del Sol, the Colinas del Golf - 32 unit villa
    and town house development will be completed by year end and sale of the
    units has commenced. Building of a new apartment complex, Real Alta Vista,
    is also underway. The 9 units in the complex will have a total of 108 - 2
    and 3 bedroom apartments. Additional villa plots are also now being offered
    for sale.


                         GROUP PROFIT AND LOSS ACCOUNT
                     FOR THE YEAR ENDED 31ST DECEMBER 2003
                                                           2003       2002
                                                         €000's     €000's

    Turnover                                            500,494    421,612
                                                        =======    =======

    Balance on the technical account
    - general business         Note 1                    88,815     22,015

    Longer term investment return                        33,797     30,293

    Allocated investment return transferred to the
    general business technical account                  (29,488)   (27,281)
    
    Other income                                         18,970     12,667

    Other charges                                        (1,638)      (163)
                                                         --------   --------

    Operating profit            Note 2                   110,456     37,531

    Short term fluctuations in investment return         (5,905)   (12,356)
                                                         --------   --------

    Profit before taxation                              104,551     25,175

    Taxation                                            (12,374)    (4,206)
                                                         --------   --------

    Profit after taxation                                92,177     20,969

    Minority interests                                     (846)      (627)
                                                         --------   --------

    Profit after taxation and minority interests         91,331     20,342

    Dividends                                           (11,683)    (9,243)
                                                         --------   --------

    Retained profit                                      79,648     11,099
                                                         ========   ========

                                                           cent       cent
    Operating earnings per 60c ordinary share based on
    longer term investment return                        227.38      75.34
                                                        ========   ========

    Earnings per 60c ordinary share                      221.17      48.76
                                                         ========   ========

    Dividend per 60c ordinary share                       27.60      22.00
                                                         ========   ========

    Net assets per 60c ordinary share                    701.94     510.13
                                                         ========   ========

                              GROUP BALANCE SHEET
                            AS AT 31ST DECEMBER 2003
                                                           2003           2002
                                                           €000's         €000's
        ASSETS

        Investments                                   1,104,585        938,688

        Reinsurers' share of technical provisions        66,773         67,204

        Debtors                                          45,734         41,790

        Other assets                                     19,109         20,973

        Prepayments and accrued income                   14,000         19,153
                                                        ---------      --------

        TOTAL ASSETS                                  1,250,201      1,087,808

        LIABILITIES

        Technical provisions                           (813,710)      (736,083)

        Provision for other risks and charges           (13,479)       (11,671)

        Creditors                                      (115,047)      (113,695)
                                                        ---------      ---------

        NET ASSETS                                      307,965        226,359
                                                        =========      =========

        CAPITAL AND RESERVES

        Ordinary share capital                           25,125         25,125

        Share premium                                     5,367          5,367

        Reserves                                        259,473        178,436
                                                        ---------      ---------

        ORDINARY SHAREHOLDERS' FUNDS                    289,965        208,928

        Preference share capital                          2,923          2,923

        Minority interests                               15,077         14,508
                                                        ---------      ---------

                                                        307,965        226,359
                                                        =========      =========



                           GROUP CASH FLOW STATEMENT
                     FOR THE YEAR ENDED 31ST DECEMBER 2003

                                                        2003          2002
                                                      €000's        €000's

    Net cash inflow from operating activities        160,355       167,139

    Dividends paid                                    (9,944)       (8,704)
    Corporation tax paid                              (9,377)       (6,148)
    Capital expenditure                               (2,536)       (1,814)
    Financing                                         11,666        (3,129)
                                                     ---------      --------
                                                     150,164       147,344
                                                     =========      ========

    Cash flows were invested as follows
    Increase (decrease) in cash holdings               1,329        (3,860)
                                                     ---------      --------

    Acquisition of subsidiary                              -         9,000
                                                     ---------      --------

