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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 : 3816W
FBD Holdings PLC
01 August 2018
FBD HOLDINGS PLC
1 August 2018
FBD HOLDINGS PLC
Half yearly Report
For the Six Months ended 30 June 2018
KEY HIGHLIGHTS
-- Profit before tax of EUR18m
-- Combined Operating Ratio ("COR") of 88.6% includes net of reinsurance Storm Emma costs of EUR6.6m and positive prior year reserve development of EUR6.0m.
-- Gross Written Premium up 1% to EUR192m -- Half Year annualised Return On Equity (ROE) of 12% -- Careful growth and disciplined underwriting delivers excellent underwriting profits
o Premium and new business policy count growth
o Reinsurance program has protected from significant adverse weather
o Digital enhancements to FBD.ie improving customer experience
o New Dublin office on Baggot Street and ongoing investment in nationwide branch network
Hot Features
Premium
2018 2017
FINANCIAL SUMMARY EUR000s EUR000s
Gross written premium 191,985 189,650
Underwriting profit 18,934 11,072
Profit before taxation 18,423 11,919
Loss ratio 63.3% 70.5%
Expense ratio 25.3% 22.6%
Combined operating ratio 88.6% 93.1%
Cent Cent
Basic earnings per share 46 30
Net asset value per share 800 688
-- Gross Written Premium of EUR192m, EUR2m higher than 2017 (EUR190m). Strong customer retention combined with increased new business in Consumer, Commercial and Farm.
-- Net profit before tax of EUR18.4m, compared to EUR11.9m in 2017.
-- COR of 88.6% compared to 93.1% in 2017. Includes positive prior year development of EUR6.0m and net Storm Emma costs of EUR6.6m.
-- Annualised total investment return of -0.4% (2017: 0.7%)
-- Expense ratio of 25.3%, 2.7% higher than last year primarily as a result of the once-off impact in 2017 of the closure of the property reinsurance surplus treaty.
-- Investment returns continue to be poor in a volatile environment emphasising the need for continued underwriting discipline.
Commenting on these results Fiona Muldoon, Group Chief Executive, said:
"This is a very strong set of results for the first half of 2018 particularly in the context of a major snow storm in March. Despite adverse weather, challenging investment returns and a competitive market, the team has delivered a healthy profit of EUR18m for the first half of the year. We are pleased with our new business levels and we continue to build our business in Farm, Commercial and Consumer through our quality products and our direct relationships with our customers.
The cost of injury claims remains a challenge for Irish customers. We look forward to the Personal Injuries Commission report and we urge the Government to follow up in order to provide a lower cost, sustainable claims environment for the benefit of all insurance customers particularly Irish businesses. We continue to work hard to ensure that all new proposals will deliver for Irish farmers, businesses and consumers, who continue to bear the cost of significantly higher premiums than those seen in other countries.
We were delighted to open our Baggot Street Branch last week and we will use this office as a base to offer commercial insurance to many Dublin based businesses. We are also looking forward to the launch of our motor insurance partnership with Post Insurance in the coming months. "
The Group made an announcement on 29 June 2018 in respect of certain matters concerning the Chief Executive. The process is currently on-going. We are working to bring it to a conclusion and at this time we have no further update.
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 34 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 ID FBH LN
OVERVIEW
The results for the first half of 2018 show good new business growth and high retention levels with a continued focus on underwriting discipline. As we celebrate our 50(th) year in business FBD continues to deliver sustainable shareholder returns through growth in book value and strong underwriting discipline. The Group reported a gross written premium increase of 1% to EUR192.0m (2017: EUR189.7m), profit before tax of EUR18.4m (2017: EUR11.9m) including an underwriting profit of EUR18.9m (2017: EUR11.1m). The underwriting profit includes net costs for Storm Emma of EUR6.6m after reinsurance recoveries and reinsurance reinstatement premia.
UNDERWRITING
Premium income
Gross written premium increased by EUR2.3m to EUR192.0m (2017: EUR189.7m). All our main channels reported premium increases as we carefully grow the business with underlying performance remaining stable.
New business volumes grew by 21% compared to the second half of 2017 and increased by 16% on the first half of 2017. The main increases are seen in personal lines, small business and farm products. Retention remains strong as we maintain underwriting discipline while growing in our targeted areas.
Reinsurance
Ireland has suffered two large natural catastrophe events over the 2017/2018 winter that tested our reinsurance program. It responded well, providing effective cover for these events (one in October 2017 and one in March 2018). Under the 2018 arrangements we believe we have limited further net exposure to additional significant adverse weather events in 2018.
Claims
Net claims incurred were EUR104.7m (2017: EUR112.0m). Positive prior year reserve development of EUR6.0m compares to EUR1.9m in 2017. Property notifications increased 23% in the first half of 2018 as a result of weather claims, particularly Storm Emma.
