TIDMFBH
RNS Number : 0923N
FBD Holdings PLC
04 August 2017
FBD HOLDINGS PLC
4(th) August 2017
FBD HOLDINGS PLC
Half Yearly Report
For the Six Months Ended 30 June 2017
KEY HIGHLIGHTS
-- Profit before tax of EUR11.9m
-- Gross Written Premium up 4.9% to EUR189.7m (2016: EUR180.8m)
-- Combined Operating Ratio ("COR") of 93.1% including a
one-time EUR5.6m MIBI provision release following the Setanta
Supreme Court judgement ("the MIBI levy release")
-- Underlying improvement in loss ratios from better risk
selection and improved price adequacy
-- Further strong progress on our strategic objectives. FBD is
on track to deliver targeted returns on capital following:
o Successful new brand launch with positive impact on customer
retention and new business
o Strengthening Solvency II capital ratio
o New reinsurance programme in place expected to provide greater
protection at lower cost
o Return to profitability of Financial Solutions business
following significant restructuring
o Successful implementation of new IT policy administration
system
FINANCIAL SUMMARY
2017 2016
EUR'000s EUR'000s
Gross written premium 189,650 180,845
Underwriting profit/(loss) 11,072 (1,595)
Profit/(loss) before taxation 11,919 (3,652)
Loss ratio 70.5% 78.9%
Expense ratio 22.6% 22.1%
Combined operating ratio 93.1% 101.0%
Cent Cent
Basic earnings/loss per share 30 (9)
Net asset value per share 688 607
-- Gross written premium increased EUR8.9m to EUR189.7m with
both strong retention and new business performance in our Farm,
Small Business and Consumer lines
-- Average premium rate increases of 5%
-- Profit before tax of EUR11.9m compared to a loss of EUR3.7m in 2016
-- COR of 93.1% compared to 101% in the same period last year
-- Annualised total investment return of 0.7%, reflecting
on-going low-return environment with increases in core bond yields
driving modest unrealised mark to market losses of 0.3%
Fiona Muldoon, Group Chief Executive, said:
"This is a good set of results and reflects the strong actions
taken in the last few years. Our focus on delivery for our farm,
small business and consumer customers has returned our business to
profit. Our nationwide network of offices and our midlands-based
service centre delivers real value and service to our customers and
is why they choose to give us their business in a difficult pricing
environment.
While we welcome the Government report on reducing the cost of
claims for all insurance users, we believe we need urgent reforms
to tackle injury claims payouts and to address the impact claims
costs are having on the affordability of insurance for farmers,
small businesses and consumers up and down the country. In the
absence of reform all insurance customers will continue to pay the
too-high cost of these awards through higher insurance
premiums."
A presentation will be made to analysts at 9am today, a copy of
which will be available on our Group website www.fbdgroup.com.
Enquiries Telephone
FBD
Fiona Muldoon, Group Chief Executive +353 1 409 3208
John O'Grady, Group Chief Financial Officer
Peter Jackson, Head of Investor Relations
Powerscourt
Rory Godson/Jack Hickey +353 83 448 8339
About FBD Holdings plc ("FBD")
FBD is one of Ireland's largest property and casualty insurers,
looking after the insurance needs of farmers, consumers and
business owners. Established in the 1960s by farmers for farmers,
FBD has built on those roots in agriculture to become a leading
general insurer serving the needs of its direct agricultural, small
business and consumer customers throughout Ireland. It has a
network of 33 branches nationwide.
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 EUR0.60
each which are publicly traded:
Listing Irish Stock Exchange UK Listing Authority
Listing Category Premium Premium (Equity)
Trading Venue Irish Stock Exchange London Stock Exchange
Market Main Securities Market Main Market
ISIN IE0003290289 IE0003290289
Ticker FBD.I or EG7.IR FBH.L
OVERVIEW
The results for the first half of 2017 are strong and represent
a solid start to the year, providing further evidence that FBD is
on a clear path to the achievement of our targeted returns on
equity. The Group recorded an increase in gross written premiums
during the period of EUR8.9m or 4.9% to EUR189.7m (2016:
EUR180.8m), a profit before tax of EUR11.9m (2016: EUR3.7m loss)
and an underwriting profit of EUR11.1m (2016: EUR1.6m loss).
UNDERWRITING
Premium Income
The Group continues to focus on its core farm, small business
and consumer customers. Gross written premium for the first six
months of 2017 increased by EUR8.9m or 4.9% to EUR189.7m, compared
to EUR180.8m for the same period last year. Gross written premium
in our direct operations increased by EUR9.3m or 5.5%, while gross
written premium written through brokers decreased by EUR0.5m or
4.0%.
New business volumes have increased by 15% compared to the
second half of 2016 and 12% on the same period last year. Overall
policy volumes have now stabilised, with a 0.3% decline in policies
written compared to the first half of 2016. Average premium rates
increased by 2% in the period and 5% since the first half of 2016.
The Group is now targeting modest growth in our core areas while
continuing to apply underwriting discipline.
Reinsurance
The Group amended its reinsurance arrangements at the outset of
2017 to what it believes is a more effective programme providing
better cover in extreme events, while accepting more attritional
property risk. The impact of this has been an increase in net
earned premium, partially offset by a reduction in reinsurance
commission received.
Claims
Net claims incurred, including claims handling expenses and
movement in MIBI provisions, amounted to EUR112.0m for the period
(2016: EUR120.0m).
Claims reserves overall are continuing to develop in line with
expectations. There was modest positive prior year development
experienced in the period which arose mainly in motor injury.
The Group incurred EUR0.1m (2016: EUR5.0m) relating to its MIBI
levy obligation for the first six months of 2017. The MIBI levy is
calculated based on the Group's expected share of the motor market
for 2017 and the estimated levy call which will be made by the
MIBI. The charge includes the MIBI levy release of EUR5.6m
following the recent Supreme Court ruling on the "Setanta" case
which found that the MIBI was not liable for third party claims
from motor insurer insolvencies.
The Group has reclassified claims handling expenses from other
underwriting expenses to net claims incurred in the current period.
Claims handling expenses for the first six months of 2017 amounted
to EUR4.8m (2016: EUR5.1m). Prior year numbers have been similarly
reclassified. This treatment brings the Group in line with normal
industry practice.
