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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 |
TIDMFBH
RNS Number : 0923N
FBD Holdings PLC
04 August 2017
FBD HOLDINGS PLC
4(th) August 2017
FBD HOLDINGS PLC
Half Yearly Report
For the Six Months Ended 30 June 2017
KEY HIGHLIGHTS
-- Profit before tax of EUR11.9m -- Gross Written Premium up 4.9% to EUR189.7m (2016: EUR180.8m)
-- Combined Operating Ratio ("COR") of 93.1% including a one-time EUR5.6m MIBI provision release following the Setanta Supreme Court judgement ("the MIBI levy release")
-- Underlying improvement in loss ratios from better risk selection and improved price adequacy
-- Further strong progress on our strategic objectives. FBD is on track to deliver targeted returns on capital following:
o Successful new brand launch with positive impact on customer retention and new business
o Strengthening Solvency II capital ratio
o New reinsurance programme in place expected to provide greater protection at lower cost
o Return to profitability of Financial Solutions business following significant restructuring
o Successful implementation of new IT policy administration system
FINANCIAL SUMMARY
2017 2016 EUR'000s EUR'000s Gross written premium 189,650 180,845 Underwriting profit/(loss) 11,072 (1,595) Profit/(loss) before taxation 11,919 (3,652) Loss ratio 70.5% 78.9% Expense ratio 22.6% 22.1% Combined operating ratio 93.1% 101.0% Cent Cent Basic earnings/loss per share 30 (9) Net asset value per share 688 607
-- Gross written premium increased EUR8.9m to EUR189.7m with both strong retention and new business performance in our Farm, Small Business and Consumer lines
-- Average premium rate increases of 5% -- Profit before tax of EUR11.9m compared to a loss of EUR3.7m in 2016 -- COR of 93.1% compared to 101% in the same period last year
-- Annualised total investment return of 0.7%, reflecting on-going low-return environment with increases in core bond yields driving modest unrealised mark to market losses of 0.3%
Fiona Muldoon, Group Chief Executive, said:
"This is a good set of results and reflects the strong actions taken in the last few years. Our focus on delivery for our farm, small business and consumer customers has returned our business to profit. Our nationwide network of offices and our midlands-based service centre delivers real value and service to our customers and is why they choose to give us their business in a difficult pricing environment.
While we welcome the Government report on reducing the cost of claims for all insurance users, we believe we need urgent reforms to tackle injury claims payouts and to address the impact claims costs are having on the affordability of insurance for farmers, small businesses and consumers up and down the country. In the absence of reform all insurance customers will continue to pay the too-high cost of these awards through higher insurance premiums."
A presentation will be made to analysts at 9am today, a copy of which will be available on our Group website www.fbdgroup.com.
Enquiries Telephone FBD Fiona Muldoon, Group Chief Executive +353 1 409 3208 John O'Grady, Group Chief Financial Officer Peter Jackson, Head of Investor Relations Powerscourt Rory Godson/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 Market Main Market ISIN IE0003290289 IE0003290289 Ticker FBD.I or EG7.IR FBH.L
OVERVIEW
The results for the first half of 2017 are strong and represent a solid start to the year, providing further evidence that FBD is on a clear path to the achievement of our targeted returns on equity. The Group recorded an increase in gross written premiums during the period of EUR8.9m or 4.9% to EUR189.7m (2016: EUR180.8m), a profit before tax of EUR11.9m (2016: EUR3.7m loss) and an underwriting profit of EUR11.1m (2016: EUR1.6m loss).
UNDERWRITING
Premium Income
The Group continues to focus on its core farm, small business and consumer customers. Gross written premium for the first six months of 2017 increased by EUR8.9m or 4.9% to EUR189.7m, compared to EUR180.8m for the same period last year. Gross written premium in our direct operations increased by EUR9.3m or 5.5%, while gross written premium written through brokers decreased by EUR0.5m or 4.0%.
New business volumes have increased by 15% compared to the second half of 2016 and 12% on the same period last year. Overall policy volumes have now stabilised, with a 0.3% decline in policies written compared to the first half of 2016. Average premium rates increased by 2% in the period and 5% since the first half of 2016. The Group is now targeting modest growth in our core areas while continuing to apply underwriting discipline.
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. The impact of this has been an increase in net earned premium, partially offset by a reduction in reinsurance commission received.
Claims
Net claims incurred, including claims handling expenses and movement in MIBI provisions, amounted to EUR112.0m for the period (2016: EUR120.0m).
Claims reserves overall are continuing to develop in line with expectations. There was modest positive prior year development experienced in the period which arose mainly in motor injury.
The Group incurred EUR0.1m (2016: EUR5.0m) relating to its MIBI levy obligation for the first six months of 2017. The MIBI levy is calculated based on the Group's expected share of the motor market for 2017 and the estimated levy call which will be made by the MIBI. The charge includes the MIBI levy release of EUR5.6m following the recent Supreme Court ruling on the "Setanta" case which found that the MIBI was not liable for third party claims from motor insurer insolvencies.
The Group has reclassified claims handling expenses from other underwriting expenses to net claims incurred in the current period. Claims handling expenses for the first six months of 2017 amounted to EUR4.8m (2016: EUR5.1m). Prior year numbers have been similarly reclassified. This treatment brings the Group in line with normal industry practice.
Claims Environment
The claims environment has stabilised somewhat during 2017 with claims inflation continuing to moderate from the very high levels seen in 2014 and 2015. While it is difficult yet to assess the impact of the introduction last year of the new Book of Quantum, average Injury Board awards for FBD have increased by approximately 10% since early 2016. A wide variation in court awards for similar injury types is also evident as well as the early involvement of solicitors in all claims including those seen by the Injuries Board.
The Group welcomes the progress being made by the Cost of Insurance Working Group, in particular the establishment of the Personal Injuries Commission, the commencement of work on assessing the impact of changes in court jurisdictional limits on claim costs, and the beginning of work to establish a framework to provide reliable data for assessing the impact of legal and other fees on personal injury awards. The Group also notes the publication of the general scheme of the Personal Injuries Assessment Board (Amendment) Bill.