The Group MIBI levy incurred was EUR2.1m (2017: EUR0.1m). The 2018 MIBI charge includes the release of an accrual of EUR1.8m for a previously anticipated earlier introduction of the 2% levy for failed insurers for which legislation is still awaited. The 2017 figure includes a MIBI reserve release of EUR5.6m due to the Supreme Court ruling on the "Setanta" case. The MIBI levy is calculated based on the Group's expected share of the motor market for 2018 and the estimated levy call which will be made by MIBI.
Claims Environment
The claims environment has moderated though inflationary pressure is still evident. The average cost of claims continues to increase with higher levels of inflation observed in lower value injury settlements. Inflationary pressure is evident in property and motor claims as increased construction activity increases labour costs and newer cars cost more to repair. We note an increase in Employer's Liability claim frequency in the period and we are monitoring this carefully to establish if this is a shift in the underlying trend.
The enactment by the Government of the PIAB (Amendment) Bill to tackle the non-co-operation of claimants and their legal representatives with the Injuries Board is still awaited. This legislation is necessary to reduce the claimant rejection rate and lower the cost of claims.
We welcome the amendment to the Civil Liability & Courts Act where a judge can dismiss a claim if a claimant gives false evidence having provided a sworn affidavit. This change may act as a deterrent for dishonest or false claims.
In the latest report published by the Cost of Insurance Working Group one out of four actions was delivered for Q1 2018. Work is continuing on the integrated insurance fraud database and the Garda Automatic Number Plate Recognition (ANPR) system to detect uninsured drivers. In 2019, the National Claims Information Database should provide analysis of annual claims' trends of motor insurance claims.
Weather, Claims Frequency and Large Claims
In March a combination of snow and high wind gave rise to blizzard like conditions impacting most parts of the country. FBD received almost 1,200 claims in respect of Storm Emma with an approximate cost of EUR6.6m net of all reinsurance recoveries and reinstatement premia.
There is a stabilisation in motor injury frequency following reductions in 2016 and 2017. This is in line with the stabilisation of our policy count generally.
The gross cost of large claims in the first half of 2018 (greater than EUR0.5m) is EUR24m which is marginally higher than the five year average. In particular there is a large number of tractor claims in 2018.
Expenses
The Group's expense ratio was 25.3% (2017: 22.6%). Other underwriting expenses were EUR41.9m, an increase of EUR6m. The majority of the increase is driven by a one time reinsurance adjustment of EUR4.6m in 2017 on the closure of the property surplus treaty. The balance reflects an increase in costs including additional IT spend in respect of the work required for the introduction of the General Data Protection Regulation (GDPR).
General
FBD's Combined Operating Ratio ("COR") was 88.6% (2017: EUR93.1%) generating an underwriting profit of EUR18.9m (2017: EUR11.1m).
Investment Return
FBD's total annualised investment return for the first six months of 2018 was -0.41% (2017: 0.68%), with 0.25% (2017: 0.77%) recognised in the Consolidated Income Statement and -0.66% (2017: -0.09%) recognised in the Consolidated Statement of Other Comprehensive Income (OCI). The returns are a reflection of the challenges experienced in investment markets during H1 2018. The negative returns in OCI are driven by credit spreads widening more generally on the corporate bond portfolio and spread widening on sovereign bonds following the political turmoil in Italy and in a generally uncertain investment environment.
FINANCIAL SERVICES
The Group's financial services operations delivered a profit before tax of EUR1.4m for the period (2017: EUR1.8m) 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) net of certain holding company costs.
Profit per share
The diluted profit per share was 44 cent per ordinary share, compared to 30 cent per ordinary share in 2017.
Dividend
The shareholders approved the final dividend proposed by the Board for 2017 at the Annual General Meeting on 4 May 2018 and the dividend was paid on 11 May 2018.
STATEMENT OF FINANCIAL POSITION
Capital position
Ordinary shareholders' funds at 30 June 2018 amounted to EUR277.5m (December 2017: EUR271.6m). The increase in shareholders' funds is mainly attributable to the following:
-- Profit after tax for the half year of EUR16.1m -- Offset by EUR8.6m dividend payments
-- Mark to market losses on Available for Sale investments of EUR3.0m after tax recognised in the statement of other comprehensive income
-- Share based payments of EUR0.5m
-- A decrease in the defined benefit pension scheme obligation of EUR0.9m after tax following a 5bps decrease in the assumed inflation rate to 1.70%
Net assets per ordinary share are 800 cent, compared to 784 cent per share at 31 December 2017.
Investment Allocation
The Group adopts a conservative investment policy where it ensures that its technical reserves are well matched by cash and fixed interest securities of similar nature and duration. FBD has increased its allocation to Risk Assets by EUR36m to approximately EUR100m. This is in line with the company's current Strategic Asset Allocation framework.