Claims Environment
The claims environment has stabilised somewhat during 2017 with
claims inflation continuing to moderate from the very high levels
seen in 2014 and 2015. While it is difficult yet to assess the
impact of the introduction last year of the new Book of Quantum,
average Injury Board awards for FBD have increased by approximately
10% since early 2016. A wide variation in court awards for similar
injury types is also evident as well as the early involvement of
solicitors in all claims including those seen by the Injuries
Board.
The Group welcomes the progress being made by the Cost of
Insurance Working Group, in particular the establishment of the
Personal Injuries Commission, the commencement of work on assessing
the impact of changes in court jurisdictional limits on claim
costs, and the beginning of work to establish a framework to
provide reliable data for assessing the impact of legal and other
fees on personal injury awards. The Group also notes the
publication of the general scheme of the Personal Injuries
Assessment Board (Amendment) Bill.
The Group welcomes the proposed strengthening of the powers of
the Personal Injuries Assessment Board to enable claims settlement
in a more efficient and expedient manner for all parties. Serious
reform is required to tackle the cost of claims and enable
reductions in premiums for insurance customers.
Other uncertainties in the claims environment include the
challenge by the Department of Social Protection to the operation
of the Recovery Benefit Assistance scheme and the impact of
measures taken to reduce delays with finalisation of legal costs.
Both areas have the potential to adversely impact costs for
insurers.
Weather, Claims Frequency and Large Claims
Weather in the first half of 2017 was relatively benign and
there were no events of note.
Motor injury frequency continued to decline as the underwriting
and risk selection actions taken by the Group yield results.
The gross cost of large claims (greater than EUR500k) of EUR19m
is largely in line with the average of the past five years. On a
net of reinsurance basis, our large claims cost is EUR4m lower than
the five year average as a result of the lower retentions in our
reinsurance programme.
Other Underwriting Expenses
The Group's expense ratio was 22.6% for the period (2016:
22.1%). Other underwriting expenses were EUR35.9m an increase of
EUR2.2m. This was largely due to an increase in the depreciation
charge from the Group's new policy administration system.
The reclassification of claims handling expenses has reduced the
reported expense ratio by 3.0 percentage points (2016: 3.4
percentage points) and increased the loss ratio by the same
amount.
The new reinsurance programme in place for 2017 resulted in
lower reinsurance commissions of EUR4.1m in the period. This had an
adverse impact on the expense ratio of approximately 2.6 percentage
points. This impact has been offset in the first half of 2017 by
the one-time release of previously deferred commissions receivable
related to the commutation of the property reinsurance surplus
treaty.
General
FBD's combined operating ratio was 93.1% for the period,
generating an underwriting profit of EUR11.1m (2016: EUR1.6m
loss).
Investment Return
The Group's total investment return for the first six months of
2017 was an annualised 0.68% (2016: 1.92%), with 0.77% (2016:
0.06%) recognised in the income statement and -0.09% (2016: 1.86%)
recognised in the statement of other comprehensive income. The
investment return reflects the continuing low interest rate
environment and the Groups low risk investment allocation, with
increases in core bond yields in late June driving modest
unrealised mark to market losses which impacted the annualised
return by approximately 0.3%.
Financial Services
The Group's financial services business delivered a profit of
EUR1.8m for the period (2016: EUR0.5m before restructuring
charges), a solid performance in a difficult environment. The
Group's financial services operations include premium instalment
services and life, pension and investment broking (FBD Financial
Solutions), less holding company costs. The Financial Solutions
business generated a profit in this half year following our 2016
restructuring.
Profit per share
The Group recorded a diluted profit per share of 30 cent per
ordinary share in the first half of 2017, compared to a loss of 9
cent per ordinary share in the same period in 2016.
STATEMENT OF FINANCIAL POSITION
Capital position
Ordinary shareholders' funds at 30 June 2017 amounted to
EUR238.5m (December 2016: EUR225.5m). The increase in shareholders'
funds is mainly attributable to the following:
-- profit after taxation for the period of EUR10.3m
-- the movement in the defined benefit pension scheme obligation
of EUR2.5m, net of tax, following a 30bps increase in the discount
rate to 2.0%
-- offset by mark to market losses on the Group's Available for
Sale investments of EUR0.4m after tax recognised in the statement
of other comprehensive income
-- share based payments of EUR0.6m.
Net assets per ordinary share are 688 cent, compared to 651 cent
per share at 31 December 2016.
Solvency
As disclosed in the 31(st) December 2016 Solvency &
Financial Condition Report issued in May, the solvency position of
the Group was 126% of the required amount. The Group is committed
to maintaining a strong solvency position.
Investment Allocation
The Group has continued a policy of low risk investment
allocation during the period, increasing the allocation of funds to
Government bonds and reducing exposure to term deposits.
Details of the allocation of the Groups underwriting investment
assets is as follows:
30 June 2017 31 December 2016
Underwriting Investment Assets EUR'm % EUR'm %
Deposits & cash 220 22% 270 27%
Corporate bonds 494 48% 493 49%
Government bonds 242 24% 177 18%
Equities 22 2% 24 2%
Unit trusts 24 2% 24 2%
Investment Property 16 2% 16 2%
Underwriting investment assets 1,018 100% 1,004 100%
We are continuing to increase our exposure to Government bonds
up to our Strategic Asset Allocation target of 30% of the
portfolio.
OUTLOOK
The results of the first half of 2017 are good and it is now
evident that FBD has stabilised. The Group looks forward to
developing on this success, targeting modest profitable growth and
continued stabilisation in policy volumes in the second half of
2017.
Our combined operating ratio was driven mainly by good current
year accident frequency and the MIBI levy release. We believe our
amended reinsurance programme has resulted in a more efficient
programme, providing better cover in extreme events and higher
retained premiums. Strong progress continues to be made on all
strategic objectives.
There is still uncertainty evident in the claims environment
which in the absence of meaningful reform means the Group does not
see any downward momentum in underlying claims costs.
The Group's ambition is to deliver sustainable shareholder value
with continuing progression towards a return on equity ("ROE") in
the low teens, delivered through careful growth in its farm, small
business and consumer operations, within risk appetite and in line
with Irish economic growth generally. While the Irish economy
continues to grow, Brexit remains a substantial risk with business
and trading uncertainty prevalent for all Irish indigenous
businesses such as ours and our customers'.
The Group will continue to focus on its farm, small business and
consumer customers, concentrating on those markets where it has
developed a significant competitive advantage, with superior
customer service through our nationwide local branch network and
midlands-based service centre. On-going investment in enhancing our
digital capabilities to reflect changing buying patterns, together
with improvements in pricing sophistication and risk selection will
be key priorities in the immediate future.
