FBD Holdings plc 2007 Preliminary Results 1 2007

FBD Holdings plc 2007 Preliminary Results 1

2007 Preliminary Results Forward Looking Statements This presentation contains certain forwardlooking 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

Contents n 2007 Highlights • • • § Page Underwriting 4 Non-Underwriting 8 Corporate 9 Summary Financial Statements • • • Income Statement 10 Balance Sheet 13 Statement of Changes in Equity 15 Cash Flow Statement 16 Return on Equity 17 Gross Claims Run Off 18 § 2007 Market Share 19 § Outlook 20 3

2007 Preliminary Results 2007 Highlights : Underwriting n Excellent Top line performance • • FBD Premium…………………up…………… 0. 2% Irish Market premium (IIF) …. . down………… 5. 7% n Market Share……………increase to…………. 11. 3% n Claims reserves • € 107 m credited to income following review of reserving policy 4

2007 Preliminary Results 2007 Highlights : Underwriting n Support Centre • Purpose: to be an integral, cost efficient, element in FBD’s platform to deliver increased sales and superior customer care. • February 2007……commenced , • December 2007…. 150 staff • Calls handled in H 2: 2007……. . 340, 000 • Branch Office migration……………. 20 offices at year end • Additional time available to branch staff to focus on sales opportunities 50 staff 5

2007 Preliminary Results 2007 Highlights : Underwriting n Strategic Developments Unit Established • • § “No Nonsense” car insurance…. . New stand-alone internet budget priced car product developed E-commerce development and other initiatives to extend customer reach advanced Organisation strengthened…. New appointments/new roles • • Manager – Strategic Developments Manager – I. T. Manager – Insurance Products Manager – E-Commerce Solutions • • Manager – Retail Sales Manager – Marketing Manager – Sales Operations Manager – Support Centre ………. Sales potential and customer care enhanced……… 6

2007 Preliminary Results 2007 Highlights : Underwriting n Investments • • Reduction in equity exposure Restructuring of bond portfolio to reduce volatility 7

2007 Preliminary Results 2007 Highlights : Non-Underwriting n La Cala • n Sunset Beach • • n Record hotel occupancy… 85, 000 apartment nights Record revenues and profits Tower Hotels • n 43 property handovers (2006: 38) Budgets surpassed in challenging market Financial Services • New business growth ………an increased contribution 8

2007 Preliminary Results 2007 Highlights : Corporate n Capital Management n n n Distribution of € 177 m of reserves (June 2007) Share buybacks of € 53 m Continued Ordinary Dividend Growth (cent) 9

2007 Preliminary Results Income Statement 2007 2006 € 000 s % Gross written premiums 407, 953 407, 256 +0. 2% Net earned premiums 350, 321 345, 959 +1. 3% (239, 054) (224, 712) +6. 4% (51, 928) (44, 705) +16. 2% Adjusted Underwriting Result* 59, 339 76, 542 -22. 5% Adjusted Loss Ratio* 68. 2% 65. 0% Net Expense Ratio 14. 8% 12. 9% Adjusted Combined Ratio* 83. 0% 77. 9% Adjusted net claims incurred* Net operating expenses * Adjusted to exclude impact of change in claims reserving policy 10

2007 Preliminary Results Income Statement (contd) 2007 € 000 s 2006 € 000 s % Adjusted Underwriting Result 59, 339 76, 542 -22. 5% Longer term investment return 53, 369 48, 054 +11. 1% Non underwriting operating income 15, 175 33, 919 -55. 3% Adjusted Operating Profit* 127, 883 158, 515 -19. 3% Change in reserving policy 107, 627 - Operating Profit 235, 510 158, 515 112, 708 124, 596 +48. 6% Adjusted Operating Profit by activity*: Insurance underwriting Non-underwriting Leisure & Leisure Property Development - Financial services/other - Capital fund 16, 101 10, 092 5, 882 4, 279 (6, 808) 15, 175 127, 883 * Adjusted to exclude impact of change in claims reserving policy 19, 548 33, 919 158, 515 11

2007 Preliminary Results Income Statement (contd) 2007 2006 € 000 s 235, 510 158, 515 - 81, 774 (69, 253) 61, 350 (4, 089) (4, 859) Profit before tax 162, 168 296, 780 Income tax expense (22, 093) (49, 948) Profit for the year 140, 075 246, 832 316. 33 376. 60 79. 50 69. 00 Operating profit Profit on sale of land at La Cala Short term fluctuation in investment return Finance costs Adjusted operating earnings per share* Dividend per share *Adjusted to exclude impact of change in claims reserving policy 12

2007 Preliminary Results Balance Sheet : Assets Property & Equipment Hotels/golf 31/12/07 31/12/06 € 000 s 192, 352 180, 369 Property – own use 32, 806 33, 195 Fixtures & Fittings 18, 186 243, 344 16, 815 230, 379 Investments Property 83, 019 81, 181 Financial 823, 151 1, 099, 309 Reinsurers’ share of technical provisions 50, 483 72, 553 Other receivables/DAC’s 85, 705 99, 319 Other Assets Development land 30, 781 32, 608 Work-in-Progress 34, 964 33, 825 Cash 35, 618 Total Assets 101, 363 1, 387, 065 37, 423 103, 856 1, 686, 597 13

