FBD Holding Plc

Earnings Release • Mar 7, 2025

FBD HOLDINGS PLC

Full Year Results announcement 31 December 2024

FULL YEAR 2024 AT A GLANCE

Gross Written Premium +13%

Policies up on last year +33,000

Profit Before Tax €77m

Ordinary Dividend Proposed 100c

Post Dividend SCR incl. Jan '25 weather 197% (211% excl. weather)

Group Chief Executive, Tomás Ó Midheach said:

"At FBD, we believe our customer focused strategy continues to deliver for our stakeholders. 2024 has been another year of strong performance. This result is underpinned by increased business growth, positive underwriting results and increased investment returns.

The emphasis we place on building and maintaining relationships with our customers has resulted in increased policy count across our portfolios in Farm, Business, Retail and Partners. We are grateful for the strong and enduring connections that have been developed over the years, many of which span generations. Additionally, we are pleased to have significantly added to our customer base over the period.

Today, we are doing more for more customers than ever before, expanding our reach while staying true to the values that have defined FBD for decades. Central to this is our nationwide branch network, providing local expertise and dedicated support to the communities we serve.

At FBD, we fully understand the significant impact of recent severe weather events, particularly the effect Storm Éoywn has had on many of our customers. We are wholly committed to supporting those who rely on us at a time like this. Our priority is to ensure that claims are processed quickly and fairly.

Our sustained growth and prudent capital management has enabled us to deliver four successive years of dividends, demonstrating the strength of the business. Annual dividend sustainability while maintaining a strong capital position, continues to be one of our key goals.

In 2024, we further strengthened our commitment to sustainability in Ireland's agriculture sector, by our pledge to financially support 'The UCD FBD Agricultural Science Centre'. The Centre will foster research and education in the agricultural sector while supporting the next generation of agricultural professionals who will shape a more sustainable future.

I would like to thank the Board for their continued support and the entire FBD team for their dedication and effort.

Looking ahead to 2025, FBD is focused on sustaining this momentum. We firmly believe that our relationship focused approach, supported by a digitally enabled, data enriched organisation will continue to deliver real value for our customers and stakeholders alike."

FBD HOLDINGS PLC 7 March 2025 KEY HIGHLIGHTS

• Profit Before Tax of €77m.
• Proposed ordinary dividend of 100c per share.
• Gross written premium (GWP)¹ increase of 13% to €460m. Insurance revenue increase of 10% to €441m.
• Policy count growth² of 6.3% during 2024, with 33,000 additional policies written in 2024.
• Combined Operating Ratio (COR) of 85%, includes discounting, reflecting continued underwriting discipline and benefitting from favourable prior year reserve development.
• Positive investment portfolio return of 4.0% (€45m), 2.3% (€26m) through the Income Statement and 1.7% (€19m) through Other Comprehensive Income (OCI).
• Average premium² has increased by 5.8%, half of which relates to customers increasing their level of insurance cover and changing business mix.
• Return on Equity¹ (ROE) of 14%.
• The Solvency Capital Ratio of 197% (unaudited, after proposed ordinary dividend), remains strong and allows for the weather events of January 2025 which have not been included in 2024 financial results. Excluding the impact of the January 2025 weather the Solvency Capital Ratio is 211%.
• FBD achieved Gold accreditation for Investors in Diversity through the Irish Centre for Diversity.

FINANCIAL SUMMARY	2024 €000s	2023 €000s
Gross written premium1	460,219	409,0702
Insurance revenue	441,005	401,026
Underwriting result1	66,601	76,459
Investment return	26,087	19,094
Unwind of discounting	(6,234)	(2,911)
Total operating profit	86,454	92,642
Finance & other group costs	(9,389)	(11,232)
Profit before taxation	77,065	81,410
Loss ratio1	57.1%	53.5%
Expense ratio1	27.8%	27.4%
Combined operating ratio1	84.9%	80.9%
Undiscounted combined operating ratio1	86.7%	83.3%
	Cent	Cent
Basic earnings per share	186	194
Net asset value per share1	1,346	1,330

• The largest element of Insurance revenue is GWP which increased by 13% to €460m (2023: €409m² ), with increases coming through all our sectors, and over half the increase coming from our Farmer relationship customers.
• Underwriting result is €67m (2023: €76m) equating to an 85% COR. Continued underwriting discipline, with favourable prior year reserve development is contributing to this.
• The expense ratio increased marginally to 27.8% (2023: 27.4%). The expense ratio includes Insurance acquisition expenses and Non-attributable expenses. Overall costs have been impacted by inflationary increases on employee and IT costs, as well as investment in increased operating capacity to support revenue growth.