FBD HOLDINGS PLC
Condensed Consolidated Income Statement
For the half year ended 30 June 2017
Adjusted(1) Adjusted(1)
Half year Half year Year ended 31/12/16 (audited)
ended ended
Notes 30/06/17 30/06/16
(unaudited) (unaudited)
EUR000s EUR000s EUR000s
Revenue 3 202,524 198,179 397,003
-------------- ------------- -------------------------------
Income
Gross premium written 189,650 180,845 361,799
Reinsurance premiums (7,446) (25,415) (50,086)
-------------- ------------- -------------------------------
Net premium written 182,204 155,430 311,713
Change in provision for unearned
premiums (23,273) (3,410) (3,487)
-------------- ------------- -------------------------------
Net premium earned 158,931 152,020 308,226
Net investment return 3,898 271 8,338
Financial services income 4,391 3,888 8,542
-------------- ------------- -------------------------------
Total income 167,220 156,179 325,106
Expenses
Net claims and benefits(1) (111,971) (114,955) (227,853)
Other underwriting expenses(1) 4 (35,862) (33,662) (69,406)
Movement in MIBI Levy (26) (4,998) (7,747)
Financial services expenses (2,633) (3,348) (6,592)
Restructuring and other costs (1,717) (1,266) (2,794)
Finance costs (3,092) (3,255) (6,156)
Revaluation of property, plant and
equipment - - (330)
Pension curtailment - - 7,214
Result before taxation 11,919 (5,305) 11,442
Income taxation (charge)/credit (1,608) 542 (2,415)
-------------- ------------- -------------------------------
Result for the period from
continuing operations 10,311 (4,763) 9,027
Discontinued operations
Result for period from
discontinued operations including
profit/(loss) from sale - 1,653 1,653
Result for the period 10,311 (3,110) 10,680
-------------- ------------- -------------------------------
Attributable to:
Equity holders of the parent 10,311 (3,031) 10,759
Non-controlling interests - (79) (79)
10,311 (3,110) 10,680
-------------- ------------- -------------------------------
(1) Adjusted: Claims handling expenses are now reflected in Net
claims and benefits rather than Other underwriting expenses.
Adjustments have been made to comparative periods to reflect
this.
FBD HOLDINGS PLC
Condensed Consolidated Income Statement
For the half year ended 30 June 2017
Half year Half year Year ended 31/12/16 (audited)
ended ended 30/06/16
30/06/17 (unaudited)
(unaudited)
Notes
Earnings/(loss) Cent Cent Cent
per share
From continuing
operations
Basic 8 30 (14) 26
---------------- ------------------- ------------------------------
Diluted 8 30 (14) 26
---------------- ------------------- ------------------------------
From continuing and discontinued operations
Basic 8 30 (9) 31
------ ------- ------
Diluted 8 30 (9) 31
------ ------- ------
FBD HOLDINGS PLC
Condensed Consolidated Statement of Comprehensive Income
For the half year ended 30 June 2017
Half year Half year Year ended
ended 30/06/16 31/12/16
(audited)
ended 30/06/17 (unaudited)
(unaudited)
EUR000s EUR000s EUR000s
Result for the period 10,311 (3,110) 10,680
----------------- ----------------- ------------
Items that will or may be reclassified
to profit or loss in subsequent
periods:
Net (loss)/gain on available for
sale assets (423) 9,161 10,371
Taxation credit/(charge) relating
to items that will or may be reclassified
to profit or loss in subsequent
periods 53 (1,145) (1,296)
Items that will not be reclassified
to profit or loss in subsequent
periods:
Actuarial gain/(loss) on retirement
benefit obligations 2,808 (12,320) (12,233)
Taxation (charge)/credit relating
to items not to be reclassified
in subsequent periods (351) 1,540 1,529
----------------- ----------------- ------------
Other comprehensive income/(expense)
after taxation 2,087 (2,764) (1,629)
----------------- ----------------- ------------
Total comprehensive income/(expense)
for the period 12,398 (5,874) 9,051
----------------- ----------------- ------------
Attributable to:
Equity holders of the parent 12,398 (5,795) 9,130
Non-controlling interests - (79) (79)
12,398 (5,874) 9,051
----------------- ----------------- ------------
FBD HOLDINGS PLC
Condensed Consolidated Statement of Financial Position
At 30 June 2017
ASSETS 30/06/17 30/06/16 31/12/16
(unaudited) (unaudited) (audited)
Notes EUR000s EUR000s EUR000s
Property, plant and equipment 70,188 74,351 72,994
Investment property 16,400 14,550 16,400
Loans 705 752 732
Deferred taxation asset 10,485 12,938 12,234
Financial assets
Available for sale investments 736,483 548,010 629,498
Investments held for trading 46,159 88,571 90,302
Deposits with banks 185,781 305,676 236,897
------------- ------------- -----------
968,423 942,257 956,697
------------- ------------- -----------
Reinsurance assets
Provision for unearned premiums 4 14,821 13,954
Claims outstanding 70,714 62,484 69,260
------------- ------------- -----------
70,718 77,305 83,214
------------- ------------- -----------
Retirement benefit asset 12,500 - 8,715
Current taxation asset 4,103 4,557 4,162
Deferred acquisition costs 30,355 25,695 25,004
Other receivables 71,161 63,891 62,770
Cash and cash equivalents 31,516 31,606 26,561
------------- ------------- -----------
Total assets 1,286,554 1,247,902 1,269,483
------------- ------------- -----------
FBD HOLDINGS PLC
Condensed Consolidated Statement of Financial Position
(continued)
At 30 June 2017
EQUITY AND LIABILITIES 30/06/17 30/06/16 31/12/16 (audited)
(unaudited) (unaudited)
Notes EUR000s EUR000s EUR000s
Equity
Ordinary share capital 7 21,409 21,409 21,409
Capital reserves 19,625 18,964 19,041
Retained earnings 179,264 151,875 166,866
Other reserves 18,232 18,232 18,232
Shareholders' funds - ordinary equity interests 238,530 210,480 225,548
Preference share capital 2,923 2,923 2,923
------------- ------------- -------------------
Total Equity 241,453 213,403 228,471
Liabilities
Insurance contract liabilities
Provision for unearned premiums 190,020 181,483 180,692
Claims outstanding 759,233 739,033 745,490
------------- ------------- -------------------
949,253 920,516 926,182
Other provisions 10,209 12,361 11,247
Convertible debt 51,807 50,647 51,136
Retirement benefit obligation - 3,202 -
Deferred taxation liability 3,430 1,851 3,347
Payables 30,402 45,922 49,100
-------------
Total liabilities 1,045,101 1,034,499 1,041,012
------------- ------------- -------------------
Total equity and liabilities 1,286,554 1,247,902 1,269,483
------------- ------------- -------------------
FBD HOLDINGS PLC
