Interim Results

FBD Holdings PLC
27 August 2003



                          INTERIM RESULTS ANNOUNCEMENT

                       For half year ended 30th June 2003

                                                   2003          2002 
FINANCIAL HIGHLIGHTS                             €000's        €000's


   •Turnover                                    217,540       172,328
   •Net earned premium                          141,194       114,641
   •Operating profit                             61,767        17,323

                                                   Cent          Cent
   •Operating earnings per share                 126.18         35.03
   •Dividend per share                            10.60          9.10

FBD Holdings plc, announces continued profit growth for the period ended 30th
June 2003. An increase of 16.5% in the interim dividend has been declared.

Commenting on the interim results, Philip Fitzsimons, Chief Executive said;

'Turnover at the Group increased by over 26% for the first six months while
operating profit was €61.8m compared to €17.3m for the same period last year.
Each of the Group's business divisions - Insurance Underwriting, Financial
Services and Property/Leisure contributed to this performance.'

'In relation to the underwriting outcome for the Insurance company, the positive
sales figures so far in 2003, allied to the strong growth in sales in 2002
(31%), supported by FBD's ongoing expansion into urban and commercial markets,
has resulted in a significant increase in earned premium in the period under
review. This premium growth combined with substantial savings in pre 2003 injury
claims in particular, plus a fall in accident frequency in the current year,
resulted in a turnaround in the underwriting result (from a loss of €4.3m in the
first half of 2002 to a profit of €32.2m in this period). It is a most welcome
result against a background of underwriting losses of almost €94m on the motor
account over the previous five years. In light of the improving underwriting
climate, FBD implemented reductions of 10% on car and home insurance premiums
and 7.5% on property rates for shops, pubs and other retail outlets in recent
months. FBD continues to monitor claims trends and if the current improved
environment is maintained, further reductions in premiums are anticipated.'

'The ongoing positive performance of our Property / Leisure businesses is most
satisfactory, particularly in light of current market challenges in the Hotels
industry, as is the increased contribution from our Financial Services
businesses.'

ENDS          27th August 2003


For Reference
                                        Telephone
FBD
Philip Fitzsimons, Chief Executive       01 4093200
Murray Consultants
Joe Murray/Geraldine Kearney             01 4980300




                                FBD HOLDINGS PLC

                               INTERIM STATEMENT



FBD Holdings plc is pleased to announce excellent results for the half year
ended 30th June 2003.

Group operating profit increased significantly to €61.8m., compared to €17.3m.
in the half year 2002. Each of the Group's business divisions - Insurance
Underwriting, Financial Services and Property/Leisure - contributed to this
performance.

The resultant operating earnings per share amounts to 126.18 cent (35.03 cent,
June 2002). Net assets per share grew to 615.87 cent from 510.13 cent at 31st
December 2002.

Insurance Underwriting

FBD Insurance gross premium written in the half year to 30th June 2003 amounted
to €177.8m. (€154.1m). Insurance operating profit increased to €48.7m.
(€10.7m.). The major reason for this increased profitability was the improvement
in the technical insurance result, €46.8m. compared to €9.0m last year.
Investment income accounted for €14.6m. (€13.2m) of the technical insurance
result.

The technical result reflects the improvement in underwriting performance in all
classes of business, particularly in motor and property. The underwriting result
is most welcome particularly in light of the fact that FBD sustained losses of
almost €94m on its motor account over the previous five years. The underwriting
results overall show a turnaround from a loss of €4.3m in first half of 2002 to
a profit of €32.2m in the first half of 2003. This turnaround is attributable to
two key factors; firstly, the growth in earned premium, from €114.6m. to
€141.2m. and secondly, the reduction in claims incurred from €106.6m. to €93.7m.
The growth in premium arises from the positive sales performance in 2003,
combined with the very strong sales growth in 2002 (31%), with the latter sales
coming through as earned income in the current period. This reflects the ongoing
success of FBD Insurance in penetrating the urban and commercial markets. In
relation to claims, and specifically personal injury claims, the charge to the
Profit & Loss Account reflects considerable savings that have emerged on pre
2003 claims, in particular. These savings are a direct consequence of the lower
level of claims settlements being experienced since the end of last year. It
also coincides with a fall in injury accident frequencies in the current year.
Whilst these claim trends are most noticeable in our motor portfolio, similar
trends are emerging in our employers' liability and public liability accounts.
The latter have proven to be difficult historically with accumulated
underwriting losses of over €53m in the last five years but we are hopeful that
the improvements that are occurring will continue. In relation to property
insurance, the favourable weather conditions in the year to date have benefited
the account.