1 A reconciliation between IFRS and non-IFRS measures is given in the Alternative Performance Measures (APMs) on pages 22-29. 2 Gross written premium from 2023 has been adjusted to remove a Broker legacy scheme in run-off which has been terminated that included GWP €4.5m and 15,850 policies in 2023. There was no GWP or policies written in 2024.

• The investment portfolio generated a profit through the Income Statement of €26m (2023: €19m) reflecting higher yields on reinvestment of the bond portfolios and positive return on risk assets. The investment return recognised in the OCI of €19m (2023: €41m), was reflective of reduced unrealised losses on the bond portfolios as they approach maturity.
• Net Asset Value per share of 1,346 cent has increased from 1,330 cent at the end of 2023 as a result of profits during the year being offset by ordinary and special dividends totalling €72m paid to shareholders during 2024.

A presentation will be available on our Group website www.fbdgroup.com today.

Enquiries FBD	Telephone
Fiona Meegan, Investor Relations	+353 1 4194885
Drury Communications Paddy Hughes	+353 87 6167811

About FBD Holdings plc ("FBD")

Established in the 1960s by farmers for farmers, FBD has built on our roots in agriculture to become a leading general insurer serving the needs of farmers, businesses and retail customers. With 34 offices throughout Ireland & a multichannel distribution strategy, we are never far away & always ready to support our customers.

Forward Looking Statements

Some statements in this announcement are forward-looking. They represent expectations for the Group's business, and involve risks and uncertainties. These forward-looking statements are based on current expectations and projections about future events. The Group believes that current expectations and assumptions with respect to these forward-looking statements are reasonable. However, because they involve known and unknown risks, uncertainties and other factors, which are in some cases beyond the Group's control, actual results or performance may differ materially from those expressed or implied by such forwardlooking statements.

The following details relate to FBD's ordinary shares of €0.60 each which are publicly traded:

Listing	Euronext Dublin
Listing Category	Premium
Trading Venue	Euronext Dublin
Market	Main Securities Market
ISIN	IE0003290289
Ticker	FBD.I or EG7.IR

OVERVIEW

The Group reported a profit before tax of €77.1m (2023: €81.4m), underpinned by continuing growth in Insurance revenue, positive underwriting results including favourable prior year reserve development of €26.9m (2023: €44.4m) and positive investment returns of €26.1m (2023: €19.1m).

OPERATING PERFORMANCE

Insurance Revenue

Insurance revenue is 10% higher at €441.0m (2023: €401.0m). Gross written premium is the largest part of Insurance revenue and is 12.5% higher than 2023 at €460.2m (2023: €409.1m¹ ), with Farmer, Business and Retail sectors all growing in 2024. Policy count has increased by 6.3%¹ with 33,000 additional policies written in 2024. Retention rates remain consistently high in 2024, particularly in Farmer and Business sectors. New business growth has remained consistently strong in our Farmer sector. Our Retail sector has also performed well with new business growth through FBD Direct as well as with An Post Insurance and Bank of Ireland.

Average premium increased by 5.8%¹ across the portfolio, half of which relates to customers increasing their level of insurance cover and changing business mix, with some premium increases applied reflecting inflationary impacts. Private Motor average premium increased by 5.5%, in response to high levels of inflation and frequency experienced over 2022 to 2024 in relation to Damage claims. Home and Farm average premiums increased by 10.3% and 8.1% respectively, reflecting increases in property sums insured as rebuild costs continued to rise.

1 Gross written premium from 2023 has been adjusted to remove a Broker legacy scheme in run-off which has been terminated that included GWP €4.5m and 15,850 policies in 2023. There was no GWP or policies written in 2024.

Insurance Service Expenses

Insurance service expenses (ISE) increased by €68.4m to €278.5m (2023: €210.1m). The table below splits the ISE into Gross incurred claims, Changes that relate to past service and Insurance acquisition expenses. The Gross incurred claims increase of €28.6m reflects increasing costs due to more normalised weather experience in 2024, Damage claims inflation, and reflects business growth in FBD. Changes that relate to past service of €72.9m include prior year reserve development, gross of reinsurance, as well as other IFRS 17 specific movements in the Risk Adjustment and Discounting. The amount of changes to past service that relate to prior year best estimate reserve development, net of reinsurance, is €26.9m (2023: €44.4m). Expectations for future injury claims inflation have been allowed for within the reserves including an estimate of the impact of the Judicial Council's recommended increase in Damage awards under the Personal Injuries Guidelines. Insurance acquisition expenses of €84.6m form part of the ISE and are referenced below under Expenses.