Condensed Consolidated Statement of Cash Flows
For the half year ended 30 June 2017
Half year Half year ended 30/06/16 Year
ended (unaudited) ended 31/12/16 (audited)
30/06/17
(unaudited)
EUR000s EUR000s EUR000s
Cash flows from operating
activities
Result before taxation 11,919 (3,652) 13,095
Adjustments for:
(Profit)/Loss on disposal of
investments held for trading (1,070) 4,999 2,596
Loss on investments available for
sale 3,173 1,428 4,467
Interest and dividend income (7,696) (3,806) (14,233)
Depreciation of property, plant
and equipment 6,198 4,232 10,795
Share-based payment
expense/(credit) 585 411 488
Revaluation of investment property - - (1,850)
Revaluation of property, plant and
equipment - - 330
Increase/(Decrease) in insurance
contract liabilities 35,567 (3,433) (3,677)
Increase in other provisions (1,038) 1,424 309
Profit on disposal of discontinued
operation - (1,916) (1,916)
-------------- -------------------------- ---------------------------
Operating cash flows before
movement in working capital 47,638 (313) 10,404
(Increase)/decrease in receivables
and deferred acquisition costs (12,726) (4,647) 64
(Decrease)/increase in payables (19,079) (7,156) (17,252)
Purchase of investments held for
trading (282) (6,506) (13,996)
Sale of investments held for
trading 45,495 7,312 15,473
-------------- -------------------------- ---------------------------
Cash generated from/(used in)
operations 61,046 (11,310) (5,307)
Interest and dividend income
received 6,677 5,923 13,441
Income taxes refunded 59 4,257 5,561
-------------- -------------------------- ---------------------------
Net cash generated from/(used in)
operating activities 67,782 (1,130) 13,695
-------------- -------------------------- ---------------------------
Cash flows from investing
activities
Purchase of available for sale
investments (164,398) (211,231) (322,503)
Sale of available for sale
investments 53,820 160,792 188,746
Purchase of property, plant and
equipment (3,427) (6,502) (12,113)
Sale of property, plant and
equipment 35 - 80
Decrease/(increase) in loans and
advances 27 80 100
Decrease in deposits invested with
banks 51,116 65,656 134,436
Cash inflow from sale of
discontinued operation (net) - 1,930 1,930
-------------- -------------------------- ---------------------------
Net cash (used in)/provided by
investing activities (62,827) 10,725 (9,324)
-------------- -------------------------- ---------------------------
Cash flows from financing
activities
Ordinary and preference - (113) -
dividends paid
Dividends paid to non-controlling
interests - (120) (120)
Proceeds of re-issue of ordinary
shares - - 66
Net cash (used in)/generated from
financing activities - (233) (54)
-------------- -------------------------- ---------------------------
Net increase/(decrease) in cash
and cash equivalents 4,955 9,362 4,317
Cash and cash equivalents at the
beginning of the period 26,561 22,244 22,244
Cash and cash equivalents at the
end of the period 31,516 31,606 26,561
-------------- -------------------------- ---------------------------
FBD HOLDINGS PLC
Condensed Consolidated Statement of Changes in Equity
(UNAUDITED)
For the half year ended 30 June 2017
Ordinary Capital Retained Other Attributable Preference Non-controlling Total
to
share reserves earnings Reserves Ordinary share interests equity
capital shareholders capital
EUR000s EUR000s EUR000s EUR000s EUR000s EUR000s EUR'000 EUR000s
---------- --------- --------- --------- ------------- ----------- ---------------- --------
Balance at 1
January 2017 21,409 19,041 166,866 18,232 225,548 2,923 - 228,471
Result after
taxation - - 10,311 - 10,311 - - 10,311
Other
comprehensive
income - - 2,087 - 2,087 - - 2,087
Total
comprehensive
income for the
period 21,409 19,041 179,264 18,232 237,946 2,923 - 240,869
Recognition of
share based
payments - 584 - - 584 - - 584
Dividend paid to - - - - - - - -
non-controlling
interests
---------- --------- --------- --------- ------------- ----------- ---------------- --------
Balance at 30
June 2017 21,409 19,625 179,264 18,232 238,530 2,923 - 241,453
---------- --------- --------- --------- ------------- ----------- ---------------- --------
Balance at 1
January 2016 21,409 18,553 157,670 18,232 215,864 2,923 451 219,238
Result after
taxation - - (3,031) - (3,031) - (79) (3,110)
Other
comprehensive
income - - (2,764) - (2,764) - - (2,764)
Total
comprehensive
income for the
period 21,409 18,553 151,875 18,232 210,069 2,923 372 213,364
Recognition of
share based
payments - 411 - - 411 - - 411
Dividend paid to
non-controlling
interests - - - - - - (120) (120)
Disposal of
subsidiary
undertaking
(note 5) - - - - - - (252) (252)
---------- --------- --------- --------- ------------- ----------- ---------------- --------
Balance at 30
June 2016 21,409 18,964 151,875 18,232 210,480 2,923 - 213,403
---------- --------- --------- --------- ------------- ----------- ---------------- --------
FBD HOLDINGS PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the half year ended 30 June 2017
Note 1 Statutory information
The half yearly financial information is considered
non-statutory financial statements for the purposes of the
Companies Act 2014 and in compliance with section 340(4) of that
Act we state that:
-- the financial information for the half year to 30 June 2017
does not constitute the statutory financial statements of the
company;
-- the statutory financial statements for the financial year
ended 31 December 2016 have been annexed to the annual return and
delivered to the Registrar;
-- the statutory auditors of the company have made a report
under section 391 Companies Act 2014 in respect of the statutory
financial statements for year ended 31 December 2016; and
-- the matters referred to in the statutory auditors' report
were unqualified, and did not include a reference to any matters to
which the statutory auditors drew attention by way of emphasis
without qualifying the report.
This half yearly financial report has not been audited but has
been reviewed by the auditors of the Company.
Note 2 - Accounting policies
Basis of preparation
The annual financial statements of FBD Holdings plc are prepared
in accordance with International Financial Reporting Standards
("IFRSs") as adopted by the European Union. The condensed set of
financial statements included in this half-yearly financial report
has been prepared in accordance with IAS 34 'Interim Financial
Reporting', as adopted by the European Union.
