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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Fbd Holdings Plc | LSE:FBH | London | Ordinary Share | IE0003290289 | ORD EUR0.60 (CDI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 13.75 | 13.20 | 14.30 | 13.75 | 13.75 | 13.75 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Insurance Carriers, Nec | 123.4M | 69.54M | 1.9839 | 10.03 | 697.54M |
From Apr 2019 to Apr 2024
TIDMFBH
RNS Number : 9778F
FBD Holdings PLC
27 February 2018
FBD HOLDINGS PLC
27 February 2018
FBD HOLDINGS PLC
PRELIMINARY ANNOUNCEMENT
For the year ended 31 December 2017
KEY HIGHLIGHTS
-- EUR50m profit before tax -- Proposed dividend of 24c per share -- Full year Return on Equity of 17% -- Full year Combined Operating Ratio of 86%
-- Gross Claims from Storm Ophelia of EUR10-11m managed to a net cost of EUR5.4m after reinsurance
-- Gross Written Premium up 3% to EUR372m -- Excellent financial results with key strategic targets met:
o New products launched: CarProtect, Travel, Car Hire Excess, Professional Indemnity and Directors & Officers Liability
o Digital enhancements to FBD.ie to improve customer experience
o Successful brand re-launch across farm, consumer and business products
o Increasing brand awareness in Dublin through a new office in Drumcondra and a planned office opening in South Dublin
o Continued strong focus on underwriting and risk selection
o Partnership with Post Insurance to offer FBD Car Insurance to Irish consumers
Hot Features
Premium
2017 2016
FINANCIAL SUMMARY EUR000s EUR000s
Gross written premium 372,459 361,799
Underwriting profit 44,935 3,220
Profit before taxation 49,736 11,442
Loss ratio 62.9% 76.4%
Expense ratio 23.3% 22.6%
Combined operating ratio 86.2% 99.0%
Cent Cent
Basic profit per share 123 26
Net assets per share 784 651
-- Gross Written Premium of EUR372m, EUR11m higher than 2016 (EUR362m). Excellent customer retention, with strong new business performance in farm, small business and consumer lines
-- COR of 86% compared to 99% in 2016. 2017 includes EUR15m (5%) benefit driven by prior year and EUR5.6m (1.7%) by Motor Insurance Bureau of Ireland (MIBI) reserve releases. Also includes net costs after reinsurance recoveries of EUR5.4m from Storm Ophelia
-- Net profit before tax of EUR50m, compared to EUR11m in 2016 -- Annualised total investment return of 1.2% (2016: 1.9%)
-- Solvency Capital Ratio of 164% (unaudited) increase due to the improvement in underwriting profitability and the paying down of older claims reserves
Commenting on these results Fiona Muldoon, Group Chief Executive, said:
"FBD has had an excellent year and we are pleased to see our strong strategic delivery reflected in these results. In particular, I am delighted the Board has proposed a dividend of 24c per share for our shareholders. After three years of hard work and corrective action, my colleagues and I have delivered a strong underwriting profit for the year. Storm Ophelia was managed to a net cost of EUR5.4m and our target return on equity has been exceeded a full twelve months ahead of schedule. FBD has displayed exceptional resilience and we are now well positioned to build on our loyal customer base. As we enter our 50(th) year of trading and as the only publicly quoted Irish insurer, FBD is here for farmers, businesses and consumers for the long-haul.
One year on from the Cost of Insurance Working Group report the rising cost of claims remains a challenge for Irish customers. The Government must follow through in implementing legislation to provide a lower cost, sustainable claims environment for the benefit of all insurance customers. We will work hard to help ensure that these proposals deliver for Irish farmers, businesses and consumers, who continue to bear the cost of significantly higher premiums than those seen in other countries. In addition, as productivity and stock numbers rise on Irish farms, FBD intends to continue to work with its farm customers to help deliver improved farm safety practices to halt the alarmingly high level of death and injury in the farm workplace."
A presentation will be made to analysts at 9.00am today, a copy of which will be available on our Group website www.fbdgroup.com.
Enquiries Telephone FBD Michael Sharpe, Investor Relations +353 1 409 3962 Powerscourt Jack Hickey +353 83 448 8339
About FBD Holdings plc ("FBD")
FBD is one of Ireland's largest property and casualty insurers, looking after the insurance needs of farmers, consumers and business owners. Established in the 1960s by farmers for farmers, FBD has built on those roots in agriculture to become a leading general insurer serving the needs of its direct agricultural, small business and consumer customers throughout Ireland. It has a network of 33 branches nationwide.