Insurance Service Expenses	Year-ended 31 Dec 2024	Year-ended 31 Dec 2023
	€000s	€000s
Gross incurred claims	(266,747)	(238,133)
Changes that relate to past service	72,928	103,990
Insurance acquisition expenses	(84,633)	(75,909)
Total Insurance service expenses	(278,452)	(210,052)

Claims Trends

Property notifications increased 23% compared to 2023, with Storm Isha in January 2024 and Storm Darragh in December 2024 contributing significantly to this. The average cost of Property claims increased by 20% in 2024, due to a change in mix of claims, inflation and business interruption settlements.

Injury average settlement costs remained in line with prior year, however they are 7% lower than 2020, signalling a generally positive trend since the introduction of the Personal Injury Guidelines in 2021. FBD's Injuries Resolution Board (IRB) acceptance rates are approaching pre-Guidelines levels. Injury settlement rates increased 16% year on year, driven by the closure of historical cases and an increase in activity through the litigation channel.

For Motor Damage claims, we are seeing indications that these costs are beginning to stabilise in the second half of 2024. However, there is evidence of continued inflationary pressure in Commercial Motor Damage claims.

Weather and Large Claims

Net of reinsurance weather losses in 2024 were higher than that in 2023. This was primarily driven by Storm Isha and Storm Darragh, with a net cost to FBD of €14.7m.

Large injury claims, defined as a value greater than €250,000, in 2024 are slightly lower than the average of the past 10 years.

Expenses

The Group's expense ratio is 27.8% (2023: 27.4%). Insurance acquisition expenses and Non-attributable expenses are combined to calculate the total expense cost of €122.4m (2023: €109.9m). The increase includes inflationary impacts on employee expenses and IT costs along with an increase in depreciation costs as FBD increases capital investment in initiatives that support revenue growth and a more digitally enabled business.

Reinsurance

For 2024, the net expense from reinsurance contracts held reduced by €13.2m to €51.5m. In 2023, there was a significant reduction in the level of expected recoveries relating to Business Interruption claims as a result of the reduction in the associated gross best estimate. Reinsurance expense in 2024 has reduced €5.7m compared to 2023 reflecting reduced lower layer protection.

Combined Operating Ratio (COR)

The Group generated an underwriting result of €66.6m (2023: €76.5m) which translates to a Combined Operating Ratio (COR) of 84.9% (2023: 80.9%). The main driver of the increase in COR is due to higher Insurance Services Expenses as outlined above. The undiscounted COR was 86.7% (2023: 83.3%).

Other Provision Charges

Other provision charges of €6.7m included in the Income Statement (2023: €18.3m), are made up of Motor Insurers' Bureau of Ireland (MIBI) levy of €5.7m, the Motor Insurers Insolvency Compensation Fund (MIICF) contribution of €2.1m, net of small reductions in previous provisions.

Investment Return

FBD's total investment return for 2024 is 4.0% (2023: 5.3%). The investment return recognised in the Consolidated Income Statement is 2.3% (2023: 1.7%) and in the Consolidated Statement of Other Comprehensive Income (OCI) is 1.7% (2023: 3.6%).

The following table compares the Income Statement returns for 2024 to 2023:

	2024	2023	Movement
Group Investment Assets	€000s	€000s	€000s
Corporate Bond Income1	10,170	8,034	+2,136
Government Bond Income	2,274	2,183	+91
Bond realised losses2	(659)	(2,299)	+1,640
Deposits and Cash3	4,516	3,728	+788
Risk Assets4	11,851	12,097	(246)
Investment Property	(658)	(3,221)	+2,563
Expenses	(1,407)	(1,428)	+21
Total	26,087	19,094	+6,993

Corporate bond income increased in 2024 as maturities were re-invested at higher interest rates and allocations increased.

