FBD (EG7) H1 2024 earnings summary

Executive summary

• Profit before tax was €32.3m for H1 2024, down from €39.5m in H1 2023, supported by premium growth, underwriting discipline, and higher investment returns, but impacted by higher claims and weather events.

• Gross Written Premium (GWP) increased by 10% year-over-year to €226m, with policy count growth across Farmer, Business, and Retail sectors.

• Special dividend of 100c per share approved, reflecting strong capital position and excess capital.

• ESG initiatives advanced, including a €1.5m pledge to UCD Agricultural Science Centre/Lyons Farm and Gold Accreditation for Investors in Diversity.

• Combined Operating Ratio (COR) of 87.7% (2023: 81.1%) reflects increased claims and expense ratios.

Financial highlights

• Underwriting result was €26m, down from €37m in H1 2023, with insurance service result at €47.9m (2023: €65.4m) due to higher weather and motor damage claims.

• Investment income rose to €15m from €8m in H1 2023, mainly driven by equities and higher bond yields.

• Insurance revenue increased to €213m from €195m year-over-year.

• Net Asset Value per share was 1,293c after dividend payments, down from 1,330c at year-end 2023.

• Return on Equity (ROE) annualized at 12%, down from 15% in H1 2023.

Outlook and guidance

• Focus remains on sustainable annual dividends, maintaining a strong capital position, and measured profitable growth through value, growth, and innovation, with digital and ESG integration.

• Business growth and capital distributions expected to continue, supported by robust solvency and policy growth.

• Inflationary pressures on claims, especially for motor and property, expected to persist; bond portfolio income projected to rise.

• Continued focus on ESG initiatives and digital transformation to support long-term sustainability.

• Cautiously optimistic economic outlook for 2024, with modest growth expected in Ireland and globally.