Forward Looking Statements
Some statements in this announcement are forward-looking. They represent expectations for the Group's business, and involve risks and uncertainties. These forward-looking statements are based on current expectations and projections about future events. The Group believes that current expectations and assumptions with respect to these forward-looking statements are reasonable. However, because they involve known and unknown risks, uncertainties and other factors, which are in some cases beyond the Group's control, actual results or performance may differ materially from those expressed or implied by such forward-looking statements.
The following details relate to FBD's ordinary shares of EUR0.60 each which are publicly traded:
Listing Irish Stock Exchange UK Listing Authority
Listing Category Premium Premium (Equity)
Trading Venue Irish Stock Exchange London Stock Exchange
Market Main Securities Main Market
Market
ISIN IE0003290289 IE0003290289
Ticker FBD.I or EG7.IR FBH.L
OVERVIEW
The Group's profitability and balance sheet strengthened significantly in 2017. FBD delivered a 17% return on equity due to an exceptionally strong underwriting result and some positive prior year reserve development. The Board has proposed a dividend of 24c per share in respect of the 2017 financial year. Gross written premium increased by 3% to EUR372.5m (2016: EUR361.8m), profit before tax increased to EUR49.7m (2016: EUR11.4m) including an underwriting profit of EUR44.9m (2016: EUR3.2m). The underwriting profit includes claims pay-outs from Storm Ophelia, which amounted to EUR5.4m after reinsurance recoveries and reinsurance reinstatement premia.
UNDERWRITING
Premium income
Gross written premium increased by EUR10.7m to EUR372.5m (2016: EUR361.8m), which is largely attributable to our farm, business and private motor products of EUR11.6m, offset by a EUR0.9m reduction in broker business. Moderate rate increases were carried across the book and the underlying performance of the business continues to improve.
New business volumes grew by 12% largely in commercial, private motor and farm. We continue to see strong retention rates across our book.
Reinsurance
The Group amended its reinsurance arrangements at the outset of 2017 to what it believes is a more effective programme, providing better cover in extreme events, while accepting more attritional property risk.
Claims
Net claims incurred amounted to EUR203.1m (2016: EUR227.9m). We experienced positive prior year reserve development of EUR15.4m driven by the 2016 accident year which is now showing sustained frequency improvements.
The MIBI levy reserve release of EUR5.6m is also reflected in these results following the Supreme Court ruling on the "Setanta" case. This case found that MIBI was not liable for third party motor insurer insolvency. In total the Group incurred a net charge of EUR1.9m (2016: EUR7.8m) relating to its MIBI levy and related obligation, which is calculated based on the Group's expected share of the motor market for 2017 and includes the MIBI levy reserve release of EUR5.6m.
Claims Environment
The claims environment has shown signs of moderation, but overall remains difficult. The average cost of claims continues to increase with higher levels of inflation observed in injury settlements, particularly for more minor injury levels.
The amended Book of Quantum has increased the level of damages awarded by the Injuries Board for most categories of injury. Despite this development, the rejection rate of Injuries Board awards remains very high amongst claimants. FBD's rejection rate has increased by 30% since 2013, with significantly fewer claimants now accepting Injuries Board awards than previously. The enactment by the Government of the proposed PIAB (Amendment) Bill to tackle the non-co-operation of claimants and their legal representatives with the Injuries Board, is necessary to reduce the claimant rejection rate and lower the cost of claims.
In January 2017 the Cost of Insurance Working Group published its report on Motor Insurance, with suggested reforms including strengthening the power of the Injuries Board, establishment of a Personal Injuries Commission and improved data sharing. The report on the cost of Employer and Public Liability insurance was published recently with some additional recommendations.
Progress to date on these recommendations includes:
-- The establishment of the Personal Injuries Commission and its first report, with a focus on standardisation of whiplash injuries.
-- The publication of the "First Motor Insurance Key Information Report" aimed at greater transparency on costs and trends.
-- Proposed increased powers for the Injuries Board as outlined in the PIAB (Amendment) Bill (enactment awaited).
-- Work started to establish an integrated insurance fraud database and the uninsured drivers database which can be updated to the Garda Automatic Number Plate Recognition (ANPR) system.