Realised bond losses in 2024 due to book yield enhancement trading; realised losses in 2023 includes €0.95m realised loss due to sale of downgraded bond Return on Deposits and Cash has increased on higher average rates over 2024

4 Equities major driver of Risk asset returns

1

2

3

Income Statement returns from cash and bonds increased in 2024 as bond maturities continue to be reinvested at higher interest rates. Some of this increased return was offset by realised losses on bonds sold to enhance longer-term yield and reduce reinvestment risk. The European Central Bank (ECB) cut interest rates four times in 2024 which, along with tightening credit spreads, contributed to the positive OCI return. Risk assets contributed €11.9m to the overall income statement return with almost all asset classes experiencing positive returns, in large part due to a robust US economy. Private markets funds had another positive year while the valuation of our investment property decreased.

Financial Services and Other Group activities

The Group's financial services operations broke even for 2024 (2023: loss €1.1m) as revenue increased by €1.2m, and costs increased marginally by €0.1m. Costs increased in the Holding Company by €1.6m to €7.3m primarily relating to consultancy costs incurred to support preparation for the new Corporate Sustainability Reporting Directive (CSRD) reporting requirements, as well as inflation.

STATEMENT OF FINANCIAL POSITION

IFRS Capital Position

Ordinary shareholders' funds as at 31 December 2024 amounted to €483.2m (2023: €477.0m). The increase in shareholders' funds is mainly attributed to the following:

• Profit after tax for the year of €67.2m;
• OCI Profit after tax for the year of €11.4m made up of:
  • Mark to market gains on our Bond portfolio of €19.0m;
  • Offset by
    • Insurance finance expense for insurance and reinsurance contracts issued €5.3m;
    • A reduction in the Retirement benefit surplus of €0.7m and
    • €1.6m of tax through Other Comprehensive Income.
• Reduced by ordinary and preference dividend payment of €36.2m related to 2023 financial performance, and special dividend payment of €35.8m, totalling €72.0m;
• Repurchase and cancellation of own shares of €4.0m offsetting dilution from the vesting of awards under the employee share schemes; and
• Increase in share-based payment reserves of €3.6m.

Net asset value per share is 1,346 cent, compared to 1,330 cent per share at 31 December 2023.

Investment Allocation

The Group adopts a conservative investment strategy to ensure that its insurance contract liabilities are matched by cash and fixed interest securities of low risk and similar duration. Cash allocations remained relatively stable while €45m was reallocated to corporate bonds and €35m divested from government bonds. Mark-to-market gains also contributed to the overall increase in bond allocations. The average credit quality of the corporate bond portfolio has remained at A- with its BBB rated bond allocation stable at circa 39%. There was a €40m divestment from the risk asset portfolio to fund dividends and optimise the solvency capital position. The value of the investment property reduced due to revaluation.

The allocation of the Group's investment assets is as follows:

	31 December 2024		31 December 2023
	€m	%	€m	%
Corporate bonds	642	54%	575	49%
Government bonds	250	21%	281	24%
Deposits and cash	152	13%	145	12%
Risk assets	133	11%	161	14%
Investment property	11	1%	12	1%
Total investment assets	1,188	100%	1,174	100%

Solvency II

The latest Solvency Capital Ratio (SCR) is 197% (unaudited) after proposed ordinary dividend and weather events of January 2025 (31 December 2023: 213%). The SCR before January 2025 weather was approximately 211% reflecting gains generated through 2024 profits, partially offset by the 2024 special dividend and the proposed ordinary dividend relating to the 2024 financial year. Our capital position remains strong, and well in excess of our target risk appetite range of 150% - 170%.

Dividend

The Group's Dividend Policy intends to reward shareholders through dividends while retaining sufficient capital in order to maintain a healthy capital adequacy to support future capital requirements. The Group has a robust liquidity and capital position. Given the Group's strong financial performance in 2024 the Board proposes to pay an ordinary dividend of 100 cent per share for the 2024 financial year (2023: ordinary dividend of 100 cent per share).

During 2024 the Board also approved a special dividend of 100 cent per ordinary share returning a portion of the excess capital to shareholders, which was announced on 9 August 2024 and paid on 18 October 2024.

Subject to the approval of shareholders at the Annual General Meeting to be held on 8 May 2025, the final dividend for 2024 will be paid on 11 June 2025 to the holders of shares on the register on 2 May 2025. The dividend is subject to dividend withholding tax ("DWT") except for shareholders who are exempt from DWT and who have furnished a properly completed declaration of exemption to the Company's Registrar from whom further details may be obtained.

INDUSTRY ENVIRONMENT

Following the first review of the Personal Injuries Guidelines, the Judicial Council has recommended an overall increase of 16.7% in damages to be awarded for personal injuries. This amendment will require Oireachtas approval before being enacted. We welcome the inclusion of motor claims in the IRB mediation process. FBD fully supports the work of the Government on the insurance reform agenda.

