FBD (EG7) H2 2022 earnings summary

Executive summary

• 2022 profit before tax €73.7m, supported by €85.7m underwriting profit; reported COR 74.5% and underlying COR 91.9%.

• GWP rose 3.4% to €382.9m, with written policies up 2.8%; proposed ordinary dividend of 100c per share.

Financial highlights

• PBT €73.7m vs €110.4m in 2021; underwriting result €85.7m vs €95.2m, while investment return shifted to a €10.4m loss from €15.7m income.

• Net earned premium €335.9m vs €334.2m; net claims incurred €154.2m vs €145.7m, and other underwriting expenses €96.0m vs €93.4m.

• GWP €382.9m vs €366.3m; EPS 181c vs 274c, NAV 1,188c vs 1,338c, and ROE 14% vs 23%.

Outlook and guidance

• 2023 IFRS 17 COR in the low 90s is considered achievable, with a similar level on the current accounting basis.

• Higher future bond reinvestment yields are expected to improve investment income as existing bonds mature; €834m bond assets had a 3.2-year duration.

• Settlement of valid Covid-19 business interruption claims was anticipated during 2023; the net-of-reinsurance best estimate fell to €42m from €43m at H1.