While acknowledging the limited progress made to date, in order for costs to reduce we believe that these projects urgently need to reach conclusion and the required legislation must be enacted to deliver meaningful reform.
Weather, Claims Frequency and Large Claims
Storm Ophelia, the strongest eastern Atlantic hurricane on record, swept through the country on 16 October 2017 causing significant wind damage. We received almost 2,200 claims with an approximate cost of EUR10-11m. The net cost to FBD is EUR5.4m net of reinsurance (inclusive of reinstatement premia).
Our underwriting approach has led to a sustained positive trend in motor injury frequency.
The gross cost of large claims in 2017 (greater than EUR0.5m) is EUR44m and is largely in line with the average of the past five years. On a net of reinsurance basis, our large claims cost is EUR5m lower than the five-year average as a result of the lower retentions in our 2017 reinsurance programme.
Expenses
The Group's expense ratio was 23.3% (2016: 22.6%). Other underwriting expenses were EUR75.9m an increase of EUR6.5m. EUR4.5m of the increase relates to changes in the reinsurance arrangements. The balance relates to the increased full year depreciation charge from the Group's new policy administration system.
The reclassification of claims handling expenses has reduced the reported expense ratio by 2.9 percentage points (2016: 3.4 percentage points) and increased the loss ratio by the same amount.
General
FBD's Combined Operating Ratio ("COR") was 86.2% generating an underwriting profit of EUR44.9m (2016: EUR3.2m).
Investment Return
FBD's total investment return for 2017 was 1.2% (2016: 1.9%), with 0.9% (2016: 0.8%) recognised in the Consolidated Income Statement and 0.3% (2016: 1.1%) recognised in the Consolidated Statement of Comprehensive Income. The modest returns are a reflection of the Eurozone low interest rate environment and the Group's conservative investment portfolio (94% of total assets are invested in cash and bonds). The Group holds a small portfolio of risk assets including equities, investment property and UCITS funds.
FINANCIAL SERVICES
The Group's financial services operations delivered a profit before tax of EUR4.5m for the period (2016 EUR2.3m profit before restructuring costs) and continue to deliver good results in a competitive environment. The Group's financial services operations include premium instalment services and life, pension and investment broking (FBD Financial Solutions), and certain holding company costs. We continue to evolve this business to ensure we can offer the broadest range of insurance products and services to our customers.
Profit per share
The diluted profit per share from continuing operations was 99 cent per ordinary share, compared to 26 cent per ordinary share in 2016.
Dividend
The Board believes that it is in the long-term interest of all stakeholders to maintain strong solvency and liquidity margins. It is focussed on ensuring that the Group's capital position continues to be robust and its financial position well managed.
Following the improvement in the financial performance of the business the Board proposes to pay a dividend of 24c per share for the 2017 financial year. This is equivalent to a pay-out ratio of approximately 20% in respect of 2017 profits. The Group will target an annual 20% to 50% pay-out range of full year profits when appropriate, recognising extreme weather events and inherent cyclicality are a feature of all insurance businesses.
This conservative policy is designed to recognise the importance of full year earnings in determining dividends while protecting the capital position of the Group. This dividend payment is a major milestone for FBD and reflects our confidence in the profitability and future prospects of the business.
Subject to the approval of shareholders at the Annual General Meeting to be held on 4 May 2018, the final dividend for 2017 will be paid on 11 May 2018 to the holders of shares on the register on 6 April 2018. The dividend is subject to withholding tax ("DWT") except for shareholders who are exempt from DWT and who have furnished a properly completed declaration of exemption to the Company's Registrar from whom further details may be obtained.
STATEMENT OF FINANCIAL POSITION
Capital position
Ordinary shareholders' funds at 31 December 2017 amounted to EUR271.6m (2016: EUR225.5m). The increase in shareholders' funds is mainly attributable to the following:
-- Profit after tax for the year of EUR42.7m
-- Mark to market gains on Available for Sale investments of EUR2.5m after tax recognised in the statement of other comprehensive income
-- Share based payments of EUR0.7m
-- The decrease in the defined benefit pension scheme obligation of EUR0.2m after tax following a 5bps increase in the discount rate to 1.75%
Net assets per ordinary share are 784 cent, compared to 651 cent per share at 31 December 2016.
Investment Allocation
The Group has continued with its conservative investment policy during the period. FBD has increased its exposure to Government bonds towards a 30% target allocation. During 2018 FBD will move into the final phase of its strategic asset allocation.
