FBD (EG7) H2 2023 earnings summary

Executive summary

• FY 2023 profit before tax was €81.4m, with reported COR of 80.9% and GWP of €414m, up 8.1% YoY.

• ROE reached 15% for a third consecutive year of double-digit returns; proposed ordinary dividend was 100c per share.

• Growth reflected higher policy counts and average premiums across Farmer, Business and Retail; 2024 COR in the low 90s was described as achievable.

Financial highlights

• Insurance revenue was €401.0m versus €379.7m restated in 2022; profit before tax was €81.4m versus €65.8m.

• Underwriting result was €76m versus €90m; total investment return was €19.1m versus a loss of €10.8m.

• EPS was 194c versus 161c; NAV was 1,330c versus 1,276c; GWP rose 8.1% to €414m.

• Reported COR was 80.9% versus 76.4%; undiscounted COR was 83.3% versus 79.1%.

Outlook and guidance

• Low-90s COR was considered achievable for 2024.

• Capital management remains focused on sustainable annual dividends while maintaining robust capital; intent is to move SCR closer to the 150%–170% risk-appetite range.

• Expected reductions in government bonds excluding short-term holdings align with strategic asset allocation; risk assets are increasing but remain underweight to allocation targets.