FBD maintains solid performance
In its latest trading update, covering the period from the beginning of July, FBD said, “barring exceptional claims events during the remainder of the year,” it remains confident of its full-year earnings per share coming in ahead of current market expectations.
Analysts have anticipated full-year operating earnings per share for FBD, to amount to around 86c per share.
“The group expects to deliver operating profits in both its underwriting and non-underwriting businesses in 2009 and is confident that it is well-positioned to deliver profitable growth and superior returns to shareholders going forward,” the statement read.
It added that the group will focus on profitable growth, maintaining underwriting discipline and “constantly evolving its business to reflect customers’ needs“, while also continuing to increase market presence in key urban areas – with a particular focus on the Dublin region.
In this regard, the group has seen an improved take-up of its online services (fbd.ie and NoNonsense.ie) in Dublin and larger urban areas.
FBD’s share price rose by 3.59%, or 23c, yesterday to close that day at €6.63.
The group’s property and leisure businesses in Ireland and Spain have generated operating profits and cash flows in the second half of the year to date, but the company added that over-supply in the marketplace is “the key challenge” facing the two divisions and “market capacity needs to reduce to match falling customer demand”.
“FBD’s financial services businesses continued to deliver solid performances in difficult market environments. These businesses have proactively managed their cost structures to reflect the economic environment.
“The group continues to have a strong capital base and balance sheet and a prudent reserving strategy.
“The board is committed to maintaining strong solvency and liquidity margins,” management said.