The allocation of the Group's underwriting investment assets is as follows:
31 December 2017 31 December 2016
EURm % EURm %
Deposits and cash 230 22% 270 27%
Corporate bonds 499 47% 493 49%
Government bonds 259 25% 177 18%
Equities 22 2% 24 2%
Unit trusts 24 2% 24 2%
Investment property 18 2% 16 2%
---------- -------- ---------- --------
1,052 100% 1,004 100%
---------- -------- ---------- --------
Solvency
The latest (unaudited) Solvency Capital Ratio (SCR) is 164%, increasing from 126% at the end of 2016. The improvement is driven by both the effect of the underlying profitability of the business on available capital and the impact of the paying down of older claims reserves on required capital.
OUTLOOK
In 2017 FBD delivered a return on equity of 17% and a current year COR of 93%, helped by strong underwriting actions and improved rate adequacy. Storm Ophelia represented a net cost of EUR5.4m. In addition 2017 included positive prior year and MIBI reserve releases of EUR15.4m and EUR5.6m respectively, both of which further improve the COR to 86%.
Strong progress has been made by the Group over the last three years and FBD is well positioned to deliver sustainable profitable growth and long-term shareholder value through growth in book value.
The claims environment has moderated although inflation is still evident. While the proposals made by the Cost of Insurance Working Group are sensible, they must be implemented in practice in order to deliver benefit to our customers. Farm safety remains a concern and the Group intends to continue to work hard in this area with its farm customers.
Brexit is likely to have a negative impact on our farm customers although Irish farming has proven resilient to setbacks in the past and has overcome all previous significant challenges. We remain confident in the sector's ability to adapt and thrive.
FBD continues to target careful growth, specifically through a measured increase in its urban business while retaining its large market share in rural Ireland. In 2018, we expect to deliver a COR in the low 90s (absent exceptional weather).
FBD Holdings plc
Consolidated Income Statement
For the financial year ended 31 December 2017
Continuing Operations
Restated
2017 2016
EUR000s EUR000s
Revenue 397,741 397,003
---------- -----------
Income
Gross premium written 372,459 361,799
Reinsurance premiums (27,267) (50,086)
---------- -----------
Net premium written 345,192 311,713
Change in provision for
unearned premiums (19,260) (3,487)
---------- -----------
Net premium earned 325,932 308,226
Net investment return 9,361 8,338
Financial services income 8,733 8,542
---------- -----------
Total income 344,026 325,106
Expenses
Net claims and benefits (203,144) (227,853)
Other underwriting expenses (75,908) (69,406)
Movement in other provisions (1,945) (7,747)
Financial services expenses (4,200) (6,592)
Revaluation of property,
plant and equipment (1,080) (330)
Restructuring and other
costs (1,715) (2,794)
Finance costs (6,298) (6,156)
Pension curtailment - 7,214
Profit before taxation
from continuing operations 49,736 11,442
Income taxation charge (7,040) (2,415)
---------- -----------
Profit for the financial
year from continuing operations 42,696 9,027
Discontinued operations
Profit for the financial
year from discontinued
operations, including profit
from sale - 1,653
---------- -----------
Profit for the financial
year 42,696 10,680
---------- -----------
Attributable to:
Equity holders of the parent 42,696 10,759
Non-controlling interests - (79)
42,696 10,680
---------- -----------
FBD Holdings plc
Consolidated Income Statement
For the financial year ended 31 December 2017
Earnings per share
From continuing operations 2017 2016
Cent Cent
Basic 123 26
------- -------
Diluted 99(1) 26
------- -------
From continuing and discontinued
operations
Basic 123 31
------- -------
Diluted 99(1) 31
------- -------
(1) Diluted earnings per share reflects the potential conversion of the convertible debt and share based payments
The accompanying notes form an integral part of the Financial Statements.
The above results derive from continuing operations and discontinued operations.
The Financial Statements were approved by the Board and authorised for issue on 26 February 2018.