Property & Leisure

This division, which embraces the Group's interests in the Tower Hotel Group in
Ireland and La Cala Resort and Sunset Beach Hotel in Spain, reported a doubling
of operating profits (€10.2m. compared to €5.1m. in the corresponding period
last year). The increase is due, in the main, to profits on the sale of the Los
Altos apartments at La Cala, Spain.

The overall performance of this division is satisfactory in what have been
volatile times for the Hotels industry in particular, both in Ireland and Spain,
due to world-wide political and economic uncertainty.




Financial Services

Our Financial Services Businesses - which include general and life insurance
brokerages - all performed well in the first half. These and other fee earning
financial services activities reported increased operating profits, doubling
from €1.5m. to €2.9m. in the period.

Balance Sheet

Ordinary shareholders' funds increased by €45.5m. to €254.4m. during the period.
This increase was achieved despite a fall in the value of the Group's fixed
interest investments at the end of the period as a result of rising yields. This
is reflected in the negative short-term fluctuation of €6.4m. in the Profit &
Loss Account.

Interim Dividend

The Directors have decided to increase the interim dividend to 10.6 cent,
compared to 9.1 cent in 2002, an increase of 16.5%.

The interim dividend will be paid on 3rd October 2003 to shareholders on the
Company Register at close of business on 5th September 2003. The interim
dividend is subject to withholding tax (DWT), except for shareholders who are
exempt from DWT and have furnished a properly completed Capital Composite
Resident Form to the Company's Registrar.



Outlook

The outlook for the Group for the remainder of 2003 and beyond is very
encouraging.

On the insurance front, it is evident that the determination of insurers,
Government and customers to tackle the fundamental problems that have for so
long bedevilled the industry has begun to deliver returns. We welcome the
commitment of the Oireachtas Joint Committee on Enterprise and Small Business to
act as a watchdog to see that critical initiatives in the areas of legislation,
fraud elimination and accident prevention are implemented, early and
effectively. The establishment of the Personal Injuries Assessment Board (PIAB)
and the introduction of a book of quantum, which would establish injury awards
at levels that enable premiums to be reduced still further, are essential to
advancing the agenda. It is also essential that the remit of the PIAB be
extended at the earliest possible date to embrace not only employers' liability
injury claims but also public liability and motor.

Last March, FBD signalled its determination to respond, by way of premium
reductions, to the improving claims environment if the favourable trends were
maintained. The Company is pleased to report that it has already delivered on
this promise with reductions, to date, totalling 10% in base car and house
insurance premiums, and 7.5% in retail property rates.

The process of monitoring and analysing claim trends is ongoing and FBD's
premium pricing will be responsive, as it always has, to its underwriting
experience. It is by reference to this that long term sustainable value can be
delivered to customers and shareholders alike. If the current favourable claim
trends are maintained, further premium reductions will be forthcoming. Against
this background FBD Insurance will continue to pursue its ambitious growth
targets while maintaining its current cost efficient structure, which delivers
one of the lowest cost to income ratios in the Irish Insurance Industry.

The Group is optimistic that the progress achieved in its other financial
services activities in the year to date will be maintained.

On the Property and Leisure side, the Group is committed to furthering its
development plans in the months ahead. FBD continues its investment programme in
the Tower Hotel Group (75% owned by FBD) and in its Spanish interests.

Earlier this year the Tower Group announced plans to build a new 4 Star Hotel
and Country Club in Castleknock, County Dublin. This is a joint venture with
Monarch Properties Ltd, who will develop an 18-hole championship golf course to
complement the hotel. The hotel is scheduled for completion in December 2004.

At La Cala, Mijas, Spain, the building of 32 villas and townhouses is well
underway. Known as Colinas del Golf, the development will prove attractive to
owners seeking top quality golf front residences. Also at La Cala, work on the
new third golf course is well advanced and the target date for opening the
course is Spring 2005.

The progress achieved in the first half year augurs well for the future.

ENDS




FBD DEVELOPMENTS



   •FBD Insurance relocated to purpose built offices in Tralee earlier this
    year and will complete a similar move in Drogheda before year-end. A number
    of additional new locations are currently being considered for FBD Offices.