The allocation of the Group's investment assets is as follows:
30 June 2018 31 December 2017
EURm % EURm %
Corporate bonds 500 47% 499 47%
Government bonds 244 23% 259 25%
Deposits and cash 213 20% 230 22%
Equities 27 3% 22 2%
Investment property 18 2% 18 2%
Other risk assets 55 5% 24 2%
1,057 100% 1,052 100%
-------- ------ ---------- --------
Solvency
The audited Solvency Capital Ratio (SCR) of 164% at 31 December 2017 was previously reported in the Solvency and Financial Condition Report in May. The Group is committed to maintaining a strong solvency position.
OUTLOOK
The results for the first half of 2018 are strong driven by an excellent underwriting profit and modest careful growth in premium income in line with the Group's overall strategy. The Group is in a strong position with a clear strategy to deliver sustainable growth in book value through underwriting discipline and careful risk selection. The combined operating ratio of 88.6% is a direct result of this continued underwriting discipline and improved rate adequacy.
The claims environment continues to evidence some signs of moderation although inflationary pressure is still evident. FBD supports the industry's investment in a new Garda unit to investigate insurance fraud. We are committed to actively tackling fraud and delivering benefits to customers. The Cost of Insurance Working Group must also continue to implement its recommendations in order to deliver for customers.
Winter weather had a huge impact on our farming community and our customers continue to see the value of FBD's strong cover and claims paying ability. FBD paid approximately one quarter of all claims nationally for Storm Emma. In the personal injury area, farm safety remains a key focus and an on-going significant investment for the group. In particular this year we have already seen an unusual number of large tractor claims. FBD continues to work hand in hand with farm safety organisations to educate and change on-farm behaviour in order to help mitigate the personal and financial impact of such tragic accidents on Ireland's farm families.
Complex negotiations continue around Brexit and the likely impact is still uncertain for Irish business. We remain confident in the resilience of Irish businesses and Irish farmers to navigate the challenges ahead.
The Group's objective is to deliver sustainable long-term shareholder value through careful growth in book value. We target a low double-digit return on equity ("ROE") through the cycle.
FBD HOLDINGS PLC
Condensed Consolidated Income Statement
For the half year ended 30 June 2018
Half year Half year Year ended 31/12/17 (audited)
ended ended
30/06/18 30/06/17
Notes (unaudited) (unaudited)
EUR000s EUR000s EUR000s
Revenue 3 204,261 202,524 397,741
------------- ------------- ------------------------------
Income
Gross premium written 191,985 189,650 372,459
Reinsurance premiums (20,260) (7,446) (27,267)
------------- ------------- ------------------------------
Net premium written 171,725 182,204 345,192
Change in provision for unearned
premiums (6,215) (23,273) (19,260)
------------- ------------- ------------------------------
Net premium earned 165,510 158,931 325,932
Net investment return 1,297 3,898 9,361
Financial services income 4,548 4,391 8,733
------------- ------------- ------------------------------
Total income 171,355 167,220 344,026
Expenses
Net claims and benefits (102,596) (111,971) (203,144)
Other underwriting expenses 4 (41,873) (35,862) (75,908)
Movement in MIBI Levy (2,107) (26) (1,945)
Financial services expenses (3,163) (2,633) (4,200)
Restructuring and other costs - (1,717) (1,715)
Finance costs (3,193) (3,092) (6,298)
Revaluation of property, plant and
equipment - - (1,080)
Result before taxation 18,423 11,919 49,736
Income taxation charge (2,308) (1,608) (7,040)
------------- ------------- ------------------------------
Result for the period 16,115 10,311 42,696
------------- ------------- ------------------------------
Attributable to:
Equity holders of the parent 16,115 10,311 42,696
FBD HOLDINGS PLC
Condensed Consolidated Income Statement
For the half year ended 30 June 2018
Half year Half year Year ended 31/12/17 (audited)
ended ended 30/06/17
30/06/18 (unaudited)
(unaudited)
Notes
Earnings/(loss) Cent Cent Cent
per share
From continuing
operations
Basic 7 46 30 123
---------------- ------------------- ------------------------------
Diluted 7 44(1) 30(1) 111(1)
---------------- ------------------- ------------------------------
(1) Diluted earnings per share reflects the potential conversion of the convertible debt and share based payments. An adjustment has been made to diluted earnings at 30 June 2017 and 31 December 2017 to take account of the impact of the convertible debt conversion.