FBD Holdings plc
Consolidated Statement of Comprehensive Income
For the financial year ended 31 December 2017
2017 2016
EUR000s EUR000s
Profit for the financial
year 42,696 10,680
-------- ----------
Items that will or may be
reclassified to profit or
loss in subsequent periods:
Net gain on available for
sale financial assets during
the year 2,807 10,371
Taxation charge relating
to items that will or may
be reclassified to profit
or loss in subsequent periods (351) (1,296)
Items that will not be reclassified
to profit or loss in subsequent
periods:
Actuarial gain/ (loss) on
retirement benefit obligations 275 (12,233)
Taxation (charge)/credit
relating to items not to
be reclassified in subsequent
periods (34) 1,529
-------- ----------
Other comprehensive income/(expense)
after taxation 2,697 (1,629)
-------- ----------
Total comprehensive income
for the financial year 45,393 9,051
-------- ----------
Attributable to:
Equity holders of the parent 45,393 9,130
Non-controlling interests - (79)
45,393 9,051
-------- ----------
FBD Holdings plc
Consolidated Statement of Financial Position
At 31 December 2017
ASSETS
2017 2016
EUR000s EUR000s
Property, plant and equipment 68,251 72,994
Investment property 18,000 16,400
Loans 681 732
Deferred taxation asset 5,467 12,234
Financial assets
Available for sale investments 758,687 629,498
Investments held for trading 45,347 90,302
Deposits with banks 195,985 236,897
---------- ----------
1,000,019 956,697
---------- ----------
Reinsurance assets
Provision for unearned
premiums 4 13,954
Claims outstanding 90,561 69,260
---------- ----------
90,565 83,214
---------- ----------
Retirement benefit asset 9,774 8,715
Current taxation asset 3,934 4,162
Deferred acquisition costs 31,366 25,004
Other receivables 64,020 62,770
Cash and cash equivalents 27,176 26,561
---------- ----------
Total assets 1,319,253 1,269,483
---------- ----------
FBD Holdings plc
Consolidated Statement of Financial Position (continued)
At 31 December 2017
EQUITY AND LIABILITIES 2017 2016
EUR000s EUR000s
Equity
Called up share capital
presented as equity 21,409 21,409
Capital reserves 19,726 19,041
Retained earnings 212,259 166,866
Other reserves 18,232 18,232
---------- ----------
Equity attributable to
ordinary equity holders
of the parent 271,626 225,548
Preference share capital 2,923 2,923
Total equity 274,549 228,471
Liabilities
Insurance contract liabilities
Provision for unearned
premiums 186,008 180,692
Claims outstanding 765,012 745,490
---------- ----------
951,020 926,182
Other provisions 6,647 11,247
Convertible debt 52,525 51,136
Deferred taxation liability 3,845 3,347
Payables 30,667 49,100
Total liabilities 1,044,704 1,041,012
---------- ----------
Total equity and liabilities 1,319,253 1,269,483
---------- ----------
The accompanying notes form an integral part of the Financial Statements.
FBD Holdings plc
Consolidated Statement of Cash Flows
For the financial year ended 31 December 2017
2017 2016
Notes EUR000s EUR000s
Cash flows from operating activities
Profit before taxation 49,736 13,095
Adjustments for:
(Profit)/loss of investments held for trading (1,685) 2,596
Loss on investments available for sale 5,981 4,467
Interest and dividend income (12,735) (14,233)
Depreciation of property, plant and equipment 11,426 10,795
Share-based payment expense 685 488
Revaluation of investment property (1,600) (1,850)
Revaluation of property, plant and equipment 1,080 330
Increase/(decrease) in insurance contract liabilities 17,486 (3,677)
(Decrease)/increase in other provisions (4,600) 309
Profit on disposal of discontinued operation - (1,916)
Operating cash flows before movement in working capital 65,774 10,404
(Increase)/decrease in receivables and deferred acquisition costs (8,094) 64
Decrease in payables (13,084) (12,352)
Interest payments on convertible debt (4,900) (4,900)
Purchase of investments held for trading (958) (13,996)
Sale of investments held for trading 47,597 15,473
Cash generated from/(used in) operations 86,335 (5,307)
Interest and dividend income received 13,218 13,441
Income taxes refunded 228 5,561
---------- ----------
Net cash generated from operating activities 99,781 13,695
---------- ----------
Cash flows from investing activities
Purchase of available for sale investments (258,355) (322,503)
Sale of available for sale investments 125,989 188,746
Purchase of property, plant and equipment (7,869) (12,113)
Sale of property, plant and equipment 106 80
Decrease in loans and advances 51 100
Decrease in deposits invested with banks 40,912 134,436
Net cash inflow from sale of subsidiary undertaking - 1,930
Net cash used in investing activities (99,166) (9,324)
---------- ----------
Cash flows from financing activities
Dividends paid to non-controlling interests - (120)
Proceeds of re-issue of ordinary shares - 66
Net cash used in financing activities - (54)
---------- ----------
Net increase in cash and cash equivalents 615 4,317
Cash and cash equivalents at the beginning of the year 26,561 22,244
Cash and cash equivalents at the end of the financial year 27,176 26,561
---------- ----------
The accompanying notes form an integral part of the Financial Statements.
