FBH.L Regulatory News (FBH)

17 Dec 2007 08:00

FBD Holdings PLC17 December 2007 FBD HOLDINGS PLC ("FBD" or "the Group") Pre-Close Trading Statement For the year ending 31 December 2007 FBD Holdings plc has maintained its strong trading performance in the secondhalf of 2007. Operating Profit In our underwriting business, policy growth has continued at anticipated levels, building on the considerable progress made in previous years. Premium written is in line with 2006, notwithstanding price reductions that occurred during the period. Claims experience in the second half to date has improved somewhat on the first half year, due in part to a lower incidence of weather related claims. Other costs are running at levels similar to the first half. We expect the underwriting result to be on budget. In our non-underwriting activities, income is lower than originally budgeted.This is due entirely to the impact of the weakness in financial markets on thereduced Capital Fund. The reduction in the Fund arose in connection with the€177m distribution to shareholders in June 2007. Property, leisure and financial services have performed substantially ahead of 2006 and income from these activities is as expected. As regards full year operating earnings, barring any significant end-of-yearclaims events, we are comfortable with the markets' expectation.* Profit Before Taxation The weakness in financial markets referred to above has had an impact on theshort term fluctuation in investment returns. 2008 Outlook The Group is positioned to maintain growth momentum in its businesses. In relation to 2008 operating earnings in our underwriting business, key itemsof influence will be the price reductions which have been implemented during2007 and developments at industry level in both insurance pricing and insuranceclaim costs. As regards pricing, there is evidence that the decline in premiumrates has abated. We expect to have greater visibility on the pricingenvironment when our 2007 preliminary results are announced. The Group willcontinue to execute our development plans to achieve our objective ofsustainable profitable growth. La Cala Land Sale AgreementIn relation to the Tranche II land sale, delays arising from issues notassociated with La Cala continue to hinder and slow the regional planningapproval process. In the light of the extending timelines, our advisors areundertaking an additional, parallel approach, at municipal level, to finaliseplanning permission on the land. Whilst delivery ultimately remains outside ofour control, our advisors estimate that this will take until 2009, within theagreement deadline of June 2009. Preliminary Results The Group's preliminary results are scheduled to be announced on Wednesday 5March 2008. * An FBD survey of the forecasts of the analysts who cover the Group indicates a mean market expectation for 2007 operating earnings per share to be 311 cents per share. ENDS For Reference: Telephone No: FBDPhilip Fitzsimons, Chief Executive +353 1 409 3208Andrew Langford, Finance Director Murray ConsultantsJoe Murray +353 1 498 0315 FBD Holdings plc FBD House Bluebell Dublin 12 Ireland Registered in Dublin, Ireland Registered Number 135882 This information is provided by RNS The company news service from the London Stock Exchange