FBD HOLDINGS PLC
Condensed Consolidated Statement of Comprehensive Income
For the half year ended 30 June 2018
Half year Half year Year ended
ended 30/06/17 31/12/17
(audited)
ended 30/06/18 (unaudited)
(unaudited)
EUR000s EUR000s EUR000s
Result for the period 16,115 10,311 42,696
----------------- ----------------- ----------------
Items that will or may be reclassified
to profit or loss in subsequent
periods:
Net (loss)/gain on available for
sale assets (3,474) (423) 2,807
Taxation credit/(charge) relating
to items that will or may be reclassified
to profit or loss in subsequent
periods 434 53 (351)
Items that will not be reclassified
to profit or loss in subsequent
periods:
Actuarial gain on retirement benefit
obligations 1,002 2,808 275
Taxation charge relating to items
not to be reclassified in subsequent
periods (125) (351) (34)
----------------- ----------------- ----------------
Other comprehensive (expense)/income
after taxation (2,163) 2,087 2,697
----------------- ----------------- ----------------
Total comprehensive income for the
period 13,952 12,398 45,393
----------------- ----------------- ----------------
Attributable to:
Equity holders of the parent 13,952 12,398 45,393
FBD HOLDINGS PLC
Condensed Consolidated Statement of Financial Position
At 30 June 2018
ASSETS 30/06/18 30/06/17 31/12/17
(unaudited) (unaudited) (audited)
Notes EUR000s EUR000s EUR000s
Property, plant and equipment 66,093 70,188 68,251
Investment property 18,000 16,400 18,000
Loans 574 705 681
Deferred taxation asset 4,167 10,485 5,467
Financial assets
Available for sale investments 744,224 736,483 758,687
Investments held for trading 81,228 46,159 45,347
Deposits with banks 178,286 185,781 195,985
------------- ------------- -----------
1,003,738 968,423 1,000,019
------------- ------------- -----------
Reinsurance assets
Provision for unearned premiums 6 4 4
Claims outstanding 93,326 70,714 90,561
------------- ------------- -----------
93,332 70,718 90,565
------------- ------------- -----------
Retirement benefit asset 10,900 12,500 9,774
Current taxation asset 3,934 4,103 3,934
Deferred acquisition costs 31,621 30,355 31,366
Other receivables 68,518 71,161 64,020
Cash and cash equivalents 35,572 31,516 27,176
------------- ------------- -----------
Total assets 1,336,449 1,286,554 1,319,253
------------- ------------- -----------
FBD HOLDINGS PLC
Condensed Consolidated Statement of Financial Position (continued)
At 30 June 2018
EQUITY AND LIABILITIES 30/06/18 30/06/17 31/12/17 (audited)
(unaudited) (unaudited)
Notes EUR000s EUR000s EUR000s
Equity
Ordinary share capital 6 21,409 21,409 21,409
Capital reserves 20,225 19,625 19,726
Retained earnings 217,609 179,264 212,259
Other reserves 18,232 18,232 18,232
Equity attributable to ordinary equity holders of
the parent 277,475 238,530 271,626
Preference share capital 2,923 2,923 2,923
------------- ------------- -------------------
Total Equity 280,398 241,453 274,549
Liabilities
Insurance contract liabilities
Provision for unearned premiums 192,225 190,020 186,008
Claims outstanding 765,091 759,233 765,012
------------- ------------- -------------------
957,316 949,253 951,020
Other provisions 7,331 10,209 6,647
Convertible debt 53,268 51,807 52,525
Deferred taxation liability 4,543 3,430 3,845
Payables 33,593 30,402 30,667
-------------
Total liabilities 1,056,051 1,045,101 1,044,704
------------- ------------- -------------------
Total equity and liabilities 1,336,449 1,286,554 1,319,253
------------- ------------- -------------------
FBD HOLDINGS PLC
Condensed Consolidated Statement of Cash Flows
For the half year ended 30 June 2018
Half year Half year ended 30/06/17 Year
ended (unaudited) ended 31/12/17 (audited)
30/06/18
(unaudited)
EUR000s EUR000s EUR000s
Cash flows from operating
activities
Result before taxation 18,423 11,919 49,736
Adjustments for:
Loss/(profit) on disposal of
investments held for trading 1,960 (1,070) (1,685)
Loss on investments available
for sale 2,368 3,173 5,981
Interest and dividend income (3,675) (7,696) (12,735)
Depreciation of property, plant
and equipment 6,125 6,198 11,426
Share-based payment expense 499 585 685
Revaluation of investment
property - - (1,600)
Revaluation of property, plant
and equipment - - 1,080
Increase in insurance contract
liabilities 3,529 35,567 17,486
Increase/(decrease) in other
provisions 684 (1,038) (4,600)
Operating cash flows before
movement in working capital 29,913 47,638 65,774
Increase in receivables and
deferred acquisition costs (6,927) (12,726) (8,094)
Increase/(decrease) in payables 5,994 (16,629) (13,084)
Interest payments on convertible
debt (2,450) (2,450) (4,900)
Purchase of investments held for
trading (82,916) (282) (958)
Sale of investments held for
trading 45,075 45,495 47,597
---------------- -------------------------- ---------------------------
Cash (used in) / generated from
operations (11,311) 61,046 86,335
Interest and dividend income
received 5,851 6,677 13,218
Income taxes refunded - 59 228
---------------- -------------------------- ---------------------------
Net cash (used in) / generated
from operating activities (5,460) 67,782 99,781