FBD Holdings plc
Consolidated Statement of Changes in Equity
For the financial year ended 31 December 2017
Called up Capital Retained Other Attributable Preference Non-controlling Total
share reserves earnings reserves to ordinary share interests equity
capital shareholders capital
presented
as equity
EUR000s EUR000s EUR000s EUR000s EUR000s EUR000s EUR000s EUR000s
Balance at 1
January 2016 21,409 18,553 157,670 18,232 215,864 2,923 451 219,238
Profit after
taxation - - 10,759 - 10,759 - (79) 10,680
Other
comprehensive
expense - - (1,629) - (1,629) - - (1,629)
---------- --------- ---------- --------- ------------- ----------- ---------------- ----------
21,409 18,553 166,800 18,232 224,994 2,923 372 228,289
Reissue of
ordinary
shares - - 66 - 66 - - 66
Recognition of
share based
payments - 488 - - 488 - - 488
Dividend paid to
non-controlling
interests - - - - - - (120) (120)
Disposal of
subsidiary
undertaking - - - - - - (252) (252)
---------- --------- ---------- --------- ------------- ----------- ---------------- ----------
Balance at 31
December 2016 21,409 19,041 166,866 18,232 225,548 2,923 - 228,471
---------- --------- ---------- --------- ------------- ----------- ---------------- ----------
Profit after
taxation - - 42,696 - 42,696 - - 42,696
Other
comprehensive
income - - 2,697 - 2,697 - - 2,697
---------- --------- ---------- --------- ------------- ----------- ---------------- ----------
21,409 19,041 212,259 18,232 270,941 2,923 - 273,864
Recognition of
share based
payments - 685 - - 685 - - 685
Balance at 31
December 2017 21,409 19,726 212,259 18,232 271,626 2,923 - 274,549
---------- --------- ---------- --------- ------------- ----------- ---------------- ----------
FBD Holdings plc
Supplementary Information
For the year ended 31 December 2017
Note 1 Underwriting PROFIT
2017 2016
EUR000s EUR000s
Gross premium written 372,459 361,799
---------- ----------
Net premium earned 325,932 308,226
Net claims incurred (203,144) (227,853)
Other provisions (1,945) (7,747)
Net underwriting expenses (75,908) (69,406)
---------- ----------
Underwriting Profit 44,935 3,220
---------- ----------
2017 2016
Net underwriting expenses EUR000s EUR000s
Management expenses 81,751 75,399
Deferred acquisition costs (6,363) 2,541
--------- ---------
Gross underwriting expenses 75,388 77,940
Reinsurance commissions
receivable (2,528) (11,660)
Broker commission payable 3,048 3,126
--------- ---------
Net underwriting expenses 75,908 69,406
--------- ---------
FBD Holdings plc
Supplementary Information (continued)
For the year ended 31 December 2017
Note 2 EARNINGS PER EUR0.60 ORDINARY SHARE
The calculation of the basic and diluted earnings per share attributable to the ordinary shareholders is based on the following data:
2017 2016
Earnings EUR000s EUR000s
Profit for the year 42,696 10,680
Non-controlling interests - 79
Profit for the purpose of basic
and diluted earnings per share 42,696 10,759
Adjustments to exclude profit
for the year from discontinued
operations - (1,653)
----------- -----------
Earnings from continuing operations
for the purpose of basic and
diluted earnings per share
excluding discontinued operations 42,696 9,106
----------- -----------
Number of shares 2017 2016
Weighted average number of
ordinary shares for the purpose
of
basic earnings per share (excludes
treasury shares) 34,666,201 34,654,611
Weighted average number of
ordinary shares for the purpose
of
diluted earnings per share
(excludes treasury shares) 43,329,630 34,782,247
----------- -----------
From continuing operations Cent Cent
Basic earnings per share 123 26
----------- -----------
Diluted earnings per share 99(1) 26
----------- -----------
From discontinued operations Cent Cent
Basic earnings per share - 5
----------- -----------
Diluted earnings per share - 5
----------- -----------
(1) Diluted earnings per share reflects the potential conversion of the convertible debt and share based payments
The 'A' ordinary shares of EUR0.01 each that are in issue have no impact on the earnings per share calculation.