The Group welcomes the proposed strengthening of the powers of the Personal Injuries Assessment Board to enable claims settlement in a more efficient and expedient manner for all parties. Serious reform is required to tackle the cost of claims and enable reductions in premiums for insurance customers.
Other uncertainties in the claims environment include the challenge by the Department of Social Protection to the operation of the Recovery Benefit Assistance scheme and the impact of measures taken to reduce delays with finalisation of legal costs. Both areas have the potential to adversely impact costs for insurers.
Weather, Claims Frequency and Large Claims
Weather in the first half of 2017 was relatively benign and there were no events of note.
Motor injury frequency continued to decline as the underwriting and risk selection actions taken by the Group yield results.
The gross cost of large claims (greater than EUR500k) of EUR19m is largely in line with the average of the past five years. On a net of reinsurance basis, our large claims cost is EUR4m lower than the five year average as a result of the lower retentions in our reinsurance programme.
Other Underwriting Expenses
The Group's expense ratio was 22.6% for the period (2016: 22.1%). Other underwriting expenses were EUR35.9m an increase of EUR2.2m. This was largely due to an increase in the depreciation charge from the Group's new policy administration system.
The reclassification of claims handling expenses has reduced the reported expense ratio by 3.0 percentage points (2016: 3.4 percentage points) and increased the loss ratio by the same amount.
The new reinsurance programme in place for 2017 resulted in lower reinsurance commissions of EUR4.1m in the period. This had an adverse impact on the expense ratio of approximately 2.6 percentage points. This impact has been offset in the first half of 2017 by the one-time release of previously deferred commissions receivable related to the commutation of the property reinsurance surplus treaty.
General
FBD's combined operating ratio was 93.1% for the period, generating an underwriting profit of EUR11.1m (2016: EUR1.6m loss).
Investment Return
The Group's total investment return for the first six months of 2017 was an annualised 0.68% (2016: 1.92%), with 0.77% (2016: 0.06%) recognised in the income statement and -0.09% (2016: 1.86%) recognised in the statement of other comprehensive income. The investment return reflects the continuing low interest rate environment and the Groups low risk investment allocation, with increases in core bond yields in late June driving modest unrealised mark to market losses which impacted the annualised return by approximately 0.3%.
Financial Services
The Group's financial services business delivered a profit of EUR1.8m for the period (2016: EUR0.5m before restructuring charges), a solid performance in a difficult environment. The Group's financial services operations include premium instalment services and life, pension and investment broking (FBD Financial Solutions), less holding company costs. The Financial Solutions business generated a profit in this half year following our 2016 restructuring.
Profit per share
The Group recorded a diluted profit per share of 30 cent per ordinary share in the first half of 2017, compared to a loss of 9 cent per ordinary share in the same period in 2016.
STATEMENT OF FINANCIAL POSITION
Capital position
Ordinary shareholders' funds at 30 June 2017 amounted to EUR238.5m (December 2016: EUR225.5m). The increase in shareholders' funds is mainly attributable to the following:
-- profit after taxation for the period of EUR10.3m
-- the movement in the defined benefit pension scheme obligation of EUR2.5m, net of tax, following a 30bps increase in the discount rate to 2.0%
-- offset by mark to market losses on the Group's Available for Sale investments of EUR0.4m after tax recognised in the statement of other comprehensive income
-- share based payments of EUR0.6m.
Net assets per ordinary share are 688 cent, compared to 651 cent per share at 31 December 2016.
Solvency
As disclosed in the 31(st) December 2016 Solvency & Financial Condition Report issued in May, the solvency position of the Group was 126% of the required amount. The Group is committed to maintaining a strong solvency position.
Investment Allocation
The Group has continued a policy of low risk investment allocation during the period, increasing the allocation of funds to Government bonds and reducing exposure to term deposits.
Details of the allocation of the Groups underwriting investment assets is as follows:
30 June 2017 31 December 2016 Underwriting Investment Assets EUR'm % EUR'm % Deposits & cash 220 22% 270 27% Corporate bonds 494 48% 493 49% Government bonds 242 24% 177 18% Equities 22 2% 24 2% Unit trusts 24 2% 24 2% Investment Property 16 2% 16 2% Underwriting investment assets 1,018 100% 1,004 100%
We are continuing to increase our exposure to Government bonds up to our Strategic Asset Allocation target of 30% of the portfolio.
OUTLOOK
The results of the first half of 2017 are good and it is now evident that FBD has stabilised. The Group looks forward to developing on this success, targeting modest profitable growth and continued stabilisation in policy volumes in the second half of 2017.
Our combined operating ratio was driven mainly by good current year accident frequency and the MIBI levy release. We believe our amended reinsurance programme has resulted in a more efficient programme, providing better cover in extreme events and higher retained premiums. Strong progress continues to be made on all strategic objectives.
There is still uncertainty evident in the claims environment which in the absence of meaningful reform means the Group does not see any downward momentum in underlying claims costs.
The Group's ambition is to deliver sustainable shareholder value with continuing progression towards a return on equity ("ROE") in the low teens, delivered through careful growth in its farm, small business and consumer operations, within risk appetite and in line with Irish economic growth generally. While the Irish economy continues to grow, Brexit remains a substantial risk with business and trading uncertainty prevalent for all Irish indigenous businesses such as ours and our customers'.
The Group will continue to focus on its farm, small business and consumer customers, concentrating on those markets where it has developed a significant competitive advantage, with superior customer service through our nationwide local branch network and midlands-based service centre. On-going investment in enhancing our digital capabilities to reflect changing buying patterns, together with improvements in pricing sophistication and risk selection will be key priorities in the immediate future.