---------------- -------------------------- ---------------------------
Cash flows from investing
activities
Purchase of available for sale
investments (49,075) (164,398) (258,355)
Sale of available for sale
investments 57,694 53,820 125,989
Purchase of property, plant and
equipment (3,967) (3,427) (7,869)
Sale of property, plant and
equipment - 35 106
Decrease in loans and advances 107 27 51
Decrease in deposits invested
with banks 17,699 51,116 40,912
Net cash provided by / (used in)
investing activities 22,458 (62,827) (99,166)
---------------- -------------------------- ---------------------------
Cash flows from financing
activities
Ordinary and preference (8,602) - -
dividends paid
Net cash used in financing (8,602) - -
activities
---------------- -------------------------- ---------------------------
Net increase in cash and cash
equivalents 8,396 4,955 615
Cash and cash equivalents at the
beginning of the period 27,176 26,561 26,561
Cash and cash equivalents at the
end of the period 35,572 31,516 27,176
---------------- -------------------------- ---------------------------
FBD HOLDINGS PLC
Condensed Consolidated Statement of Changes in Equity (UNAUDITED)
For the half year ended 30 June 2018
Ordinary Capital Retained Other Attributable to Preference Total
share reserves earnings Reserves Ordinary shareholders share equity
capital capital
EUR000s EUR000s EUR000s EUR000s EUR000s EUR000s EUR000s
--------- --------- -------------------- ------------------- ------------------------------------------ ----------- --------
Balance at 1
January 2018 21,409 19,726 212,259 18,232 271,626 2,923 274,549
Result after
taxation - - 16,115 - 16,115 - 16,115
Other - - (2,163) - (2,163) - (2,163)
comprehensive
income
21,409 19,726 226,211 18,232 285,578 2,923 288,501
Dividends paid
and approved
on ordinary
and
preference
shares - - (8,602) - (8,602) - (8,602)
Recognition of
share based
payments - 499 - - 499 - 499
Balance at 30
June 2018 21,409 20,225 217,609 18,232 277,475 2,923 280,398
--------- --------- -------------------- ------------------- ------------------------------------------ ----------- --------
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
21,409 19,041 179,264 18,232 237,946 2,923 240,869
Recognition of
share based
payments - 584 - - 584 - 584
Balance at 30
June 2017 21,409 19,625 179,264 18,232 238,530 2,923 241,453
--------- --------- -------------------- ------------------- ------------------------------------------ ----------- --------
FBD HOLDINGS PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the half year ended 30 June 2018
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 2018 does not constitute the statutory financial statements of the company;
-- the statutory financial statements for the financial year ended 31 December 2017 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 2017; 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 2018 are the same as those used to prepare the Group Annual Report for the year ended 31 December 2017 except as described below.
Standards adopted in the period
The Group has adopted IFRS 15 Revenue from Contracts with Customers during the six months ended 30 June 2018. The adoption of this standard has not had a material impact on the Group as the revenue from contracts with customers other than insurance contracts is 1% of total Revenue for the first six months of 2018.
There have been no other new standards or amendments to standards adopted by the Group during the six months ended 30 June 2018 which had a material impact on the Group.
FBD HOLDINGS PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the half year ended 30 June 2018
Standards and interpretations not yet effective
IFRS 16 Leases(1) IFRS 17 Insurance Contracts(2)
(1) Effective for annual periods on or after 1 January 2019, with earlier application permitted.
(2) Effective for annual periods on or after 1 January 2021, with earlier application permitted.
IFRS 16 Leases
IFRS 16 is effective for annual periods beginning on or after 1 January 2019, with earlier application permitted.
IFRS 16 will result in almost all leases being recognised on the balance sheet, as the distinction between operating and finance leases is removed. Under the new standard, an asset (the right to use the leased item) and a financial liability (to pay rentals) are recognised. The standard will affect primarily the accounting for the group's operating leases. As at 31 December, the group has non-cancellable operating lease commitments of EUR11,787,000, see note 11 of the 2017 Annual Report. The Directors are currently assessing the impact of the adoption of the standard.
At this stage, the Directors do not intend to adopt the standard before its effective date. The Directors intend to apply the simplified transition approach and will not restate comparative amounts for the year prior to first adoption.
IFRS 9 Financial Instruments and IFRS 17 Insurance Contracts
IFRS 9 Financial Instruments is effective from 1 January 2018. The standard sets out the requirements for classification and measurement, impairment and general hedge accounting.