Going concern
The Directors are satisfied that the Group has sufficient
resources to continue in operation for a period of not less than
twelve months from the date of this report. Accordingly, they
continue to adopt the going concern basis of accounting in
preparing the condensed financial statements.
Consistency of accounting policy
The accounting policies and methods of computation used by the
Group to prepare the interim financial statements for the six month
period ended 30 June 2017 are the same as those used to prepare the
Group Annual Report for the year ended 31 December 2016 except as
described below.
To align with industry practice the Group has reclassified
claims handling expenses to net claims incurred from other
underwriting expenses. This has had no impact on previously
reported profit or equity.
There have been no new standards or amendments to standards
adopted by the Group during the six months ended 30 June 2017 which
have had a material impact on the Group.
FBD HOLDINGS PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the half year ended 30 June 2017
Standards and interpretations not yet effective
IFRS 9 Financial Instruments(1)
IFRS 15 Revenue from Contracts with Customers(1)
IFRS 16 Leases(2)
IFRS 17 Insurance Contracts(3)
(1) Effective for annual periods on or after 1 January 2018,
with earlier application permitted.
(2) Effective for annual periods on or after 1 January 2019,
with earlier application permitted.
(3) Effective for annual periods on or after 1 January 2021,
with earlier application permitted.
The Directors have reviewed the implication of the adoption of
IFRS 9 and IFRS 15. The adoption of these Standards is not expected
to have a material impact (other than presentation and disclosure)
on the Financial Statements of the Group in future periods. The
Directors are currently assessing the implications of the adoption
of IFRS 16 and IFRS 17.
Critical accounting estimates and judgements in applying
accounting policies
The critical accounting estimates and judgements used by the
Group in applying accounting policies are the same as those used to
prepare the Group Annual Financial Statements for the year ended 31
December 2016. While there have been some changes in estimates of
amounts in the current financial period these changes do not have a
significant impact on the results for the period.
Risks and uncertainties
The principal risks and uncertainties faced by the Group are
outlined on pages 17-20 of the Group's Annual Financial Statements
for the year ended 31 December 2016 and remain unchanged.
Note 3 - Segmental information
(a) Operating segments
The principal activities of the Group are underwriting of
general insurance business and financial services. For management
purposes, the Group is organised in two operating segments -
underwriting and financial services. The profit earned by each
segment is reported to the chief operating decision maker, the
Group Chief Executive, for the purpose of resource allocation and
assessment of segmental performance. Central administration costs
and Directors' salaries are allocated based on actual activity.
Restructuring costs and income taxation are direct costs of each
segment. Discrete financial information is prepared and reviewed on
a regular basis for these two segments. The accounting policies of
the reportable segments are the same as the Group accounting
policies. There has been no material change to the assets by
reportable segment from the disclosure in the 2016 Annual
Report.
FBD HOLDINGS PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the half year ended 30 June 2017
The following is an analysis of the Group's revenue and results
from continuing operations by reportable segments:
Half year ended 30/06/2017 Financial
Underwriting Services Total
EUR000s EUR000s EUR000s
Revenue 198,133 4,391 202,524
--------------- ---------- --------
Result before taxation 10,154 1,765 11,919
Income taxation (charge)/credit (1,269) (339) (1,608)
--------------- ---------- --------
Result after taxation 8,885 1,426 10,311
--------------- ---------- --------
Half year ended 30/06/2016 Financial
Underwriting Services Total
EUR000s EUR000s EUR000s
Revenue 193,740 4,439 198,179
--------------- ------------ --------
Result before taxation (4,579) (724) (5,303)
Income taxation credit/(charge) 572 (30) 542
--------------- ------------ --------
Result after taxation (4,007) (754) (4,761)
--------------- ------------ --------
Year ended 31/12/2016 Financial
Underwriting Services Total
EUR000s EUR000s EUR000s
Revenue 388,461 8,542 397,003
--------------- ------------ --------
Result before taxation 9,102 2,340 11,442
Income taxation (charge)/credit (2,188) (227) (2,415)
--------------- ------------ --------
Result after taxation 6,914 2,113 9,027
--------------- ------------ --------
(b) Geographical segments
The Group's operations are located in Ireland.
FBD HOLDINGS PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the half year ended 30 June 2017
Note 4 - Underwriting result
Adjusted(1) Adjusted(1)
Half year Half year Year
ended 30/06/17
(unaudited)
ended ended 31/12/16
30/06/16
(unaudited) (audited)
EUR000s EUR000s EUR000s
Gross premium written 189,650 180,845 361,799
----------------- -------------- -----------------
Net premium earned 158,931 152,020 308,226
Net claims incurred(1) (111,971) (114,955) (227,853)
Motor Insurers Bureau of Ireland Levy (26) (4,998) (7,747)
----------------- -------------- -----------------
46,934 32,067 72,626
----------------- -------------- -----------------
Gross management expenses(1) (40,969) (35,702) (75,399)
Deferred acquisition costs 5,352 (1,850) (2,541)
Reinsurers' share of expenses 1,491 5,643 11,660
Broker commissions payable (1,736) (1,753) (3,126)
----------------- -------------- -----------------
Other Underwriting expenses (35,862) (33,662) (69,406)
----------------- -------------- -----------------
Underwriting result 11,072 (1,595) 3,220
----------------- -------------- -----------------
(1) Adjusted: Claims handling expenses are now reflected in Net
claims and benefits rather than Other underwriting expenses.
Adjustments have been made to comparative periods to reflect
this.
The Group's half yearly results are not subject to any
significant impact arising from the seasonality of operations.
Note 5 - Discontinued operations
Half year Half year
ended
30/06/17
(unaudited)
ended Year ended
31/12/16
(audited)
30/06/16
(unaudited)
EUR000s EUR000s EUR000s
Passage East Ferry Company Ltd result
for the period including profit on sale - 1,653 1,653
-------------- -------------- ------------
- 1,653 1,653
-------------- -------------- ------------
On 23 May 2016 the Group disposed of its 70% interest in the
Passage East Ferry Company Limited.
FBD HOLDINGS PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the half year ended 30 June 2017
Note 6 - Dividends
There were no dividends paid in this period or in the prior
year.
