FBD (EG7) H2 2021 earnings summary

Executive summary

• FY21 profit before tax €110.4m vs €4.8m in 2020, supported by underwriting profitability, favorable claims experience and investment income.

• Reported COR was 71.5%; current-year COR excluding BI-related costs was 86.6%, while reduced BI uncertainty followed a court judgment and reinsurance agreement.

• Proposed dividend of 100c per share, with an unaudited solvency capital ratio of 214% after the dividend.

Financial highlights

• GWP €366.3m vs €358.2m; excluding Covid-19 rebates, 2021 GWP was €370m; rebates were €3.3m vs €11.8m in 2020.

• Net earned premium €334.2m vs €315.2m; net claims incurred €145.7m vs €231.1m.

• Underwriting result €95.2m vs a €4.4m loss; investment income €15.7m vs €10.4m.

• EPS 274c vs 13c; NAV 1,338c vs 1,095c per share.

• €13.2m provision for consequential payments following FSPO decisions; €15.7m investment return through the income statement, partly offset by €12.2m through OCI from bond mark-to-market movements.

Outlook and guidance

• 2022 current-year COR guidance of circa 90%, absent exceptional weather.

• Strategic focus on predictable returns, sustainable annual dividends and measured profitable customer growth supported by retention.

• Commercial products, including a broker offering, planned to launch in 2022; Bank of Ireland partnership extension progressing, with new business expected in 2022.