FBD HOLDINGS PLC
Condensed Consolidated Income Statement
For the half year ended 30 June 2017
Adjusted(1) Adjusted(1) Half year Half year Year ended 31/12/16 (audited) ended ended Notes 30/06/17 30/06/16 (unaudited) (unaudited) EUR000s EUR000s EUR000s Revenue 3 202,524 198,179 397,003 -------------- ------------- ------------------------------- Income Gross premium written 189,650 180,845 361,799 Reinsurance premiums (7,446) (25,415) (50,086) -------------- ------------- ------------------------------- Net premium written 182,204 155,430 311,713 Change in provision for unearned premiums (23,273) (3,410) (3,487) -------------- ------------- ------------------------------- Net premium earned 158,931 152,020 308,226 Net investment return 3,898 271 8,338 Financial services income 4,391 3,888 8,542 -------------- ------------- ------------------------------- Total income 167,220 156,179 325,106 Expenses Net claims and benefits(1) (111,971) (114,955) (227,853) Other underwriting expenses(1) 4 (35,862) (33,662) (69,406) Movement in MIBI Levy (26) (4,998) (7,747) Financial services expenses (2,633) (3,348) (6,592) Restructuring and other costs (1,717) (1,266) (2,794) Finance costs (3,092) (3,255) (6,156) Revaluation of property, plant and equipment - - (330) Pension curtailment - - 7,214 Result before taxation 11,919 (5,305) 11,442
Income taxation (charge)/credit (1,608) 542 (2,415) -------------- ------------- ------------------------------- Result for the period from continuing operations 10,311 (4,763) 9,027 Discontinued operations Result for period from discontinued operations including profit/(loss) from sale - 1,653 1,653 Result for the period 10,311 (3,110) 10,680 -------------- ------------- ------------------------------- Attributable to: Equity holders of the parent 10,311 (3,031) 10,759 Non-controlling interests - (79) (79) 10,311 (3,110) 10,680 -------------- ------------- -------------------------------
(1) Adjusted: Claims handling expenses are now reflected in Net claims and benefits rather than Other underwriting expenses. Adjustments have been made to comparative periods to reflect this.
FBD HOLDINGS PLC
Condensed Consolidated Income Statement
For the half year ended 30 June 2017
Half year Half year Year ended 31/12/16 (audited) ended ended 30/06/16 30/06/17 (unaudited) (unaudited) Notes Earnings/(loss) Cent Cent Cent per share From continuing operations Basic 8 30 (14) 26 ---------------- ------------------- ------------------------------ Diluted 8 30 (14) 26 ---------------- ------------------- ------------------------------ From continuing and discontinued operations Basic 8 30 (9) 31 ------ ------- ------ Diluted 8 30 (9) 31 ------ ------- ------
FBD HOLDINGS PLC
Condensed Consolidated Statement of Comprehensive Income
For the half year ended 30 June 2017
Half year Half year Year ended ended 30/06/16 31/12/16 (audited) ended 30/06/17 (unaudited) (unaudited) EUR000s EUR000s EUR000s Result for the period 10,311 (3,110) 10,680 ----------------- ----------------- ------------ Items that will or may be reclassified to profit or loss in subsequent periods: Net (loss)/gain on available for sale assets (423) 9,161 10,371 Taxation credit/(charge) relating to items that will or may be reclassified to profit or loss in subsequent periods 53 (1,145) (1,296) Items that will not be reclassified to profit or loss in subsequent periods: Actuarial gain/(loss) on retirement benefit obligations 2,808 (12,320) (12,233) Taxation (charge)/credit relating to items not to be reclassified in subsequent periods (351) 1,540 1,529 ----------------- ----------------- ------------ Other comprehensive income/(expense) after taxation 2,087 (2,764) (1,629) ----------------- ----------------- ------------ Total comprehensive income/(expense) for the period 12,398 (5,874) 9,051 ----------------- ----------------- ------------ Attributable to: Equity holders of the parent 12,398 (5,795) 9,130 Non-controlling interests - (79) (79) 12,398 (5,874) 9,051 ----------------- ----------------- ------------
FBD HOLDINGS PLC
Condensed Consolidated Statement of Financial Position
At 30 June 2017
ASSETS 30/06/17 30/06/16 31/12/16 (unaudited) (unaudited) (audited) Notes EUR000s EUR000s EUR000s Property, plant and equipment 70,188 74,351 72,994 Investment property 16,400 14,550 16,400 Loans 705 752 732 Deferred taxation asset 10,485 12,938 12,234 Financial assets Available for sale investments 736,483 548,010 629,498 Investments held for trading 46,159 88,571 90,302 Deposits with banks 185,781 305,676 236,897 ------------- ------------- ----------- 968,423 942,257 956,697 ------------- ------------- ----------- Reinsurance assets Provision for unearned premiums 4 14,821 13,954 Claims outstanding 70,714 62,484 69,260 ------------- ------------- ----------- 70,718 77,305 83,214 ------------- ------------- ----------- Retirement benefit asset 12,500 - 8,715 Current taxation asset 4,103 4,557 4,162 Deferred acquisition costs 30,355 25,695 25,004 Other receivables 71,161 63,891 62,770 Cash and cash equivalents 31,516 31,606 26,561 ------------- ------------- ----------- Total assets 1,286,554 1,247,902 1,269,483 ------------- ------------- -----------
FBD HOLDINGS PLC
Condensed Consolidated Statement of Financial Position (continued)
At 30 June 2017
EQUITY AND LIABILITIES 30/06/17 30/06/16 31/12/16 (audited) (unaudited) (unaudited) Notes EUR000s EUR000s EUR000s Equity Ordinary share capital 7 21,409 21,409 21,409 Capital reserves 19,625 18,964 19,041 Retained earnings 179,264 151,875 166,866 Other reserves 18,232 18,232 18,232 Shareholders' funds - ordinary equity interests 238,530 210,480 225,548 Preference share capital 2,923 2,923 2,923 ------------- ------------- ------------------- Total Equity 241,453 213,403 228,471 Liabilities Insurance contract liabilities
Provision for unearned premiums 190,020 181,483 180,692 Claims outstanding 759,233 739,033 745,490 ------------- ------------- ------------------- 949,253 920,516 926,182 Other provisions 10,209 12,361 11,247 Convertible debt 51,807 50,647 51,136 Retirement benefit obligation - 3,202 - Deferred taxation liability 3,430 1,851 3,347 Payables 30,402 45,922 49,100 ------------- Total liabilities 1,045,101 1,034,499 1,041,012 ------------- ------------- ------------------- Total equity and liabilities 1,286,554 1,247,902 1,269,483 ------------- ------------- -------------------
