FBH.L Regulatory News (FBH)

FBD Holdings plc

Trading Update

24 October 2017

Since Storm Ophelia hit Ireland on Monday 16th October, we have been working with our customers to compensate them for the damage caused to their homes, farms and businesses. So far and as the number of claims start to level off, these have come from all over the country with the largest number to date coming from counties Cork and Tipperary.

While it is still too soon to present a final tally of both the total number and gross cost of claims from the storm, our new reinsurance programme provides good cover in extreme events and this will mitigate the net cost to FBD. Our cost of claims (net of reinsurance) will be €2.5m. However, the overall net impact to the Income Statement from this storm is expected to cost in the range of €4m-€6m after the payment of an additional reinsurance premium to reinstate our catastrophe weather limits for the balance of the year.

Fiona Muldoon, CEO of FBD said: "Despite the impact of Storm Ophelia and other recent weather related claims, we continue to see a steady improvement in our financial performance from both better risk selection and improved price adequacy. Absent further severe weather in 2017, we are now on course to deliver our targeted "low double digit return on equity" earlier than previously indicated. If the remainder of 2017 is reasonably benign in weather terms, we believe this return is achievable in this financial year."  

ENDS

About FBD Holdings plc

The FBD Group was established in the 1960s and is one of Ireland's largest property and casualty insurers looking after the insurance needs of farmers, private individuals and business owners.

Forward Looking Statements

Some statements in this announcement are forward-looking. They represent expectations for the Group's business, and involve risks and uncertainties. These forward-looking statements are based on current expectations and projections about future events. The Group believes that current expectations and assumptions with respect to these forward-looking statements are reasonable. However, because they involve known and unknown risks, uncertainties and other factors, which are in some cases beyond the Group's control, actual results or performance may differ materially from those expressed or implied by such forward-looking statements.

The following details relate to FBD's ordinary shares of €0.60 each which are publicly traded:

FBD Holdings plc, FBD House, Bluebell, Dublin 12Registered in Dublin, Ireland Registered Number 135882