FBD Holdings plc
Supplementary Information (continued)
For the year ended 31 December 2017
Note 3 DIVIDS
2017 2016
Proposed: EUR000s EUR000s
Dividend of 8.4 cent (2016: nil
cent) per share on 14% non-cumulative 113 -
preference shares of EUR0.60 each
Dividend of 4.8 cent (2016: nil
cent) per share on 8% non-cumulative 169 -
preference shares of EUR0.60 each
Final dividend of 24.0 cent (2016:
nil cent) per share on ordinary 8,320 -
shares of EUR0.60 each
-------- --------
Total dividends proposed 8,602 -
-------- --------
The proposed dividend is subject to approval by shareholders at the Annual General Meeting on 4 May 2018 and has not been included as a liability in the Consolidated Statement of Financial Position.
Note 4 CALLED UP SHARE CAPITAL PRESENTED AS EQUITY
Number 2017 2016
EUR000s EUR000s
(i) Ordinary shares of
EUR0.60 each
Authorised:
At the beginning and the
end of the year 51,326,000 30,796 30,796
------------ -------- --------
Issued and fully paid:
At the beginning and the
end of the year 35,461,206 21,277 21,277
------------ -------- --------
(ii) 'A' Ordinary shares
of EUR0.01 each
Authorised:
At the beginning and the
end of the year 120,000,000 1,200 1,200
------------ -------- --------
Issued and fully paid:
At the beginning and the
end of the year 13,169,428 132 132
------------ -------- --------
Total - issued and fully
paid 21,409 21,409
-------- --------
The 'A' ordinary shares of EUR0.01 each are non-voting. They are non-transferable except only to the Company. Other than a right to a return of paid up capital of EUR0.01 per 'A' ordinary share in the event of a winding up, the 'A' ordinary shares have no right to participate in the capital or the profits of the Company.
The holders of the two classes of non-cumulative preference shares rank ahead of the two classes of ordinary shares in the event of a winding up. Before any dividend can be declared on the ordinary shares of EUR0.60 each, the dividend on the non-cumulative preference shares must firstly be declared or paid.
FBD Holdings plc
Supplementary Information (continued)
For the year ended 31 December 2017
The number of ordinary shares of EUR0.60 each held as treasury shares at the beginning (and the maximum number held during the year) was 795,005 (2016: 813,084). The number of ordinary shares of EUR0.60 each held as treasury shares at the end of the year was 795,005 (2016: 795,005). This represented 2.2% (2016: 2.2%) of the shares of this class in issue and had a nominal value of EUR477,003 (2016: EUR477,003). There were no ordinary shares of EUR0.60 each purchased by the Company during the year.
The weighted average number of ordinary shares of EUR0.60 each in the earnings per share calculation has been reduced by the number of such shares held in treasury.
All issued shares have been fully paid.
Note 5 TRANSACTIONS WITH RELATED PARTIES
Farmer Business Developments plc has a substantial shareholding in the Group at 31 December 2017. Details of their shareholding and related party transactions are set out in the Annual Report.
There were no transactions with Farmers Business Developments plc during the year.
For the purposes of the disclosure requirements of IAS 24, the term "key management personnel" (i.e. those persons having authority and responsibility for planning, directing and controlling the activities of the Company) comprises the Board of Directors and Company Secretary of FBD Holdings plc and the Group's primary subsidiary, FBD Insurance plc and the members of the Executive Management Team.
The remuneration of key management personnel ("KMP") during the year was as follows:
2017 2016
EUR000s EUR000s
Short term employee benefits(1) 3,590 3,005
Post-employment benefits 269 222
Share based payments 440 183
-------- --------
Charge to the Consolidated Income
Statement 4,299 3,410
-------- --------
(1) Short term benefits include fees to non-executive Directors, salaries and other short-term benefits to all Key Management Personnel.
Full disclosure in relation to the 2017 and 2016 compensation entitlements and share awards of the Board of Directors is provided in the Annual Report.
In common with all shareholders, Directors received payments/distributions related to their holdings of shares in the Company during the year, amounting in total to EURnil (2016: EURnil).
