FBD HOLDINGS PLC 2006 INTERIM RESULTS 1 Forward

FBD HOLDINGS PLC 2006 INTERIM RESULTS 1

Forward Looking Statements This presentation contains certain forward-looking statements. Actual results may differ materially from those projected or implied in such forward-looking statements. Such forward-looking information involves risks and uncertainties that could affect expected results 2

Introduction to FBD Holdings plc • Insurance underwriting……… our primary business – leading position in target markets – strong brand identity • Non – underwriting – property/leisure – financial services • Excellent growth record. 3

Operational Highlights of 2006 to date Underwriting • Strong new business volumes more than offset reduced premium rates. • Policy count at 30 th June 2006 up 7% on December 2005. • Branch network enhanced and Dublin personal lines unit strengthened. • Growth in Dublin market continuing • Increased investment in infrastructure and people - VOIP/Business Support Centre – (Mullingar) - Workflow systems to enhance efficiency - New off-site IT availability for resilience/flexibility 4

Operational Highlights of 2006 to date Non-Underwriting La Cala • Conditional agreement to sell 96 hectares of development land at La Cala entered into on 23 rd February 2006 for a total consideration of € 201 m in phased cash payments, apportioned between two tranches of land. • Initial consideration payment of € 100 m arising on the Tranche I land was received on 22 nd June 2006. Balance of Tranche I consideration of € 21 m due on 30 th June 2007. • Profit before tax of € 83. 6 m on Tranche I land recognised. • Caracala Spa opened at La Cala resort. Sunset/Tower • Improvement in visitor numbers 5

Operational Highlights of 2006 to date Corporate • Farmer Business Developments plc reduces shareholding from 34% to 24. 8% via placing of 4. 5 m shares. (11. 6% of share capital). – FBD partakes in the placing……. buys back 3. 8 m shares (10% of share capital) for € 129 m…. . shares cancelled. – Free float moves to 67% • Special dividend of € 1. 60 per share declared on foot of receipt of consideration for tranche I land at La Cala – total of € 55 m paid 11 th August 2006. 6

Financial Highlights H 1 2006 H 1 2005 € 000 s Gross written premiums 203, 996 192, 360 +6. 0% Net earned premiums 173, 166 164, 515 +5. 3% Underwriting result 41, 649 52, 044 -20. 0% Operating profit 75, 721 86, 849 -12. 8% Profit on sale of land at La Cala 83, 626 - - 157, 445 106, 769 +47. 5% Profit before taxation % 7

Financial Highlights Contd Operating earnings per share Interim dividend proposed per share Special dividend paid per share – La Cala land sale Return on equity H 1 2006 H 1 2005 Cent 173. 11 192. 07 -9. 9% 24. 00 20. 00 +20. 0% 160. 00 - - % % 26% 23% 31/12/05 Net asset value per share 1, 311. 35 1, 250. 62 +4. 9% 8

2006 Interim Results Income Statement H 1 2006 H 1 2005 € 000 s Gross written premiums 203, 996 192, 360 +6. 0% Net earned premiums 173, 166 164, 515 +5. 3% (108, 558) (91, 727) +18. 3% (22, 959) (20, 744) +10. 7% Underwriting Result 41, 649 52, 044 -20. 0% Loss Ratio 62. 7% 55. 8% Net Expense Ratio 13. 2% 12. 6% Combined Ratio 75. 9% 68. 4% Net claims incurred Net operating expenses % 9

2006 Interim Results Income Statement … Contd H 1 2006 € 000 s H 1 2005 € 000 s % Underwriting Result 41, 649 52, 044 -20. 0% Longer term investment return 23, 773 21, 781 +9. 1% Non underwriting operating income 10, 299 13, 024 -20. 9% Operating profit 75, 721 86, 849 -12. 8% 65, 422 73, 825 Operating profit by activity: Insurance underwriting Non-underwriting - Property/leisure 3, 728 6, 355 - Financial services 2, 740 2, 521 - Capital fund 3, 831 10, 299 75, 721 4, 148 13, 024 86, 849 10

2006 Interim Results Income Statement … Contd H 1 2006 H 1 2005 € 000 s Operating profit 75, 721 86, 849 Profit on sale of land at La Cala 83, 626 - 318 21, 738 (2, 220) (1, 818) Profit before tax 157, 445 106, 769 Income tax expense (34, 845) (12, 849) Profit for the year 122, 600 93, 920 Short term fluctuation in investment return Finance costs 11

2006 Interim Results Balance Sheet - Assets 30/6/06 € 000 s 31/12/05 € 000 s Property & Equipment Hotels/golf 170, 876 168, 258 Property – own use 28, 723 28, 665 Fixtures & Fittings 13, 759 213, 358 13, 302 210, 225 Investments Property 59, 916 48, 856 Financial 1, 115, 867 1, 061, 846 79, 494 66, 034 104, 385 73, 058 Reinsurers’ share of technical provisions Other receivables/DAC’s Other Assets Development land 27, 723 36, 163 Work-in-Progress 31, 761 26, 333 Cash 37, 747 Total Assets 97, 231 1, 670, 251 41, 897 104, 393 1, 564, 412 12