Under road legislation, Automatic Number Plate Recognition (ANPR) details continue to be provided to An Garda Síochana on a daily basis. Enhancements to the Irish Motor Insurance Database are ongoing with insurers required to provide driver numbers for all policyholders and named drivers, on a phased basis. The initial phase is due for completion in 2025 and is for private cars only, with further phases to follow for the remaining motor portfolios.

ESG AND SUSTAINABILITY

Building on the launch of our Corporate Advocacy initiative in 2023 of 'The Padraig Walshe Centre for Sustainable Animal and Grassland Research', FBD and University College Dublin (UCD) announced a major investment in new agricultural research and education facilities in 2024. We continue to focus on where we can have a meaningful impact, by delivering on our ESG commitments and supporting our customers in theirs, and continue to have a strong presence at the heart of the community we serve.

FBD has prepared our first Sustainability Statement as part of meeting our reporting obligations in accordance with the EU's new Corporate Sustainability Reporting Directive (CSRD), as well as the European Sustainability Reporting Standards (ESRS). The Sustainability Statement section is included in FBD Holdings plc Annual Report 2024.

In January 2024 FBD became a signatory of the UN Environment Programme Finance Initiative Principles for Sustainable Insurance ("UNEP FI PSI") and our report is available on the PSI website. As part of this initiative, we continue to embed the principles into our business and will report annually on our progress as we continue our sustainability journey.

RISKS AND UNCERTAINTIES

The principal risks and uncertainties faced by the Group are outlined on pages 18 to 27 of the Group's Annual Report for the year ended 31 December 2024.

The Group continues to maintain a strong regulatory solvency position. The annual Own Risk and Solvency Assessment 'ORSA' provides a comprehensive view and understanding of the risks to which the Group is exposed or could face in the future and how they translate into capital needs or alternatively require mitigation actions. Such risks include assessing the capital impact of a number of physical, transitional and liability related scenarios connected to Climate Change.

During 2024 there was significant inflation in relation to Property claims. Following constant monthly increases post covid, there was some stabilisation in average Motor Damage costs during 2024. The Group's Claims team are closely monitoring the effects of inflation on Property and Motor Damage claims.

The US approach to international and trade relations is a likely source of volatility while the threat of tariffs and trade wars, along with other economic policies, has the potential to increase inflation. The Eurozone faces risks from a trade war and the possibility of being forced to fund Ukraine without US assistance. Ireland as a small open economy is particularly exposed to impacts of a global trade war and the US is the largest single bilateral trading partner and largest source of foreign direct investment. The intent to rebalance the global taxation landscape in the US' favour poses risks to corporation tax receipts that are heavily reliant on US multinationals. Endeavours to end the major conflicts in the Middle East and Ukraine carry risks of escalation if agreements are not reached. An escalation in these risks may impact the Group in the form of market, economic and inflation risk.

The Group continues to manage liquidity risk through ongoing monitoring of forecast and actual cash flows. The Group's cash flow projections from its financial assets are well matched to the cash flow projections of its liabilities. The Group holds cash resources at a higher level than its minimum liquidity requirement in order to mitigate any liquidity stress events. All of the Group's fixed term deposits are with financial institutions which have a minimum A- rating. The Group's asset allocation is outlined on page 6.

The Group has a strategic planning cycle which commences with a fundamental review of strategy at least every 5 years (normally every 3 years). The Group has a 2025-2029 Strategy in place which notes the importance of a clear ESG strategy, as well as having defined metrics and targets to ensure the Group is making a meaningful impact on wider ESG considerations.

Key risks to operational resilience include increasing incidence of cyber threats and outsourcing risks (e.g., third-party cloud service providers). FBD has demonstrated financial and operational resilience through the past few challenging years (i.e., in the face of COVID-19 pandemic, impacts of Russia-Ukraine war, and higher inflation and interest rates). This resilience was achieved by maintaining a strong capital position and ensuring appropriate governance, risk management and control frameworks are in place.

The Group has developed its insurance underwriting strategy to diversify the type of insurance risks written and, within each of the types of cover, to achieve a sufficiently large population of risks to reduce the variability of the expected outcome. The principal insurance cover provided by the Group include Motor, Employers' and Public Liability and Property.