   •Roll out of a comprehensive on-line computerisation programme for all of
    FBD's 50 local offices has been completed and further initiatives to
    maximise the opportunities for improved customer service and additional
    efficiencies, presented by this investment, are well advanced.

   •FBD continues to cater for its large base of farming business while at
    the same time expanding its presence in the small to medium businesses and
    retail sectors. Large urban areas are a key target for continued growth
    along with Dublin where FBD now has a firm base of business. The house
    insurance market is also targeted for growth.

   •FBD Brokers, who are the largest insurance providers to the food and
    dairy processing sectors, continue to grow their base of corporate customers
    in medium to large manufacturing, wholesale and distribution businesses.

   •FBD Life & Pensions continues to grow as an independent advisor to a
    broad spectrum of individuals and businesses, with a network of financial
    advisors strategically located around the country, assisting customers in
    making key decisions in relation to investments, pensions, protection and
    mortgages.



                                FBD HOLDINGS PLC
                         GROUP PROFIT AND LOSS ACCOUNT
                       For half year ended 30th June 2003



                                 Half Year      Half Year         Year
                                     Ended          Ended        Ended
                                   30/6/03        30/6/02     31/12/02
                               (Unaudited)    (Unaudited)    (Audited)
                                    €000's         €000's       €000's

Turnover                           217,540        172,328      421,612
                                   =========      =========     ========


Balance on the       Note 1         46,771          8,957       22,015
technical account -
general business


Longer term                         16,366         14,809       30,293
investment return

Allocated
investment return
transferred to the
technical account -
general business                   (14,597)       (13,239)     (27,281)

Other income                        13,227          6,855       12,667

Other charges                            -            (59)        (163)
                                   ---------      ---------     --------

Operating profit     Note 2         61,767         17,323       37,531



Short term                          (6,407)        (3,205)     (12,356)
fluctuations in                    ---------      ---------     --------
investment return

Profit before                       55,360         14,118       25,175
taxation

Taxation                            (6,297)        (2,607)      (4,206)
                                   ---------      ---------     --------

Profit after                        49,063         11,511       20,969
taxation

Minority                              (127)          (209)        (627)
interests                          ---------      ---------     --------

Profit after                        48,936         11,302       20,342
taxation and
minority
interests

Dividends                           (4,379)        (3,718)      (9,243)
                                   ---------      ---------     --------

Retained profit                     44,557          7,584       11,099
                                   =========      =========     ========

                                      Cent           Cent         Cent
                                   =========      =========     ========

Operating earnings
per 60c ordinary
share based on
longer term
investment return                    126.18          35.03        75.34
                                   =========      =========     ========

Earnings per 60c                    119.39          27.35        48.76
ordinary share                     =========      =========     ========

Dividend per 60c                     10.60           9.10        22.00
ordinary share                     =========      =========     ========

Net assets per 60c                  615.87         502.49       510.13
ordinary share                     =========      =========     ========



                                FBD HOLDINGS PLC
                              GROUP BALANCE SHEET
                              As at 30th June 2003


                                     As at          As at        As at
ASSETS                             30/6/03        30/6/02     31/12/02
                               (Unaudited)    (Unaudited)    (Audited)
                                    €000's         €000's       €000's



Investments                      1,007,078        815,898      938,688

Reinsurers' share of                65,104         48,022       67,204
technical provisions

Debtors                             55,333         49,632       41,790

Other assets                        17,942         17,709       20,973

Prepayments and accrued             26,043         26,261       19,153
income                            ----------      ---------     --------

TOTAL ASSETS                     1,171,500        957,522    1,087,808

LIABILITIES

Technical provisions              (776,452)      (655,755)    (736,083)

Provision for other risks and      (10,732)       (13,560)     (11,671)
charges

Creditors                         (112,489)       (74,519)    (113,695)
                                  ----------      ---------     --------

NET ASSETS                         271,827        213,688      226,359
                                  ==========      =========     ========


CAPITAL AND RESERVES

Ordinary share capital              25,125         25,125       25,125

Share premium                        5,367          5,367        5,367

Reserves                           223,917        175,309      178,436
                                 ----------      ---------     --------

ORDINARY SHAREHOLDERS'
FUNDS                              254,409        205,801      208,928

Preference share capital             2,923          2,923        2,923

Minority interests                  14,495          4,964       14,508
                                  ----------      ---------     --------
                                   271,827        213,688      226,359
                                  ==========      =========     ========