2006 Interim Results Balance Sheet - Liabilities 30/6/06 € 000 s 31/12/05 € 000 s 21, 277 23, 557 429, 317 452, 570 450, 594 476, 127 Preference Shareholders 2, 923 Minority Interests 6, 424 6, 423 459, 941 485, 473 Equity Share Capital Reserves Shareholders’ funds – equity interests Total equity Liabilities Technical provisions - Unearned premiums 196, 150 - 725, 738 Claims Deferred tax 188, 953 921, 888 699, 397 32, 077 888, 350 33, 873 Creditors - Loans 100, 803 - Other 155, 542 Total Liabilities 99, 831 256, 345 1, 670, 251 56, 885 156, 716 1, 564, 412 13

2006 Interim Results Statement of Changes in Equity 30/6/06 30/6/05 € 000 s Balance at 1 st January 485, 473 425, 709 Profit for the period 122, 600 93, 920 (129, 212) (81, 238) (14, 277) (10, 298) Available-for-sale investments (6, 325) 861 Purchase of minority interests - (9, 956) 1, 682 2, 152 459, 941 421, 150 Buyback of own shares Dividends paid Other Balance at 30 th June 14

2006 Interim Results Cash Flow Statement 30/6/06 30/6/05 € 000 s 129, 963 58, 589 10, 438 10, 846 (144, 217) (85, 639) Net decrease in cash and cash equivalents (3, 816) (16, 204) Cash and cash equivalents at the beginning of the period 41, 897 51, 362 (334) 1, 395 37, 747 36, 553 Net Cash from operating activities From investing activities Used in financing activities Effect of foreign exchange rate changes Cash and cash equivalents at the end of the period 15

Financial History 2001 2002 2003 2004 2005 H 1 2006 € 000 s € 000 s Gross written premiums 247, 959 325, 809 368, 619 351, 448 389, 472 192, 360 203, 996 Net earned premiums 192, 864 240, 325 290, 320 296, 237 332, 371 164, 515 173, 166 Underwriting result (15, 088) (5, 266) 60, 967 65, 939 90, 450 52, 044 41, 649 30, 184 37, 531 110, 456 124, 724 162, 624 86, 849 75, 721 Operating profit 16

Financial History 2001 2002 2003 2004 2005 H 1 2006 % % % % Loss ratio 94. 9 91. 8 66. 5 66. 7 60. 9 55. 8 62. 7 Net expense ratio 12. 9 10. 4 12. 5 11. 0 11. 9 12. 6 13. 2 107. 8 102. 2 79. 0 77. 7 72. 8 68. 4 75. 9 Combined ratio 17

Financial History 2001 2002 2003 2004 2005 H 1 2006 Cent Cent Operating earnings per share 59. 59 75. 34 227. 38 256. 18 363. 54 192. 07 173. 11 Dividend per share 19. 50 22. 00 27. 50 40. 00 57. 50 20. 00 24. 00 483. 11 510. 13 701. 94 969. 64 1, 250. 62 1, 087. 21 1, 311. 35 Net asset value per share 18

Return on equity 2003 2004 2005 H 1 2006 Underwriting 50. 75% 43. 78% 53. 08% 31. 44% 23. 36% Non underwriting 13. 68% 8. 63% 11. 63% 6. 79% 30. 0% Total 35. 09% 31. 61% 36. 53% 22. 90% 26. 46% 19

Market Share – Gross Written Premium – 2005 (IIF) All Business Total Market 2005 - € 3, 841 m: 2004 - € 3, 957 m : 2003 - € 4, 239 m : 2002 - € 3, 955 m FBD Premium 2005 - € 389 m : 2004 - € 351 m. : 2003 - € 369 m : 2002 - € 326 m 20

OUTLOOK Group • On schedule to deliver a full year operating performance which will fulfil expectations. Underwriting • Price competition and discounting continuing and will continue to impact margins into the future. • Further volume growth targeted. • Further infrastructural and people investment planned. • Recent Government initiatives – outcome awaited. • Claims reserving policy under ongoing review. • Combined ratio to gravitate to European norms. 21

OUTLOOK…Contd. Non-Underwriting • Property/Leisure - Businesses to deliver improved performances in challenging environment. - Operational plans being implemented/ modified to further improve returns. • Financial Services - Falling commercial premiums will impact income of general insurance brokerage. - Impact to be mitigated by excellent retention levels and activity in other financial services businesses. 22

OUTLOOK…Contd. Capital • Proactive approach to capital management confirmed. - Share buyback in June 2006 - Distribution of proceeds of La Cala land sale. • Dividend payout to continue to increase. • Continuing assessment of opportunities to invest in core/related financial businesses with a view to maximising shareholder returns • ……. Meanwhile, prudent investment. 23