The IASB published IFRS 17 Insurance Contracts on 18 May 2017 which supersedes IFRS 4 Insurance Contracts. This standard is effective from 1 January 2021. The Directors are currently assessing the implications of the adoption of IFRS 17 Insurance Contracts. The standard is expected to have a considerable impact on the Financial Statements of the Group.
The IASB amended IFRS 4 Insurance Contracts in September 2016 by issuing "Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts (Amendments to IFRS 4)" which provides the option to apply a temporary exemption from the adoption of IFRS 9 Financial Instruments for periods beginning before 1 January 2021 should the insurer meet defined eligibility criteria. The Group is eligible and has applied the temporary exemption from 1 January 2018 per the amended IFRS 4 Insurance Contracts standard. Reassessment of qualification for the application of the temporary exemption will be carried out on an annual basis during the temporary exemption period.
In line with amended IFRS 4 Insurance Contracts, additional disclosures will be included in the Financial Statements of the Group during the temporary exemption period. These disclosures include:
(a) How the Group qualifies for the temporary exemption;
(b) The fair value of financial assets at the end of the reporting period and the amount of change in the fair value of financial assets during that period; and
(c) Information about the credit risk exposure of financial assets.
The adoption of IFRS 9 Financial Instruments is not expected to have a material impact on the Financial Statements of the Group.
FBD HOLDINGS PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the half year ended 30 June 2018
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 2017. 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 15-18 of the Group's Annual Financial Statements for the year ended 31 December 2017 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 2017 Annual Report.
FBD HOLDINGS PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the half year ended 30 June 2018
The following is an analysis of the Group's revenue and results from continuing operations by reportable segments:
Half year ended 30/06/2018 Financial
Underwriting Services Total
EUR000s EUR000s EUR000s
Revenue 199,713 4,548 204,261
--------------- ---------- --------
Result before taxation 17,037 1,386 18,423
Income taxation charge (2,130) (178) (2,308)
--------------- ---------- --------
Result after taxation 14,907 1,208 16,115
--------------- ---------- --------
Half year ended 30/06/2017 Financial
Underwriting Services Total
EUR000s EUR000s EUR000s
Revenue 198,133 4,391 202,524
--------------- ------------ --------
Profit before taxation 10,154 1,765 11,919
Income taxation charge (1,269) (339) (1,608)
--------------- ------------ --------
Result after taxation 8,885 1,426 10,311
--------------- ------------ --------
Year ended 31/12/2017 Financial
Underwriting Services Total
EUR000s EUR000s EUR000s
Revenue 389,008 8,733 397,741
--------------- ------------ --------
Profit before taxation 45,206 4,530 49,736
Income taxation charge (6,379) (661) (7,040)
--------------- ------------ --------
Result after taxation 38,827 3,869 42,696
--------------- ------------ --------
(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 2018
Note 4 - Underwriting result
Half year Half year Year
ended 30/06/18
(unaudited)
ended ended 31/12/17
30/06/17
(unaudited) (audited)
EUR000s EUR000s EUR000s
Gross premium written 191,985 189,650 372,459
----------------- -------------- -----------------
Net premium earned 165,510 158,931 325,932
Net claims incurred (102,596) (111,971) (203,144)
Motor Insurers Bureau of Ireland Levy (2,107) (26) (1,945)
----------------- -------------- -----------------
60,807 46,934 120,843
----------------- -------------- -----------------
Gross management expenses (41,867) (40,969) (81,751)
Deferred acquisition costs 254 5,352 6,363
Reinsurers' share of expenses 1,492 1,491 2,528
Broker commissions payable (1,752) (1,736) (3,048)
----------------- -------------- -----------------
Other Underwriting expenses (41,873) (35,862) (75,908)
----------------- -------------- -----------------
Underwriting result 18,934 11,072 44,935
----------------- -------------- -----------------
The Group's half yearly results are not subject to any significant impact arising from the seasonality of operations.
Note 5 - Dividends
Half Year Half Year Year
ended 30/06/18 ended 30/06/17
ended
31/12/17
(audited)
Paid: EUR000s EUR000s EUR000s
Dividend of 8.4 cent (2016: nil cent)
per share on 14% non-cumulative preference 113 - -
shares of EUR0.60 each
Dividend of 4.8 cent (2016: nil cent)
per share on 8% non-cumulative preference 169 - -
shares of EUR0.60 each
Final dividend of 24.0 cent (2016: nil
cent) per share on ordinary shares of 8,320 - -
EUR0.60 each
---------------- --- ---------------- --- -----------
Total dividends paid 8,602 - -
---------------- --- ---------------- --- -----------
Dividend payments were approved by the shareholders at the Annual General Meeting on 4 May 2018 and paid on 11 May 2018.
FBD HOLDINGS PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the half year ended 30 June 2018
Note 6 - Ordinary share capital
Half year Half year Year
ended 30/06/18
(unaudited)
ended 30/06/17 ended
(unaudited) 31/12/17
(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 2018 was 795,005. At 31 December 2017 the number held was 795,005.