                           FBD HOLDINGS PLC


                      GROUP CASH FLOW STATEMENT
                  For half year ended 30th June 2003



                                       Half Year     Half Year        Year
                                         Ended          Ended        Ended
                                       30/6/03        30/6/02     31/12/02
                                   (Unaudited)    (Unaudited)    (Audited)
                                        €000's         €000's       €000's


Net cash inflow from                    81,055         40,398      167,139
operating activities
Dividends paid                          (5,453)        (4,859)      (8,704)
Corporation tax paid                    (4,063)        (4,858)      (6,148)
Capital expenditure                     (1,595)        (1,060)      (1,814)
Financing                                2,658          3,573       (3,129)
                                     ----------      ---------    ---------
                                        72,602         33,194      147,344
                                     ==========      =========    =========


Cash flows were invested as follows

Increase (decrease) in cash               4,599     (3,533)     (3,860)
holdings                               ----------  ---------   ---------

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

Net portfolio investment
Quoted shares                            16,578        646      27,643
Quoted debt securities                  193,383     40,949    (207,331)
Unquoted shares                            (939)       713       2,565
Deposits with banks                    (137,793)   (42,761)    270,536
Loans and advances                       (1,116)    26,095      32,889
Land and property                        (2,110)    11,085      15,902
                                       ----------  ---------   ---------
                                         68,003     36,727     142,204
                                       ----------  ---------   ---------

Net investment of cash flows             72,602     33,194     147,344
                                       ==========  =========   =========



                               FBD HOLDINGS PLC

                 STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
                       For half year ended 30th June 2003

                                 Half Year      Half Year         Year
                                     Ended          Ended        Ended
                                   30/6/03        30/6/02     31/12/02
                               (Unaudited)    (Unaudited)    (Audited)
                                    €000's         €000's       €000's


Retained profit                     44,557          7,584       11,099

Exchange translation                  (469)          (331)        (717)
adjustment                        ----------      ---------     --------

Total gains recognised in           44,088          7,253       10,382
period
                                  ==========      =========     ========



           RECONCILIATION OF MOVEMENT IN ORDINARY SHAREHOLDERS' FUNDS
                       For half year ended 30th June 2003



                                 Half Year      Half Year         Year
                                     Ended          Ended        Ended
                                   30/6/03        30/6/02     31/12/02
                               (Unaudited)    (Unaudited)    (Audited)
                                    €000's         €000's       €000's



Profit after taxation and           48,936         11,302       20,342
minority interests
Less: preference dividends               -              -         (282)
                                  ----------      ---------     --------
Profit attributable to              48,936         11,302       20,060
ordinary shareholders
Dividends                           (4,379)        (3,718)      (8,961)
New share capital issued                 -            136          136
Other recognised losses               (469)          (331)        (717)
Reissue (purchase) of                1,393         (3,611)      (3,613)
ordinary shares                   ----------      ---------     --------
                                    45,481          3,778        6,905

Ordinary shareholders' funds
at beginning of period             208,928        202,023      202,023
                                  ----------      ---------   --------

Ordinary shareholders' funds       254,409        205,801      208,928
at end of period                  ==========      =========   ========




                            FBD HOLDINGS PLC



                                 SUPPLEMENTARY INFORMATION
                             For half year ended 30th June 2003


                            Half Year     Half Year             Year
                                Ended        Ended             Ended
                              30/6/03      30/6/02            31/12/02
                          (Unaudited)   (Unaudited)           (Audited)
                              €000's        €000's              €000's


Note 1 - Technical Result
-----------------------------

Gross written premiums        177,795      154,059               325,809
                              =========    =========              ========

Net earned premiums           141,194      114,641               240,325

Net claims incurred           (93,749)    (106,582)             (220,533)

Net operating expenses        (15,271)     (12,341)              (25,058)
                              ---------    ---------              --------

Underwriting result            32,174       (4,282)               (5,266)

Allocated investment           14,597       13,239                27,281
income
                              ---------    ---------              --------
Technical result               46,771        8,957                22,015
                              =========    =========              ========


Note 2 - Operating Profit by Activity
-----------------------------------------


Insurance Underwriting        48,704         10,669                25,340

Financial Services             2,855          1,536                 3,258

Property and Leisure          10,208          5,118                 8,933
                             ---------      ---------             --------
                              61,767         17,323                37,531
                             =========      =========             ========





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