Note 7 - Ordinary share capital
Half year Half year Year
ended 30/06/17
(unaudited)
ended 30/06/16 ended
(unaudited) 31/12/16
(audited)
Number EUR000s EUR000s EUR000s
(i) Ordinary shares
of EUR0.60 each
Authorised:
At beginning and end
of period 51,326,000 30,796 30,796 30,796
------------ ---------------- ---------------- -----------
Issued and fully paid:
At beginning and end
of period 35,461,206 21,277 21,277 21,277
------------ ---------------- ---------------- -----------
(ii) 'A' Ordinary shares
of EUR0.01 each
Authorised:
At beginning and end
of period 120,000,000 1,200 1,200 1,200
------------ ---------------- ---------------- -----------
Issued and fully paid:
At beginning and end
of period 13,169,428 132 132 132
------------ ---------------- ---------------- -----------
Total Ordinary Share
Capital 21,409 21,409 21,409
---------------- ---------------- -----------
The number of ordinary shares of EUR0.60 each held as treasury
shares at 30 June 2017 was 795,005. At 30 June 2016 the number held
was 813,084.
FBD HOLDINGS PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the half year ended 30 June 2017
Note 8 - Earnings/(Loss) per EUR0.60 ordinary share
The calculation of the basic and diluted earnings per share
attributable to the ordinary shareholders is based on the following
data:
Half year Half year Year
ended ended ended 31/12/16
30/06/16 (audited)
30/06/17 (unaudited)
(unaudited)
EUR000s EUR000s EUR000s
Earnings/(loss)
Result for the period 10,311 (3,110) 10,680
Non-controlling interests - 79 79
-------------- ------------- ----------------
Result for the period - attributable
to equity shareholders 10,311 (3,031) 10,759
Adjustments to exclude profit from
discontinued operations - (1,653) (1,653)
Result for the purpose of basic
and diluted
earnings per share (excluding discontinued
operations) 10,311 (4,684) 9,106
--------------
Number of shares
Weighted average number of ordinary
shares for
the purpose of basic earnings per
share 34,666,201 34,648,122 34,654,611
Weighted average number of ordinary
shares for
the purpose of diluted earnings
per share 34,793,837 34,648,122 34,782,247
-------------- ------------- ----------------
From continuing operations Cent Cent Cent
Basic earnings/(loss) per share 30 (14) 26
-------------- ------------- ----------------
Diluted earnings/(loss) per share 30 (14) 26
-------------- ------------- ----------------
From discontinued operations Cent Cent Cent
Basic earnings/(loss) per share - 5 5
------- ----- -----
Diluted earnings/(loss) per share - 5 5
------- ----- -----
Earnings/(loss) per share
From continuing and discontinued Cent Cent Cent
operations
Basic earnings/(loss) per share 30 (9) 31
----- ----- -----
Diluted earnings/(loss) per share 30 (9) 31
----- ----- -----
The 'A' ordinary shares of EUR0.01 each that are in issue have
no impact on the earnings per share calculation.
FBD HOLDINGS PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the half year ended 30 June 2017
Note 9 - Capital Commitments
Half year Half year Year
ended 30/06/17 ended ended
30/06/16 31/12/16
(unaudited) (audited)
(unaudited)
EUR000s EUR000s EUR000s
Capital commitments at period end
authorised by
the Directors but not provided for
in the Financial
Statements:
Contracted for - 3,704 -
---------------- -------------- ------------
Not contracted for - - -
---------------- -------------- ------------
The above capital commitment related to an investment in the
underwriting policy administration system that commenced in 2013.
Rollout of the new system commenced in late June 2016.
Note 10 - Retirement Benefit Plan Assets/(Obligation)
The Group operates a funded defined benefit retirement scheme
for qualifying employees that is closed to future accrual and new
entrants.
The amounts recognised in the Statement of Financial Position
are as follows:
30/06/17 30/06/16 31/12/16
(unaudited) (unaudited) (audited)
EUR000s EUR000s EUR000s
Fair value of plan assets 98,200 122,000 99,602
Present value of defined benefit
obligation (85,700) (125,202) (90,887)
------------ ------------ ----------
Net retirement plan asset/(obligation) 12,500 (3,202) 8,715
------------ ------------ ----------
FBD HOLDINGS PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the half year ended 30 June 2017
Note 11 - Financial Instruments and Fair Value Measurement
(a) Financial Instruments
30/06/17 30/06/16 31/12/16
(unaudited) (unaudited) (audited)
EUR000s EUR000s EUR000s
Financial Assets
At amortised cost:
Deposits with banks 185,781 305,676 236,897
At fair value:
Available for sale investments - unquoted
investments 844 844 844
Available for sale investments - quoted
debt securities 735,639 547,166 628,654
------------ ------------ ----------
Available for sale investments 736,483 548,010 629,498
------------ ------------ ----------
Investments held for trading - quoted
shares 21,928 21,643 24,188
Investments held for trading - quoted
debt securities - 43,038 41,956
Investments held for trading - UCITs 24,231 23,890 24,158
Investments held for trading - unquoted - - -
debt securities
------------ ------------ ----------
Investments held for trading 46,159 88,571 90,302
------------ ------------ ----------
At cost:
Loans 705 752 732
Cash and cash equivalents 31,516 31,606 26,561
------------ ------------ ----------
Financial Liabilities
At amortised cost:
Convertible debt 51,807 50,647 51,136
------------ ------------ ----------
(b) Fair value measurement
The following table compares the fair value of financial assets
and liabilities with their carrying values:
30/06/17 30/06/17 30/06/16 30/06/16 31/12/16 31/12/16
(unaudited) (unaudited) (unaudited) (unaudited) (audited) (audited)
Fair Carrying Fair Carrying Fair Carrying
value value value value value value
EUR000s EUR000s EUR000s EUR000s EUR000s EUR000s
Financial assets
Loans 846 705 752 752 878 732
Financial investments 968,423 968,423 942,257 942,257 956,697 956,697
Financial liabilities
Convertible Debt 54,880 51,807 50,647 50,647 54,880 51,136
The carrying amount of the following financial assets and
liabilities is considered a reasonable approximation of their fair
value:
-- Other receivables
-- Cash and cash equivalents
-- Payables
FBD HOLDINGS PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the half year ended 30 June 2017
The following tables provide an analysis of financial
instruments that are measured subsequent to initial recognition at
fair value, grouped into Levels 1 to 3 based on the degree to which
the fair value is observable.
-- Level 1 fair value measurements are those derived from quoted
prices (unadjusted) in active markets for identical assets or
liabilities.