FBD HOLDINGS PLC
Condensed Consolidated Statement of Cash Flows
For the half year ended 30 June 2017
Half year Half year ended 30/06/16 Year ended (unaudited) ended 31/12/16 (audited) 30/06/17 (unaudited) EUR000s EUR000s EUR000s Cash flows from operating activities Result before taxation 11,919 (3,652) 13,095 Adjustments for: (Profit)/Loss on disposal of investments held for trading (1,070) 4,999 2,596 Loss on investments available for sale 3,173 1,428 4,467 Interest and dividend income (7,696) (3,806) (14,233) Depreciation of property, plant and equipment 6,198 4,232 10,795 Share-based payment expense/(credit) 585 411 488 Revaluation of investment property - - (1,850) Revaluation of property, plant and equipment - - 330 Increase/(Decrease) in insurance contract liabilities 35,567 (3,433) (3,677) Increase in other provisions (1,038) 1,424 309 Profit on disposal of discontinued operation - (1,916) (1,916) -------------- -------------------------- --------------------------- Operating cash flows before movement in working capital 47,638 (313) 10,404 (Increase)/decrease in receivables and deferred acquisition costs (12,726) (4,647) 64 (Decrease)/increase in payables (19,079) (7,156) (17,252) Purchase of investments held for trading (282) (6,506) (13,996) Sale of investments held for trading 45,495 7,312 15,473 -------------- -------------------------- --------------------------- Cash generated from/(used in) operations 61,046 (11,310) (5,307) Interest and dividend income received 6,677 5,923 13,441 Income taxes refunded 59 4,257 5,561 -------------- -------------------------- --------------------------- Net cash generated from/(used in) operating activities 67,782 (1,130) 13,695 -------------- -------------------------- --------------------------- Cash flows from investing activities Purchase of available for sale investments (164,398) (211,231) (322,503) Sale of available for sale investments 53,820 160,792 188,746 Purchase of property, plant and equipment (3,427) (6,502) (12,113) Sale of property, plant and equipment 35 - 80 Decrease/(increase) in loans and advances 27 80 100 Decrease in deposits invested with banks 51,116 65,656 134,436 Cash inflow from sale of discontinued operation (net) - 1,930 1,930 -------------- -------------------------- --------------------------- Net cash (used in)/provided by investing activities (62,827) 10,725 (9,324) -------------- -------------------------- --------------------------- Cash flows from financing activities Ordinary and preference - (113) - dividends paid Dividends paid to non-controlling interests - (120) (120) Proceeds of re-issue of ordinary shares - - 66 Net cash (used in)/generated from financing activities - (233) (54) -------------- -------------------------- --------------------------- Net increase/(decrease) in cash and cash equivalents 4,955 9,362 4,317 Cash and cash equivalents at the beginning of the period 26,561 22,244 22,244 Cash and cash equivalents at the end of the period 31,516 31,606 26,561 -------------- -------------------------- ---------------------------
FBD HOLDINGS PLC
Condensed Consolidated Statement of Changes in Equity (UNAUDITED)
For the half year ended 30 June 2017
Ordinary Capital Retained Other Attributable Preference Non-controlling Total to share reserves earnings Reserves Ordinary share interests equity capital shareholders capital EUR000s EUR000s EUR000s EUR000s EUR000s EUR000s EUR'000 EUR000s ---------- --------- --------- --------- ------------- ----------- ---------------- -------- Balance at 1 January 2017 21,409 19,041 166,866 18,232 225,548 2,923 - 228,471 Result after taxation - - 10,311 - 10,311 - - 10,311 Other comprehensive income - - 2,087 - 2,087 - - 2,087 Total comprehensive income for the period 21,409 19,041 179,264 18,232 237,946 2,923 - 240,869 Recognition of share based payments - 584 - - 584 - - 584 Dividend paid to - - - - - - - - non-controlling interests
---------- --------- --------- --------- ------------- ----------- ---------------- -------- Balance at 30 June 2017 21,409 19,625 179,264 18,232 238,530 2,923 - 241,453 ---------- --------- --------- --------- ------------- ----------- ---------------- -------- Balance at 1 January 2016 21,409 18,553 157,670 18,232 215,864 2,923 451 219,238 Result after taxation - - (3,031) - (3,031) - (79) (3,110) Other comprehensive income - - (2,764) - (2,764) - - (2,764) Total comprehensive income for the period 21,409 18,553 151,875 18,232 210,069 2,923 372 213,364 Recognition of share based payments - 411 - - 411 - - 411 Dividend paid to non-controlling interests - - - - - - (120) (120) Disposal of subsidiary undertaking (note 5) - - - - - - (252) (252) ---------- --------- --------- --------- ------------- ----------- ---------------- -------- Balance at 30 June 2016 21,409 18,964 151,875 18,232 210,480 2,923 - 213,403 ---------- --------- --------- --------- ------------- ----------- ---------------- --------
FBD HOLDINGS PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the half year ended 30 June 2017
Note 1 Statutory information
The half yearly financial information is considered non-statutory financial statements for the purposes of the Companies Act 2014 and in compliance with section 340(4) of that Act we state that:
-- the financial information for the half year to 30 June 2017 does not constitute the statutory financial statements of the company;
-- the statutory financial statements for the financial year ended 31 December 2016 have been annexed to the annual return and delivered to the Registrar;
-- the statutory auditors of the company have made a report under section 391 Companies Act 2014 in respect of the statutory financial statements for year ended 31 December 2016; and
-- the matters referred to in the statutory auditors' report were unqualified, and did not include a reference to any matters to which the statutory auditors drew attention by way of emphasis without qualifying the report.