Note 6 CHANGE IN ACCOUNTING POLICY
During the year, the Group changed its accounting policy with respect to the treatment of claims handling expenses. The Group now includes claims handling expenses within net claims and benefits. Prior to this change in policy, the Group included these expenses within other underwriting expenses.
FBD Holdings plc
Supplementary Information (continued)
For the year ended 31 December 2017
The Group believes the new policy is preferable as it aligns the Group to industry standard by including claims handling expenses within net claims and benefits.
The impact of this voluntary change in accounting policy is a reclassification of EUR9,597,000 (2016: EUR10,343,000) from other underwriting expenses to net claims and benefits. There is no change in the prior year profit of the Group, or on the opening shareholders' funds of the Group as a result of this change.
This accounting policy is in place for 2017. There is no impact on the Statement of Financial Position for these changes.
During the year the Group also changed the presentation of interest payments on convertible debt within cash flows from operating activities in the Consolidated Statement of Cash Flows by presenting these cash flows as a separate line item. The Group believes this new policy improves disclosure of cash flows from operating activities. This change has no impact on previously reported cash flows of the Group.
Note 7 Alternative performance measures (APM's)
The Group uses the following alternative performance measures: Loss ratio, expense ratio, combined operating ratio, investment return and net asset value per share.
Loss ratio (LR), expense ratio (ER) and combined operating ratio (COR) are widely used as a performance measure by insurers, and give users of the financial statements an understanding of the underwriting performance of the entity. Investment return is used widely as a performance measure to give users of financial statements an understanding of the performance of an entities investment portfolio. Net asset value per share (NAV) is a widely used performance measure which provides the users of the financial statements the book value per share.
The calculation of the APM's is based on the following data:
Restated
2017 2016
EUR000s EUR000s
Loss ratio
Net claims and benefits 203,144 227,853
Movement in other provisions 1,945 7,747
----------
Total claims incurred 205,089 235,600
Net premium earned 325,932 308,226
----------
Loss ratio (Total claims/Net
premium earned) 62.9% 76.4%
---------- ----------
Expense ratio
Other underwriting expenses 75,908 69,406
Net premium earned 325,932 308,226
---------- ----------
Expense ratio (Underwriting expenses/Net
premium earned) 23.3% 22.6%
---------- ----------
Restated
2017 2016
Combined operating ratio % %
Loss ratio 62.9% 76.4%
Expense ratio 23.3% 22.6%
---------- ----------
Combined operating ratio (Loss
ratio + Expense ratio) 86.2% 99.0%
---------- ----------
2017 2016
Investment return EUR'000s EUR'000s
Investment return recognised
in Consolidated Income Statement 9,361 8,338
Investment return recognised
in Consolidated Statement of
Comprehensive Income 2,807 10,371
----------- ---------
Total investment return 12,168 18,709
----------- ---------
Average underwriting investment
assets 1,027,637 991,152
----------- ---------
Investment return (Total investment
return/Average underwriting investment
assets) 1.2% 1.9%
----------- ---------
2017 2016
Net asset value per share EUR'000s EUR'000s
Equity attributable to ordinary
equity holders of the parent 271,626 225,548
----------- -----------
Number of shares
Number of ordinary shares in
issue (excluding treasury) 34,666,201 34,666,201
----------- -----------
Cent Cent
Net asset value per share (NAV)
(Shareholders funds / Closing
number of ordinary shares) 784 651
----------- -----------
Note 8 Subsequent Events
There have been no subsequent events that would have a material impact on the Financial Statements.
Note 9 General Information and Accounting Policies
The financial information set out in this document does not constitute full statutory Financial Statements for the years ended 31 December 2017 or 2016 but is derived from same. The Group Financial Statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union, applicable Irish law and the listing Rules of the Irish Stock Exchange, the Financial Conduct Authority and comply with Article 4 of the EU IAS Regulation.
The 2017 and 2016 Financial Statements have been audited and received unqualified audit reports.
FBD Holdings plc
Supplementary Information (continued)
For the year ended 31 December 2017
The 2017 Financial Statements were approved by the Board of Directors on 26 February 2018.
The Consolidated Financial Statements are prepared under the historical cost convention as modified by the revaluation of property, investments held for trading, available for sale investments and investment property which are measured at fair value.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR EAXAKAAXPEFF
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February 27, 2018 02:00 ET (07:00 GMT)
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