FBD HOLDINGS PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the half year ended 30 June 2018
Note 7 - 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:
Half year Half year Year
ended ended ended 31/12/17
30/06/17 (audited)
30/06/18 (unaudited)
(unaudited)
EUR000s EUR000s EUR000s
Earnings
Profit for the period for the purpose
of basic earnings
per share 16,115 10,311 42,696
-------------- ------------- ----------------
Profit for the period for the purpose
of diluted earnings
per share 18,909 13,017 48,207
-------------- ------------- ----------------
Number of shares
Weighted average number of ordinary
shares for
the purpose of basic earnings per
share 34,666,201 34,666,201 34,666,201
Weighted average number of ordinary
shares for
the purpose of diluted earnings
per share 43,329,630 43,029,131 43,329,630
-------------- ------------- ----------------
From continuing operations Cent Cent Cent
Basic earnings per share 46 30 123
-------------- ------------- ----------------
Diluted earnings per share 44(1) 30(1) 111(1)
-------------- ------------- ----------------
(1) Diluted earnings per share reflects the potential conversion of the convertible debt and share based payments. An adjustment has been made to diluted earnings at 30 June 2017 and 31 December 2017 to take account of the impact of the convertible debt. conversion.
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 2018
Note 8 - Retirement Benefit Plan Asset
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:
30/06/18 30/06/17 31/12/17
(unaudited) (unaudited) (audited)
EUR000s EUR000s EUR000s
Fair value of plan assets 97,900 98,200 97,877
Present value of defined benefit
obligation (87,000) (85,700) (88,103)
------------ ------------ ----------
Net retirement plan asset 10,900 12,500 9,774
------------ ------------ ----------
Note 9 - Financial Instruments and Fair Value Measurement
(a) Financial Instruments
30/06/18 30/06/17 31/12/17
(unaudited) (unaudited) (audited)
EUR000s EUR000s EUR000s
Financial Assets
At amortised cost:
Deposits with banks 178,286 185,781 195,985
At fair value:
Investments held for trading 81,228 46,159 45,347
Available for sale investments 744,224 736,483 758,687
At cost:
Loans 574 705 681
Other receivables 68,518 71,161 64,020
Cash and cash equivalents 35,572 31,516 27,176
Financial Liabilities
At amortised cost:
Convertible debt 53,268 51,807 52,525
At cost:
Payables 33,593 30,402 30,667
FBD HOLDINGS PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the half year ended 30 June 2018
Note 9 - Financial Instruments and Fair Value Measurement (continued)
(b) Fair value measurement
The following table compares the fair value of financial assets and liabilities with their carrying values:
30/06/18 30/06/18 30/06/17 30/06/17 31/12/17 31/12/17
(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 689 574 846 705 817 681
Financial investments 1,003,738 1,003,738 968,423 968,423 1,000,019 1,000,019
Financial liabilities
Convertible Debt 66,406 53,268 54,880 51,807 66,406 52,525
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
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 operating projections.
FBD HOLDINGS PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the half year ended 30 June 2018
Note 9 - Financial Instruments and Fair Value Measurement (continued)
30 June 2018 (unaudited) Level Level Level 3 Total
1 2
EUR000s EUR000s EUR000s EUR000s
Assets
Loans - 689 - 689
Investment property - 18,000 - 18,000
Property held for own use - 14,754 - 14,754
Financial assets
Investments held for trading
- quoted shares 292 - - 292
Investments held for trading
- UCIT Funds 80,936 - - 80,936
AFS(1) investments - quoted debt
securities 743,380 - - 743,380
AFS(1) investments - unquoted
investments - - 844 844
Deposits with banks 178,286 - - 178,286
Cash and cash equivalents 35,572 - - 35,572
---------- -------- -------- ----------
Total assets 1,038,466 33,443 844 1,072,753
---------- -------- -------- ----------
Liabilities
Convertible debt - 66,406 - 66,406
---------- -------- -------- ----------
Total liabilities - 66,406 - 66,406
---------- -------- -------- ----------
(1) Available for sale
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
Property held for own use - 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 2018
Note 9 - Financial Instruments and Fair Value Measurement (continued)
31 December 2017 (audited) Level 1 Level Level 3 Total
2
EUR000s EUR000s EUR000s EUR000s
Assets
Loans - 817 - 817
Investment property - 18,000 - 18,000
Property held for own use - 14,754 - 14,754
Financial assets
Investments held for trading
- quoted shares 20,935 - - 20,935
Investments held for trading
- UCITs 24,412 - - 24,412
AFS(1) investments - quoted debt
securities 757,843 - - 757,843
AFS(1) investments - unquoted
investments - - 844 844
Deposits with banks 195,985 - - 195,985
Cash and cash equivalents 27,176 - - 27,176
---------- -------- -------- ----------
Total assets 1,026,351 33,571 844 1,060,766
---------- -------- -------- ----------
Liabilities
Convertible debt - 66,406 - 66,406
---------- -------- -------- ----------
Total liabilities - 66,406 - 66,406
---------- -------- -------- ----------
(1) Available for sale
FBD HOLDINGS PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the half year ended 30 June 2018
A reconciliation of Level 3 fair value measurement of financial assets is shown in the table below
30/06/18 30/06/17 31/12/17
(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 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 2018 is EUR844,000 (30 June 2017: EUR844,000; 31 December 2017: EUR844,000).