-- Level 2 fair value measurements are those derived from inputs
other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly (i.e. as
prices) or indirectly (i.e. derived from prices).
-- Level 3 fair value measurements are those derived from
valuation techniques that include inputs for the asset or liability
that are not based on observable market data (unobservable inputs).
Among the valuation techniques used are net asset or net book value
or the net present value of future cash flows based on conservative
operating projections.
30 June 2017 (unaudited) Level Level Level 3 Total
1 2
EUR000s EUR000s EUR000s EUR000s
Assets
Loans - 846 - 846
Investment property - 16,400 - 16,400
Other receivables - 15,905 - 15,905
Financial assets
Investments held for trading
- quoted shares 21,928 - - 21,928
Investments held for trading
- UCIT Funds 24,231 - - 24,231
AFS(1) investments - quoted debt
securities 735,639 - - 735,639
AFS(1) investments - unquoted
investments - - 844 844
Deposits with banks 185,781 - - 185,781
Cash and cash equivalents 31,516 - - 31,516
-------- -------- -------- ----------
Total assets 999,095 33,151 844 1,033,090
-------- -------- -------- ----------
Liabilities
Convertible debt - 54,880 - 54,880
-------- -------- -------- ----------
Total liabilities - 54,880 - 54,880
-------- -------- -------- ----------
(1) Available for sale
FBD HOLDINGS PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the half year ended 30 June 2017
30 June 2016 (unaudited) Level 1 Level Level 3 Total
2
EUR000s EUR000s EUR000s EUR000s
Assets
Loans - 752 - 752
Investment property - 14,550 - 14,550
Property held for own use - 16,350 - 16,350
Financial assets
Investments held for trading
- quoted shares 21,643 - - 21,643
Investments held for trading
- quoted debt securities 43,038 - - 43,038
Investments held for trading
- UCIT Funds 23,890 - - 23,890
AFS(1) investments - quoted debt
securities 547,166 - - 547,166
AFS(1) investments - unquoted
investments - - 844 844
Deposits with banks 305,676 - - 305,676
Cash and cash equivalents 31,606 - - 31,606
-------- -------- -------- ----------
Total assets 973,019 31,652 844 1,005,515
-------- -------- -------- ----------
Liabilities
Convertible debt - 50,647 - 50,647
-------- -------- -------- ----------
Total liabilities - 50,647 - 50,647
-------- -------- -------- ----------
(1) Available for sale
31 December 2016 (audited) Level 1 Level Level 3 Total
2
EUR000s EUR000s EUR000s EUR000s
Assets
Loans - 878 - 878
Investment property - 16,400 - 16,400
Property held for own use - 15,940 - 15,940
Financial assets
Investments held for trading
- quoted shares 24,188 - - 24,188
Investments held for trading
- quoted debt securities 41,956 - - 41,956
Investments held for trading
- UCITs 24,158 - - 24,158
AFS(1) investments - quoted debt
securities 628,654 - - 628,654
AFS(1) investments - unquoted
investments - - 844 844
Deposits with banks 236,897 - - 236,897
Cash and cash equivalents 26,561 - - 26,561
-------- -------- -------- ----------
Total assets 982,414 33,218 844 1,016,476
-------- -------- -------- ----------
Liabilities
Convertible debt - 54,880 - 54,880
-------- -------- -------- ----------
Total liabilities - 54,880 - 54,880
-------- -------- -------- ----------
(1) Available for sale
FBD HOLDINGS PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the half year ended 30 June 2017
A reconciliation of Level 3 fair value measurement of financial
assets is shown in the table below
30/06/17 30/06/16 31/12/16
(unaudited) (unaudited) (audited)
EUR000s EUR000s EUR000s
Opening balance Level 3 financial assets 844 844 844
Additions - - -
Disposals - - -
Unrealised gains/(losses) recognised in Consolidated Income Statement
- - -
Closing balance Level 3 financial assets 844 844 844
------------ ------------ ----------
Available for sale investments grouped into Level 3 consist of a
number of small unquoted investments. The values attributable to
these investments are derived from a number of valuation techniques
including net asset or net book value or the net present value of
future cash flows based on conservative operating projections. A
change in one or more of these inputs could have an impact on
valuations. The maximum exposure the Group has in relation to Level
3 valued financial assets at 30 June 2017 is EUR844,000 (30 June
2016: EUR844,000; 31 December 2016: EUR844,000).
Note 12 - Transactions with related parties
For the purposes of the disclosure requirements of IAS 24, the
term "key management personnel" (i.e. those persons having
authority and responsibility for planning, directing and
controlling the activities of the Group) comprises the Board of
Directors and Company Secretary of FBD Holdings plc and the members
of the Executive Management Team. Full disclosure in relation to
the compensation of the Board of Directors and details of
Directors' share options are provided in the Report on Directors'
Remuneration in the 2016 Annual Report. An analysis of share-based
payment to key management personnel is also included in Note 38 of
the 2016 Annual Report.
Note 13 - Contingent liabilities and contingent assets
There were no contingent liabilities or contingent assets at 30
June 2017, 30 June 2016 or 31 December 2016.
Note 14 - Information
This half yearly report and the Annual Report for the year ended
31 December 2016 are available on the Company's website at
www.fbdgroup.com.
Note 15 - Approval of Half Yearly Report
The half yearly report was approved by the Board of Directors of
FBD Holdings plc on 3 August 2017.
FBD HOLDINGS PLC
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
For the half year ended 30 June 2017
RESPONSIBILITY STATEMENT
The Directors are responsible for preparing the Half Yearly
Financial Report in accordance with the Transparency (Directive
2004/109/EC) Regulations 2007, the related Transparency Rules of
the Central Bank of Ireland and with IAS 34, Interim Financial
Reporting as adopted by the European Union.
We confirm that to the best of our knowledge:
a) the Group condensed set of interim financial statements have
been prepared in accordance with IAS 34 "Interim Financial
Reporting" as adopted by the European Union;
b) the interim management report includes a fair review of the
important events that have occurred during the first six months of
the financial year, and their impact on the condensed set of
interim financial statements and the principal risks and
uncertainties for the remaining six months of the financial
year;
c) the interim management report includes a fair review of
related party transactions that have occurred during the first six
months of the current financial year and that have materially
affected the financial position or the performance of the Group
during that period, and any changes in the related parties'
transactions described in the last Annual Report that could have a
material effect on the financial position or performance of the
Group in the first six months of the current financial year.