This half yearly financial report has not been audited but has been reviewed by the auditors of the Company.
Note 2 - Accounting policies
Basis of preparation
The annual financial statements of FBD Holdings plc are prepared in accordance with International Financial Reporting Standards ("IFRSs") as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with IAS 34 'Interim Financial Reporting', as adopted by the European Union.
Going concern
The Directors are satisfied that the Group has sufficient resources to continue in operation for a period of not less than twelve months from the date of this report. Accordingly, they continue to adopt the going concern basis of accounting in preparing the condensed financial statements.
Consistency of accounting policy
The accounting policies and methods of computation used by the Group to prepare the interim financial statements for the six month period ended 30 June 2017 are the same as those used to prepare the Group Annual Report for the year ended 31 December 2016 except as described below.
To align with industry practice the Group has reclassified claims handling expenses to net claims incurred from other underwriting expenses. This has had no impact on previously reported profit or equity.
There have been no new standards or amendments to standards adopted by the Group during the six months ended 30 June 2017 which have had a material impact on the Group.
FBD HOLDINGS PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the half year ended 30 June 2017
Standards and interpretations not yet effective
IFRS 9 Financial Instruments(1) IFRS 15 Revenue from Contracts with Customers(1) IFRS 16 Leases(2) IFRS 17 Insurance Contracts(3)
(1) Effective for annual periods on or after 1 January 2018, with earlier application permitted.
(2) Effective for annual periods on or after 1 January 2019, with earlier application permitted.
(3) Effective for annual periods on or after 1 January 2021, with earlier application permitted.
The Directors have reviewed the implication of the adoption of IFRS 9 and IFRS 15. The adoption of these Standards is not expected to have a material impact (other than presentation and disclosure) on the Financial Statements of the Group in future periods. The Directors are currently assessing the implications of the adoption of IFRS 16 and IFRS 17.
Critical accounting estimates and judgements in applying accounting policies
The critical accounting estimates and judgements used by the Group in applying accounting policies are the same as those used to prepare the Group Annual Financial Statements for the year ended 31 December 2016. While there have been some changes in estimates of amounts in the current financial period these changes do not have a significant impact on the results for the period.
Risks and uncertainties
The principal risks and uncertainties faced by the Group are outlined on pages 17-20 of the Group's Annual Financial Statements for the year ended 31 December 2016 and remain unchanged.
Note 3 - Segmental information
(a) Operating segments
The principal activities of the Group are underwriting of general insurance business and financial services. For management purposes, the Group is organised in two operating segments - underwriting and financial services. The profit earned by each segment is reported to the chief operating decision maker, the Group Chief Executive, for the purpose of resource allocation and assessment of segmental performance. Central administration costs and Directors' salaries are allocated based on actual activity. Restructuring costs and income taxation are direct costs of each segment. Discrete financial information is prepared and reviewed on a regular basis for these two segments. The accounting policies of the reportable segments are the same as the Group accounting policies. There has been no material change to the assets by reportable segment from the disclosure in the 2016 Annual Report.
FBD HOLDINGS PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the half year ended 30 June 2017
The following is an analysis of the Group's revenue and results from continuing operations by reportable segments:
Half year ended 30/06/2017 Financial Underwriting Services Total EUR000s EUR000s EUR000s Revenue 198,133 4,391 202,524 --------------- ---------- -------- Result before taxation 10,154 1,765 11,919 Income taxation (charge)/credit (1,269) (339) (1,608) --------------- ---------- -------- Result after taxation 8,885 1,426 10,311 --------------- ---------- -------- Half year ended 30/06/2016 Financial Underwriting Services Total EUR000s EUR000s EUR000s Revenue 193,740 4,439 198,179 --------------- ------------ -------- Result before taxation (4,579) (724) (5,303) Income taxation credit/(charge) 572 (30) 542 --------------- ------------ -------- Result after taxation (4,007) (754) (4,761) --------------- ------------ -------- Year ended 31/12/2016 Financial Underwriting Services Total EUR000s EUR000s EUR000s Revenue 388,461 8,542 397,003 --------------- ------------ -------- Result before taxation 9,102 2,340 11,442 Income taxation (charge)/credit (2,188) (227) (2,415) --------------- ------------ -------- Result after taxation 6,914 2,113 9,027 --------------- ------------ -------- (b) Geographical segments
The Group's operations are located in Ireland.
FBD HOLDINGS PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the half year ended 30 June 2017
Note 4 - Underwriting result
Adjusted(1) Adjusted(1) Half year Half year Year ended 30/06/17 (unaudited) ended ended 31/12/16 30/06/16 (unaudited) (audited) EUR000s EUR000s EUR000s Gross premium written 189,650 180,845 361,799 ----------------- -------------- ----------------- Net premium earned 158,931 152,020 308,226 Net claims incurred(1) (111,971) (114,955) (227,853) Motor Insurers Bureau of Ireland Levy (26) (4,998) (7,747) ----------------- -------------- ----------------- 46,934 32,067 72,626 ----------------- -------------- ----------------- Gross management expenses(1) (40,969) (35,702) (75,399) Deferred acquisition costs 5,352 (1,850) (2,541) Reinsurers' share of expenses 1,491 5,643 11,660 Broker commissions payable (1,736) (1,753) (3,126) ----------------- -------------- ----------------- Other Underwriting expenses (35,862) (33,662) (69,406) ----------------- -------------- ----------------- Underwriting result 11,072 (1,595) 3,220 ----------------- -------------- -----------------
(1) Adjusted: Claims handling expenses are now reflected in Net claims and benefits rather than Other underwriting expenses. Adjustments have been made to comparative periods to reflect this.
