FBD (EG7) H2 2024 earnings summary

Executive summary

• Profit before tax reached €77.1m, with a Combined Operating Ratio (COR) of 84.9% and strong post-weather capital position maintained.

• Gross Written Premium (GWP) grew by 13% to €460.2m, with policy count up 6.3% (33,000 new policies), driven by growth across all sectors.

• Ordinary dividend of 100c per share proposed, with a special dividend of 100c per share paid, reflecting robust capital management and a 16% yield.

• Solvency Capital Ratio (SCR) stands at 197% after proposed dividend and January 2025 weather events, above the risk appetite range.

• Net asset value per share increased to 1,346c (2023: 1,330c).

Financial highlights

• Underwriting result was €67m (2023: €76m); investment return increased to €26m (2023: €19m).

• Basic earnings per share: 186c (2023: 194c); return on equity: 14% (2023: 15%).

• Loss ratio increased to 57.1% (2023: 53.5%), expense ratio at 27.8% (2023: 27.4%).

• Insurance revenue: €441.0m (+10% year-over-year).

• Solvency Capital Ratio at 197% after proposed dividend and January 2025 weather events.

Outlook and guidance

• Guidance for 2025: Combined Operating Ratio in the mid-90s, including the impact of January 2025 weather events.

• Focus remains on annual dividend sustainability and maintaining a strong capital position.

• Irish economy expected to operate near full capacity in 2025, with risks of overheating and inflation.

• Income projections for bond portfolio have improved due to higher reinvestment rates; ECB expected to cut rates in 2025.

• Judicial Council's recommended 16.7% increase in personal injury damages has been allowed for in reserves.