Note 10 - 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 2017 Annual Report. An analysis of share-based payments to key management personnel is also included in Note 40 of the 2017 Annual Report.
Note 11 - Contingent liabilities and contingent assets
There were no contingent liabilities or contingent assets at 30 June 2018, 30 June 2017 or 31 December 2017.
Note 12 - Information
This half yearly report and the Annual Report for the year ended 31 December 2017 are available on the Company's website at www.fbdgroup.com.
Note 13 - Approval of Half Yearly Report
The half yearly report was approved by the Board of Directors of FBD Holdings plc on 31 July 2018.
FBD HOLDINGS PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the half year ended 30 June 2018
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
31 July 2018
APPIX
ALTERNATIVE PERFORMANCE MEASURES (APM's)
The Group uses the following alternative performance measures: Loss ratio, expense ratio, combined operating ratio, annualised investment return, net asset value per share, return on equity and gross written premium.
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. Return on equity (ROE) is also a widely used profitability ratio that measures an entity's ability to generate profits from its shareholder investments. Gross written premium refers to the revenue of an insurance company and is widely used across the general insurance industry.
The calculation of the APM's is based on the following data:
Half year Half year Year
ended ended 30/06/17 ended 31/12/17
30/06/18 (unaudited) (audited)
(unaudited)
EUR000s EUR000s EUR000s
Loss ratio
Net claims and benefits 102,596 111,971 203,144
Movement in other provisions 2,107 26 1,945
-------------- ----------------
Total claims incurred 104,703 111,997 205,089
Net premium earned 165,510 158,931 325,932
-------------- ---------------- ----------------
Loss ratio (Total claims incurred/Net
premium earned) 63.3% 70.5% 62.9%
--------------
Expense ratio
Other underwriting expenses 41,873 35,862 75,908
Net premium earned 165,510 158,931 325,932
-------------- ---------------- ----------------
Expense ratio (Underwriting expenses/Net
premium earned) 25.3% 22.6% 23.3%
-------------- ---------------- ----------------
Combined operating ratio % % %
Loss ratio 63.3% 70.5% 62.9%
Expense ratio 25.3% 22.6% 23.3%
-------------- ---------------- ----------------
Combined operating ratio (Loss
ratio + Expense ratio) 88.6% 93.1% 86.2%
-------------- ---------------- ----------------
Annualised investment return EUR000s EUR000s EUR000s
Investment return recognised
in consolidated income statement 1,297 3,898 9,361
Investment return recognised
in statement of comprehensive
income (3,474) (423) 2,807
-------------- ---------------- ----------------
Total investment return (2,177) 3,475 12,168
Average investment assets 1,063,672 1,033,507 1,027,637
Investment return (Total investment
return/Average investment assets) (0.4%)(1) 0.7%(1) 1.2%
-------------- ---------------- ----------------
(1) Annualised
Half year Half year Year
ended ended 30/06/17 ended 31/12/17
30/06/18 (unaudited) (audited)
(unaudited)
Net asset value per share (NAV
per share) EUR000s EUR000s EUR000s
Shareholders' funds - equity
interests 277,475 238,530 271,626
-------------- ---------------- ----------------
Number of shares
Weighted average number of ordinary
shares 34,666,201 34,666,201 34,666,201
-------------- ---------------- ----------------
Cent Cent Cent
Net asset value per share (Shareholders
funds /Weighted average number
of ordinary shares) 800 688 784
-------------- ---------------- ----------------
Return on Equity EUR000s EUR000s EUR000s
Weighted average equity attributable
to ordinary equity holders of
the parent 274,551 232,039 248,587
Result for the period 16,115 10,311 42,696
-------------- ---------------- ----------------
Return on equity (Result for
the period/Weighted average equity
attributable to ordinary equity
holders of the parent) 12%(1) 9%(1) 17%
-------------- ---------------- ----------------
Gross premium written: The total premium on insurance underwritten
by an insurer or reinsurer
during a specified period, before deduction of reinsurance
premium.
(1) 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 2018. 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 2018; -- 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.
PricewaterhouseCoopers
Chartered Accountants
Dublin
31 July 2018
(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 news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
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