The Group's half yearly results are not subject to any significant impact arising from the seasonality of operations.
Note 5 - Discontinued operations
Half year Half year ended 30/06/17 (unaudited) ended Year ended 31/12/16 (audited) 30/06/16 (unaudited) EUR000s EUR000s EUR000s Passage East Ferry Company Ltd result for the period including profit on sale - 1,653 1,653 -------------- -------------- ------------ - 1,653 1,653 -------------- -------------- ------------
On 23 May 2016 the Group disposed of its 70% interest in the Passage East Ferry Company Limited.
FBD HOLDINGS PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the half year ended 30 June 2017
Note 6 - Dividends
There were no dividends paid in this period or in the prior year.
Note 7 - Ordinary share capital
Half year Half year Year ended 30/06/17 (unaudited) ended 30/06/16 ended (unaudited) 31/12/16 (audited) Number EUR000s EUR000s EUR000s (i) Ordinary shares of EUR0.60 each Authorised: At beginning and end of period 51,326,000 30,796 30,796 30,796 ------------ ---------------- ---------------- ----------- Issued and fully paid: At beginning and end of period 35,461,206 21,277 21,277 21,277 ------------ ---------------- ---------------- ----------- (ii) 'A' Ordinary shares of EUR0.01 each Authorised: At beginning and end of period 120,000,000 1,200 1,200 1,200 ------------ ---------------- ---------------- ----------- Issued and fully paid: At beginning and end of period 13,169,428 132 132 132 ------------ ---------------- ---------------- ----------- Total Ordinary Share Capital 21,409 21,409 21,409 ---------------- ---------------- -----------
The number of ordinary shares of EUR0.60 each held as treasury shares at 30 June 2017 was 795,005. At 30 June 2016 the number held was 813,084.
FBD HOLDINGS PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the half year ended 30 June 2017
Note 8 - Earnings/(Loss) 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:
Half year Half year Year ended ended ended 31/12/16 30/06/16 (audited) 30/06/17 (unaudited) (unaudited) EUR000s EUR000s EUR000s Earnings/(loss) Result for the period 10,311 (3,110) 10,680 Non-controlling interests - 79 79 -------------- ------------- ---------------- Result for the period - attributable to equity shareholders 10,311 (3,031) 10,759 Adjustments to exclude profit from discontinued operations - (1,653) (1,653) Result for the purpose of basic and diluted earnings per share (excluding discontinued operations) 10,311 (4,684) 9,106 -------------- Number of shares Weighted average number of ordinary shares for the purpose of basic earnings per share 34,666,201 34,648,122 34,654,611 Weighted average number of ordinary shares for the purpose of diluted earnings per share 34,793,837 34,648,122 34,782,247 -------------- ------------- ---------------- From continuing operations Cent Cent Cent Basic earnings/(loss) per share 30 (14) 26 -------------- ------------- ---------------- Diluted earnings/(loss) per share 30 (14) 26 -------------- ------------- ---------------- From discontinued operations Cent Cent Cent Basic earnings/(loss) per share - 5 5 ------- ----- ----- Diluted earnings/(loss) per share - 5 5 ------- ----- ----- Earnings/(loss) per share From continuing and discontinued Cent Cent Cent operations Basic earnings/(loss) per share 30 (9) 31 ----- ----- ----- Diluted earnings/(loss) per share 30 (9) 31 ----- ----- -----
The 'A' ordinary shares of EUR0.01 each that are in issue have no impact on the earnings per share calculation.
FBD HOLDINGS PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the half year ended 30 June 2017
Note 9 - Capital Commitments
Half year Half year Year ended 30/06/17 ended ended 30/06/16 31/12/16 (unaudited) (audited) (unaudited) EUR000s EUR000s EUR000s Capital commitments at period end authorised by the Directors but not provided for in the Financial Statements: Contracted for - 3,704 - ---------------- -------------- ------------ Not contracted for - - - ---------------- -------------- ------------
The above capital commitment related to an investment in the underwriting policy administration system that commenced in 2013. Rollout of the new system commenced in late June 2016.
Note 10 - Retirement Benefit Plan Assets/(Obligation)
The Group operates a funded defined benefit retirement scheme for qualifying employees that is closed to future accrual and new entrants.
The amounts recognised in the Statement of Financial Position are as follows:
30/06/17 30/06/16 31/12/16 (unaudited) (unaudited) (audited) EUR000s EUR000s EUR000s Fair value of plan assets 98,200 122,000 99,602 Present value of defined benefit obligation (85,700) (125,202) (90,887) ------------ ------------ ---------- Net retirement plan asset/(obligation) 12,500 (3,202) 8,715 ------------ ------------ ----------
FBD HOLDINGS PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the half year ended 30 June 2017
Note 11 - Financial Instruments and Fair Value Measurement
(a) Financial Instruments 30/06/17 30/06/16 31/12/16 (unaudited) (unaudited) (audited) EUR000s EUR000s EUR000s Financial Assets At amortised cost: Deposits with banks 185,781 305,676 236,897 At fair value: Available for sale investments - unquoted investments 844 844 844 Available for sale investments - quoted debt securities 735,639 547,166 628,654 ------------ ------------ ---------- Available for sale investments 736,483 548,010 629,498 ------------ ------------ ---------- Investments held for trading - quoted shares 21,928 21,643 24,188 Investments held for trading - quoted debt securities - 43,038 41,956 Investments held for trading - UCITs 24,231 23,890 24,158 Investments held for trading - unquoted - - - debt securities ------------ ------------ ---------- Investments held for trading 46,159 88,571 90,302 ------------ ------------ ---------- At cost: Loans 705 752 732 Cash and cash equivalents 31,516 31,606 26,561 ------------ ------------ ---------- Financial Liabilities At amortised cost: Convertible debt 51,807 50,647 51,136 ------------ ------------ ---------- (b) Fair value measurement
The following table compares the fair value of financial assets and liabilities with their carrying values:
30/06/17 30/06/17 30/06/16 30/06/16 31/12/16 31/12/16 (unaudited) (unaudited) (unaudited) (unaudited) (audited) (audited) Fair Carrying Fair Carrying Fair Carrying value value value value value value EUR000s EUR000s EUR000s EUR000s EUR000s EUR000s Financial assets Loans 846 705 752 752 878 732 Financial investments 968,423 968,423 942,257 942,257 956,697 956,697 Financial liabilities Convertible Debt 54,880 51,807 50,647 50,647 54,880 51,136
The carrying amount of the following financial assets and liabilities is considered a reasonable approximation of their fair value:
-- Other receivables -- Cash and cash equivalents -- Payables
FBD HOLDINGS PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the half year ended 30 June 2017
The following tables provide an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable.
-- Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities.
-- Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
-- Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). Among the valuation techniques used are net asset or net book value or the net present value of future cash flows based on conservative operating projections.
30 June 2017 (unaudited) Level Level Level 3 Total 1 2 EUR000s EUR000s EUR000s EUR000s Assets Loans - 846 - 846 Investment property - 16,400 - 16,400 Other receivables - 15,905 - 15,905 Financial assets Investments held for trading - quoted shares 21,928 - - 21,928 Investments held for trading - UCIT Funds 24,231 - - 24,231 AFS(1) investments - quoted debt securities 735,639 - - 735,639 AFS(1) investments - unquoted investments - - 844 844 Deposits with banks 185,781 - - 185,781 Cash and cash equivalents 31,516 - - 31,516 -------- -------- -------- ---------- Total assets 999,095 33,151 844 1,033,090 -------- -------- -------- ---------- Liabilities Convertible debt - 54,880 - 54,880 -------- -------- -------- ---------- Total liabilities - 54,880 - 54,880 -------- -------- -------- ----------
(1) Available for sale
FBD HOLDINGS PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the half year ended 30 June 2017
30 June 2016 (unaudited) Level 1 Level Level 3 Total 2 EUR000s EUR000s EUR000s EUR000s Assets Loans - 752 - 752 Investment property - 14,550 - 14,550 Property held for own use - 16,350 - 16,350 Financial assets Investments held for trading - quoted shares 21,643 - - 21,643 Investments held for trading - quoted debt securities 43,038 - - 43,038 Investments held for trading - UCIT Funds 23,890 - - 23,890 AFS(1) investments - quoted debt securities 547,166 - - 547,166 AFS(1) investments - unquoted investments - - 844 844 Deposits with banks 305,676 - - 305,676 Cash and cash equivalents 31,606 - - 31,606 -------- -------- -------- ---------- Total assets 973,019 31,652 844 1,005,515 -------- -------- -------- ---------- Liabilities
Convertible debt - 50,647 - 50,647 -------- -------- -------- ---------- Total liabilities - 50,647 - 50,647 -------- -------- -------- ----------
(1) Available for sale
31 December 2016 (audited) Level 1 Level Level 3 Total 2 EUR000s EUR000s EUR000s EUR000s Assets Loans - 878 - 878 Investment property - 16,400 - 16,400 Property held for own use - 15,940 - 15,940 Financial assets Investments held for trading - quoted shares 24,188 - - 24,188 Investments held for trading - quoted debt securities 41,956 - - 41,956 Investments held for trading - UCITs 24,158 - - 24,158 AFS(1) investments - quoted debt securities 628,654 - - 628,654 AFS(1) investments - unquoted investments - - 844 844 Deposits with banks 236,897 - - 236,897 Cash and cash equivalents 26,561 - - 26,561 -------- -------- -------- ---------- Total assets 982,414 33,218 844 1,016,476 -------- -------- -------- ---------- Liabilities Convertible debt - 54,880 - 54,880 -------- -------- -------- ---------- Total liabilities - 54,880 - 54,880 -------- -------- -------- ----------
(1) Available for sale
FBD HOLDINGS PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the half year ended 30 June 2017
A reconciliation of Level 3 fair value measurement of financial assets is shown in the table below
30/06/17 30/06/16 31/12/16 (unaudited) (unaudited) (audited) EUR000s EUR000s EUR000s Opening balance Level 3 financial assets 844 844 844 Additions - - - Disposals - - - Unrealised gains/(losses) recognised in Consolidated Income Statement - - - Closing balance Level 3 financial assets 844 844 844 ------------ ------------ ----------
Available for sale investments grouped into Level 3 consist of a number of small unquoted investments. The values attributable to these investments are derived from a number of valuation techniques including net asset or net book value or the net present value of future cash flows based on conservative operating projections. A change in one or more of these inputs could have an impact on valuations. The maximum exposure the Group has in relation to Level 3 valued financial assets at 30 June 2017 is EUR844,000 (30 June 2016: EUR844,000; 31 December 2016: EUR844,000).
Note 12 - Transactions with related parties
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 Group) comprises the Board of Directors and Company Secretary of FBD Holdings plc and the members of the Executive Management Team. Full disclosure in relation to the compensation of the Board of Directors and details of Directors' share options are provided in the Report on Directors' Remuneration in the 2016 Annual Report. An analysis of share-based payment to key management personnel is also included in Note 38 of the 2016 Annual Report.
Note 13 - Contingent liabilities and contingent assets
There were no contingent liabilities or contingent assets at 30 June 2017, 30 June 2016 or 31 December 2016.
Note 14 - Information
This half yearly report and the Annual Report for the year ended 31 December 2016 are available on the Company's website at www.fbdgroup.com.
Note 15 - Approval of Half Yearly Report
The half yearly report was approved by the Board of Directors of FBD Holdings plc on 3 August 2017.
FBD HOLDINGS PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the half year ended 30 June 2017
RESPONSIBILITY STATEMENT
The Directors are responsible for preparing the Half Yearly Financial Report in accordance with the Transparency (Directive 2004/109/EC) Regulations 2007, the related Transparency Rules of the Central Bank of Ireland and with IAS 34, Interim Financial Reporting as adopted by the European Union.
