FBD Holdings PLC has released its half-year report for the six months ended 30 June 2024, highlighting several key achievements. The company reported a profit before tax of €32.3 million, a return on equity (ROE) of 12%, and a combined operating ratio (COR) of 88%, reflecting increased insurance revenue, continued underwriting discipline, and favorable prior year reserve development. Gross written premium (GWP) increased by 10% to €226 million, with insurance revenue increasing by 9% to €213 million. The company also approved a special dividend of 100 cent per ordinary share.
The report also noted a policy count growth of 4.5% across Farmer, Business, and Retail sectors, excluding legacy scheme run-off, and an overall policy count growth of 1.1%. FBD Holdings PLC's capital position remains strong with a Solvency capital ratio (SCR) of 204% (unreviewed) after allowing for the special dividend, compared to 213% at 31 December 2023. The company also announced an ESG advocacy initiative of €1.5 million, partnering with UCD Agricultural Science Centre for investment in new agricultural research and education facilities at UCD Lyons Farm.
In terms of financial performance, the company reported a positive investment portfolio return of 1.0% (€11 million) and a positive investment return driven by cash and bond income, as well as strong equity markets. However, the expense ratio increased to 27.7%, impacted by inflationary pressure on staff and IT costs, as well as investment in increased operating capacity to support revenue growth. The net asset value per share reduced from 1,330 cent at the end of 2023 to 1,293 cent, as the dividend payments in May were offset by six months of 2024 profit.
Tomás Ó Midheach, FBD Group Chief Executive, expressed satisfaction with the company's performance, highlighting the growth across all customer sectors and the approval of a special dividend of 100c per ordinary share. He also acknowledged the support of the Board and the wider FBD team for their commitment and hard work in delivering these half-year results. Looking ahead, the company aims to build on this momentum in the second half of the year while delivering sustainable growth.