FBD growth continues on back of strong 2005

IRISH financial services group FBD Holdings said yesterday business continued to grow, as momentum from last year continued into 2006.

“In looking to the future we draw confidence from the past year, when FBD expanded its core business base significantly,” Chairman Michael Berkery said in the text of a speech to be delivered to shareholders at FBD’s annual general meeting.

“I am pleased to say that this progress has continued in the year to date and that we are achieving our overall business targets.”

Shares in FBD were flat at €38.00 in Dublin by 1214 GMT versus a 0.5% stronger Irish market.

Chief Financial Officer Andrew Langford said on Tuesday that the company was on track to meet analysts’ expectations that FBD will post operating earnings per share of 320 to 330 cents this year.

Asked about the falling cost of insurance in Ireland, he said premiums were still coming down although not as fast as last year, with a single-digit percentage decline on the cards for this year.

FBD is under pressure in some quarters to return excess funds to shareholders but its chairman said yesterday it was still reviewing how to make the most of its non-allocated capital.

“The board has decided to retain this capital in the company and to investigate all possible opportunities to invest some or all of it in the group’s primary business of insurance underwriting, or in related financial service activities,” Mr Berkery said.