We confirm that to the best of our knowledge:
a) the Group condensed set of interim financial statements have been prepared in accordance with IAS 34 "Interim Financial Reporting" as adopted by the European Union;
b) the interim management report includes a fair review of the important events that have occurred during the first six months of the financial year, and their impact on the condensed set of interim financial statements and the principal risks and uncertainties for the remaining six months of the financial year;
c) the interim management report includes a fair review of related party transactions that have occurred during the first six months of the current financial year and that have materially affected the financial position or the performance of the Group during that period, and any changes in the related parties' transactions described in the last Annual Report that could have a material effect on the financial position or performance of the Group in the first six months of the current financial year.
On behalf of the Board
Liam Herlihy Fiona Muldoon Chairman Group Chief Executive
3 August 2017
ALTERNATIVE PERFORMANCE MEASURES (APM's)
The Group uses the following alternative performance measures: Loss ratio, expense ratio, combined operating ratio, annualised 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.
Annualised 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:
Adjusted(1) Adjusted(1) Half year Half year Year ended ended 30/06/16 ended 31/12/16 30/06/17 (unaudited) (audited) (unaudited) EUR000s EUR000s EUR000s Loss ratio Net claims and benefits(1) 111,971 114,955 227,853 Movement in other provisions 26 4,998 7,747 -------------- ---------------- Total claims incurred 111,997 119,953 235,600 Net premium earned 158,931 152,020 308,226 -------------- ---------------- ---------------- Loss ratio (Total claims incurred/Net premium earned) 70.5% 78.9% 76.4% -------------- Expense ratio Other underwriting expenses(1) 35,862 33,662 69,406 Net premium earned 158,931 152,020 308,226 -------------- ---------------- ---------------- Expense ratio (Other underwriting expenses/Net premium earned) 22.6% 22.1% 22.6% -------------- ---------------- ---------------- Combined operating ratio % % % Loss ratio 70.5% 78.9% 76.4% Expense ratio 22.6% 22.1% 22.6% -------------- ---------------- ---------------- Combined operating ratio (Loss ratio + Expense ratio) 93.1% 101.0% 99.0% -------------- ---------------- ----------------
Annualised investment return EUR000s EUR000s EUR000s Investment return recognised in consolidated income statement 3,898 271 8,338 Investment return recognised in statement of comprehensive income (423) 9,161 10,371 -------------- ---------------- ---------------- Total investment return 3,475 9,432 18,709 Average underwriting investment assets 1,033,507 984,244 991,152 Investment return (Total investment return/Average underwriting investment assets) 0.7%(2) 1.9%(2) 1.9% -------------- ---------------- ---------------- Net asset value per share (NAV per share) EUR000s EUR000s EUR000s Shareholders' funds - equity interests 238,530 210,480 225,548 -------------- ---------------- ---------------- Number of shares Weighted average number of ordinary shares 34,666,201 34,648,122 34,654,611 -------------- ---------------- ---------------- Cent Cent Cent Net asset value per share (Shareholders funds /Weighted average number of ordinary shares) 688 607 651 -------------- ---------------- ----------------
(1) Adjusted: Claims handling expenses are now reflected in Net claims and benefits rather than Other underwriting expenses. Adjustments have been made to comparative periods to reflect this.
(2) Annualised
Independent review report to FBD Holdings plc
Report on the condensed consolidated interim financial statements
Our conclusion
We have reviewed FBD Holdings plc's condensed consolidated interim financial statement (the "interim financial statements") in half-yearly report of FBD Holdings plc for the six month period ended 30 June 2017. Based on our review, nothing has come to our attention that causes us to believe that the interim financial statements are not prepared, in all material respects, in accordance with International Accounting Standard 34, Interim Financial Reporting, as adopted by the European Union and the Transparency (Directive 2004/109/EC) Regulations 2007 and the Transparency Rules of the Central Bank of Ireland.
What we have reviewed
The interim financial statements, comprise:
-- the condensed consolidated statement of financial position as at 30 June 2017; -- the condensed consolidated income statement for the period then ended;
-- the condensed consolidated statement of comprehensive income for the period then ended;
-- the condensed consolidated statement of cash flows for the period then ended;
-- the condensed consolidated statement of changes in equity for the period then ended; and
-- the explanatory notes to the interim financial statements.
The interim financial statements included in the half-yearly report have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting, as adopted by the European Union and the Transparency (Directive 2004/109/EC) Regulations 2007 and the Transparency Rules of the Central Bank of Ireland.
As disclosed in note 2 to the interim financial statements, the financial reporting framework that has been applied in the preparation of the full annual financial statements of the group is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union.
Responsibilities for the interim financial statements and the review
Our responsibilities and those of the directors
The half-yearly report, including the interim financial statements, is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly report in accordance with the Transparency (Directive 2004/109/EC) Regulations 2007 and the Transparency Rules of the Central Bank of Ireland.
Our responsibility is to express a conclusion on the interim financial statements in the half-yearly report based on our review. This report, including the conclusion, has been prepared for and only for the company for the purpose of complying with the Transparency (Directive 2004/109/EC) Regulations 2007 and the Transparency Rules of the Central Bank of Ireland and for no other purpose. We do not, in giving this conclusion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
What a review of interim financial statements involves
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity, issued by the Auditing Practices Board for use in the United Kingdom and Ireland. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.
A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (Ireland) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
We have read the other information contained in the half-yearly report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the interim financial statements.
Paraic Joyce
for and on behalf of PricewaterhouseCoopers
Chartered Accountants and Statutory Audit Firm
Dublin
3 August 2017
(a) The maintenance and integrity of the FBD Holdings plc website is the responsibility of the directors; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.
(b) Legislation in the Republic of Ireland governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR OKNDBDBKBQFK
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August 04, 2017 02:01 ET (06:01 GMT)
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