    Net portfolio investment

    Quoted shares                                     48,169        27,643
    Quoted debt securities                           (30,835)     (207,331)
    Unquoted shares                                     (516)        2,565
    Deposits with banks                              139,022       270,536
    Loans and advances                               (14,206)       32,889
    Land and property                                  7,201        15,902
                                                     ---------      --------
                                                     148,835       142,204
                                                     ---------      --------

    Net investment of cash flows                     150,164       147,344
                                                     =========      ========





                 STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
                     FOR THE YEAR ENDED 31ST DECEMBER 2003


                                                          2003        2002
                                                          €000's      €000's

    Profit after taxation and minority interests        91,331      20,342
    Exchange translation adjustment                         (4)       (717)
                                                       ---------    --------

    Total recognised gains relating to the year         91,327      19,625
                                                       =========    ========





                         RECONCILIATION OF MOVEMENT IN
                          ORDINARY SHAREHOLDERS' FUNDS
                     FOR THE YEAR ENDED 31ST DECEMBER 2003


                                                           2003       2002
                                                           €000's     €000's

    Profit after taxation and minority interests         91,331     20,342
    Less: preference dividends                             (282)      (282)
                                                         --------   --------
                                                         91,049     20,060
    Dividends                                           (11,401)    (8,961)
    New share capital issued                                  -        136
    Other recognised losses                                  (4)      (717)
    Re-issue (repurchase) of ordinary shares              1,393     (3,613)
                                                         --------   --------
    Net addition to shareholders' funds                  81,037      6,905

    Ordinary shareholders' funds at beginning of year   208,928    202,023
                                                         --------   --------
    Ordinary shareholders' funds at end of year         289,965    208,928
                                                         ========   ========



    Note 1- Technical result by class of business

                         YEAR ENDED 31ST DECEMBER 2003
                  
             Gross Written   Net Earned    Net Claims      Net Op    Underwriting     Allocated    Technical
                 Premiums      Premiums      Incurred    Expenses          Result    Inv Income       Result
                   €000's        €000's        €000's      €000's          €000's        €000's       €000's
Direct
insurance

Motor             180,074       166,024      (119,547)    (24,442)         22,035        18,074       40,109

Liability          80,842        71,147       (48,937)    (11,794)         10,416         9,094       19,510

Fire &
Property          103,349        49,534       (23,347)       (214)         25,973         2,123       28,096

Other               4,354         3,615        (2,296)       (416)            903           197        1,100
                  ---------      --------      --------     -------        --------      --------      -------

                  368,619       290,320      (194,127)    (36,866)         59,327        29,488       88,815
                  =========      ========      ========     =======        ========      ========      =======

                         YEAR ENDED 31ST DECEMBER 2002
                  
             Gross Written   Net Earned    Net Claims      Net Op    Underwriting     Allocated    Technical
                 Premiums      Premiums      Incurred    Expenses          Result    Inv Income       Result
                   €000's        €000's        €000's      €000's          €000's        €000's       €000's
Direct
insurance

Motor             165,747       144,041      (136,060)    (18,154)        (10,173)       17,040        6,867

Liability          67,067        53,456       (59,202)     (8,111)        (13,857)        8,121       (5,736)

Fire &
Property           88,780        39,273       (22,729)      1,592          18,136         1,920       20,056

Other               4,215         3,555        (2,542)       (385)            628           200          828
                  ---------      --------      --------     -------        --------      --------      -------

                  325,809       240,325      (220,533)    (25,058)         (5,266)       27,281       22,015
                  =========      ========      ========     =======        ========      ========      =======


                                               2003                       2002
                                               €000's                   €000's
         Note 2 - Operating profit by activity             
         -----------------------------------------

         Insurance underwriting              93,698                     25,340

         Financial services                   4,186                      3,258

         Property and leisure                12,572                      8,933
                                             --------                    -------
                                            110,456                     37,531
                                             ========                    =======




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