On behalf of the Board
Liam Herlihy Fiona Muldoon
Chairman Group Chief Executive
3 August 2017
ALTERNATIVE PERFORMANCE MEASURES (APM's)
The Group uses the following alternative performance measures:
Loss ratio, expense ratio, combined operating ratio, annualised
investment return and net asset value per share.
Loss ratio (LR), expense ratio (ER) and combined operating ratio
(COR) are widely used as a performance measure by insurers, and
give users of the financial statements an understanding of the
underwriting performance of the entity.
Annualised investment return is used widely as a performance
measure to give users of financial statements an understanding of
the performance of an entities investment portfolio.
Net asset value per share (NAV) is a widely used performance
measure which provides the users of the financial statements the
book value per share.
The calculation of the APM's is based on the following data:
Adjusted(1) Adjusted(1)
Half year Half year Year
ended ended 30/06/16 ended 31/12/16
30/06/17 (unaudited) (audited)
(unaudited)
EUR000s EUR000s EUR000s
Loss ratio
Net claims and benefits(1) 111,971 114,955 227,853
Movement in other provisions 26 4,998 7,747
-------------- ----------------
Total claims incurred 111,997 119,953 235,600
Net premium earned 158,931 152,020 308,226
-------------- ---------------- ----------------
Loss ratio (Total claims incurred/Net
premium earned) 70.5% 78.9% 76.4%
--------------
Expense ratio
Other underwriting expenses(1) 35,862 33,662 69,406
Net premium earned 158,931 152,020 308,226
-------------- ---------------- ----------------
Expense ratio (Other underwriting
expenses/Net premium earned) 22.6% 22.1% 22.6%
-------------- ---------------- ----------------
Combined operating ratio % % %
Loss ratio 70.5% 78.9% 76.4%
Expense ratio 22.6% 22.1% 22.6%
-------------- ---------------- ----------------
Combined operating ratio (Loss
ratio + Expense ratio) 93.1% 101.0% 99.0%
-------------- ---------------- ----------------
Annualised investment return EUR000s EUR000s EUR000s
Investment return recognised
in consolidated income statement 3,898 271 8,338
Investment return recognised
in statement of comprehensive
income (423) 9,161 10,371
-------------- ---------------- ----------------
Total investment return 3,475 9,432 18,709
Average underwriting investment
assets 1,033,507 984,244 991,152
Investment return (Total investment
return/Average underwriting investment
assets) 0.7%(2) 1.9%(2) 1.9%
-------------- ---------------- ----------------
Net asset value per share (NAV
per share) EUR000s EUR000s EUR000s
Shareholders' funds - equity
interests 238,530 210,480 225,548
-------------- ---------------- ----------------
Number of shares
Weighted average number of ordinary
shares 34,666,201 34,648,122 34,654,611
-------------- ---------------- ----------------
Cent Cent Cent
Net asset value per share (Shareholders
funds /Weighted average number
of ordinary shares) 688 607 651
-------------- ---------------- ----------------
(1) Adjusted: Claims handling expenses are now reflected in Net
claims and benefits rather than Other underwriting expenses.
Adjustments have been made to comparative periods to reflect
this.
(2) Annualised
Independent review report to FBD Holdings plc
Report on the condensed consolidated interim financial
statements
Our conclusion
We have reviewed FBD Holdings plc's condensed consolidated
interim financial statement (the "interim financial statements") in
half-yearly report of FBD Holdings plc for the six month period
ended 30 June 2017. Based on our review, nothing has come to our
attention that causes us to believe that the interim financial
statements are not prepared, in all material respects, in
accordance with International Accounting Standard 34, Interim
Financial Reporting, as adopted by the European Union and the
Transparency (Directive 2004/109/EC) Regulations 2007 and the
Transparency Rules of the Central Bank of Ireland.
What we have reviewed
The interim financial statements, comprise:
-- the condensed consolidated statement of financial position as at 30 June 2017;
-- the condensed consolidated income statement for the period then ended;
-- the condensed consolidated statement of comprehensive income
for the period then ended;
-- the condensed consolidated statement of cash flows for the period then ended;
-- the condensed consolidated statement of changes in equity for
the period then ended; and
-- the explanatory notes to the interim financial statements.
The interim financial statements included in the half-yearly
report have been prepared in accordance with International
Accounting Standard 34, Interim Financial Reporting, as adopted by
the European Union and the Transparency (Directive 2004/109/EC)
Regulations 2007 and the Transparency Rules of the Central Bank of
Ireland.
As disclosed in note 2 to the interim financial statements, the
financial reporting framework that has been applied in the
preparation of the full annual financial statements of the group is
applicable law and International Financial Reporting Standards
(IFRSs) as adopted by the European Union.
Responsibilities for the interim financial statements and the
review
Our responsibilities and those of the directors
The half-yearly report, including the interim financial
statements, is the responsibility of, and has been approved by, the
directors. The directors are responsible for preparing the
half-yearly report in accordance with the Transparency (Directive
2004/109/EC) Regulations 2007 and the Transparency Rules of the
Central Bank of Ireland.
Our responsibility is to express a conclusion on the interim
financial statements in the half-yearly report based on our review.
This report, including the conclusion, has been prepared for and
only for the company for the purpose of complying with the
Transparency (Directive 2004/109/EC) Regulations 2007 and the
Transparency Rules of the Central Bank of Ireland and for no other
purpose. We do not, in giving this conclusion, accept or assume
responsibility for any other purpose or to any other person to whom
this report is shown or into whose hands it may come save where
expressly agreed by our prior consent in writing.
What a review of interim financial statements involves
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity, issued by the Auditing Practices Board for use in
the United Kingdom and Ireland. A review of interim financial
information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying
analytical and other review procedures.
A review is substantially less in scope than an audit conducted
in accordance with International Standards on Auditing (Ireland)
and, consequently, does not enable us to obtain assurance that we
would become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit
opinion.
We have read the other information contained in the half-yearly
report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the interim financial statements.
Paraic Joyce
for and on behalf of PricewaterhouseCoopers
Chartered Accountants and Statutory Audit Firm
Dublin
3 August 2017
(a) The maintenance and integrity of the FBD Holdings plc
website is the responsibility of the directors; the work carried
out by the auditors does not involve consideration of these matters
and, accordingly, the auditors accept no responsibility for any
changes that may have occurred to the financial statements since
they were initially presented on the website.
(b) Legislation in the Republic of Ireland governing the
preparation and dissemination of financial statements may differ
from legislation in other jurisdictions.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR OKNDBDBKBQFK
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