2007 Preliminary Results Balance Sheet : Equity & Liabilities 31/12/07 31/12/06 € 000 s 21, 277 362, 312 476, 242 383, 589 497, 519 Preference Share Capital 2, 923 Minority Interests 5, 689 6, 476 392, 201 506, 918 Equity Share Capital Reserves Shareholders’ funds – equity interests Total equity Liabilities Technical provisions - Unearned premiums 199, 074 - Claims 612, 852 Deferred tax 197, 507 811, 926 734, 439 27, 738 931, 946 33, 227 Creditors - Loans 60, 406 - Other 94, 794 Total Liabilities 112, 350 155, 200 1, 387, 065 102, 156 214, 506 1, 686, 597 14

2007 Preliminary Results Statement of Changes in Equity 31/12/07 € 000 s 31/12/06 € 000 s Balance at 1 st January 506, 918 485, 473 Profit for the period 140, 675 246, 832 (175, 996) - - (54, 979) Buyback of own shares (52, 606) (129, 213) Dividends paid (25, 430) (22, 693) - (26, 342) (760) 7, 840 392, 201 506, 918 Return of capital Special dividend – La Cala Available-for-sale investments Other Balance at 31 st December 15

2007 Preliminary Results Cash Flow Statement 2007 € 000 s 2006 € 000 s Net Cash from operating activities 121, 263 180, 509 From (used in) investing activities 179, 790 (3, 136) (303, 085) (181, 574) Net decrease in cash and cash equivalents (2, 032) (4, 201) Cash and cash equivalents at the beginning of the period 37, 423 41, 897 227 (273) 35, 618 37, 423 Used in financing activities Effect of foreign exchange rate changes Cash and cash equivalents at the end of the period 16

2007 Preliminary Results Return on Equity Underwriting 2003 2004 2005 2006 2007 50. 75% 43. 78% 53. 08% 58. 44% 49. 46 % Non underwriting 13. 68% 8. 63% 11. 63% 39. 75% 2. 89% Total 35. 09% 31. 61% 36. 53% 50. 61% 31. 69 % 17

2007 Preliminary Results Gross Claims Run-Off Total Claims Outstanding €m Prior Years €m 2001 €m 2002 €m 2003 €m 2004 €m 2005 €m 2006 €m 2007 €m At end of underwriting year - 205 270 262 329 394 341 One year later - 201 222 225 278 306 Two years later - 198 209 206 256 243 - Three years later - 182 198 185 224 - - Four years later - 168 174 166 - - - Five years later - 163 165 - - Six Years later - 158 - - - 1, 142 158 165 166 224 243 306 341 2, 745 (1, 112) (137) (145) (124) (157) (142) (183) (132) (2, 132) 30 21 20 42 67 101 123 209 613 Estimate of cumulative claims: Estimate of cumulative claims Cumulative payments Claims outstanding 18

2007 Preliminary Results Market Shares Gross Written Premium – 2007 (Provisional) Total Market 2007 -€ 3, 604 m: 2006 - € 3, 822 m: 2005 - € 3, 841 m: 2004 - € 3, 933 m : 2003 - € 4, 239 m: 2002 - € 3, 955 m FBD Premium 2007 - € 408 m: 2006 - € 407 m: 2005 - € 389 m: 2004 - € 351 m: 2003 - € 369 m: 2002 - € 326 m 19

2007 Preliminary Results Outlook : Underwriting n Premiums - Market • • § Price reductions have continued into 2008 “Hardening of premiums expected in coming months”… (major Irish Insurer) Combined ratios being reported signal inevitability of price increases q Q: How soon? Claims Environment • Scope for further incremental improvement (Road Safety: Speed cameras / enforcement) Premiums - FBD • • Range of single digit price increases implemented in January 2008 Year to date • Marginal growth in Policy Count • Premium income in line with 2007 • Year ahead q Market should harden… volumes up, premium income up q FBD well positioned to take advantage of impending price increases 20

2007 Preliminary Results Outlook : Underwriting (contd) n Claims • • n n n Year to date q Incidence levels similar to 2007 Year ahead q Budgeting for year to date experience to continue q Average claim costs to rise in line with inflation No-Nonsense Car Insurance • Brand building underway Strategic Initiatives • • • E-commerce developments Metro markets New Products Business Support Centre • Continuing to enhance capacity 21

2007 Preliminary Results Outlook : Non-Underwriting n Leisure and Leisure Property Development • n La Cala Land Sale (Tranche II) • n Challenging Marketing Conditions q Innovative Marketing / Cross Selling q Cost Management Planning expected in 2009 Financial Services • Scope / plans to grow in new markets 22

2007 Preliminary Results Outlook : Corporate n Capital • Ongoing efficient capital management • € 94 m distribution (re: claims reserves) scheduled for mid year • Repatriations since March 2005 - € 496 m (excluding ordinary dividends) • Ordinary Dividend / Earnings Payout continue to grow 23