Higher frequency and severity of weather events faced globally may impact the cost and availability of reinsurance. This could lead to higher than projected reinsurance costs over the strategic period or even reduced cover on programs if capacity is reduced. Regular review of the Group's reinsurers' credit ratings and reinsurer's outstanding balances is in place. All of the Group's reinsurers have a credit rating of A- or better.

Over the past few years, there has been an increase in frequency and severity of natural catastrophe events observed globally - which may be an indication of climate change. The management of climate risk is strategically important to the Group, from both a commercial and stakeholder perspective. It is an area of focus for the Group and under active consideration, particularly, physical risks to property and person from variable weather patterns and long-term climate change and transition risks from the process of adjustment to a low carbon economy.

OUTLOOK

The economic outlook for 2025 is positive with the Irish economy expected to operate at close to its sustainable capacity. The economy is at full employment which, along with budgetary spending and infrastructure constraints, could fuel overheating risks and impact competitiveness. The continued strong performance of the US economy should support the Irish economy in the short term, assuming no negative impact from the aforementioned geopolitical risks. The outlook beyond 2025 is less certain due to the potential impact of policy changes from the new US administration which may result in tariffs and trade wars, with a resultant impact on inflation.

The Judicial Council has recommended a 16.7% increase of the Personal Injury Guidelines. This amendment requires Oireachtas approval before being enacted. While there are no clear timelines for implementation, we have allowed for the estimated impact in our reserves at 31 December 2024. Although we have seen some stabilisation in Motor Damage inflation, we continue to see underlying inflation in Property lines and expect this to continue, albeit at a lower level, into 2025.

Income projections on our bond portfolio have increased in the years ahead due to the impact of higher reinvestment rates as existing bonds mature. The bond portfolio still carries significant unrealised losses which are expected to unwind as the bonds approach maturity. The ECB is projected to make around four rate cuts over 2025 for a terminal rate of approximately 2%¹ , with weakening growth prospects suggesting this could go lower. The normalisation of the yield curve accelerates the pull-to-par effect on the short-end bonds which carry the majority of the unrealised losses. Conversely credit spreads remain close to historical lows and the medium-term expectation is for these to rise with an ensuing negative impact on mark-to-market returns.

The reinsurance programme for 2025 was successfully renegotiated with some minor changes. Exposure growth related to growth in our Property lines (e.g. Home, Farm and Commercial Multiperil) contributed to an increase in the retention and upper limit of the Property Catastrophe programme. Reinsurance market conditions were more favourable than recent years with a reduction in reinsurance rates of 1.4% for Casualty and 8.8% for Property on the comparable renewed cover.

Storm Éowyn, which occurred on Friday 24 January, is set to be the single biggest storm in FBD's history. This followed the very cold spell of early January, which led to a significant amount of snow related damage. While it is still too early to determine the total number and gross cost of claims from the weather events of January 2025, FBD's reinsurance programme provides cover for extreme events, and this will mitigate the financial impact to FBD. As a result, the overall net cost (including reinstatement premium) for January 2025 weather is currently expected to be approximately €30m.

Our focus remains to be a digitally enabled, data enriched organisation that delivers an excellent customer and employee experience. Our customers are at the heart of what we do, and they stay with us for the value we offer and the support that they receive. We are committed to enhancing both our customer and employee offerings, strengthening our digital capabilities, and consistently providing an excellent service to our growing customer base. In 2025 and beyond, we are focussing on continuous improvement, to create capacity while enhancing our customer value and employee experience.

FBD continues to deliver measured profitable growth, while maintaining underwriting and expense discipline to ensure we continue to deliver for all our stakeholders.

FBD is profitable and growing and believes that this will continue, with a Combined Operating Ratio² of mid 90s achievable for 2025 including the impact of January 2025 weather.

1 Bloomberg market pricing

2 Please see the Alternative Performance Measures on pages 22 to 29 for the definition of Combined Operating Ratio.

FBD HOLDINGS PLC CONSOLIDATED INCOME STATEMENT For the financial year ended 31 December 2024

	2024	2023
	€000s	€000s
Insurance revenue	441,005	401,026
Insurance service expenses	(278,452)	(210,052)
Reinsurance expense	(34,082)	(39,776)
Change in amounts recoverable from reinsurers for incurred claims	(17,371)	(24,890)
Net expense from reinsurance contracts held	(51,453)	(64,666)
Insurance service result	111,100	126,308
Total investment return	26,087	19,094
Finance expense from insurance contracts issued	(7,459)	(4,160)
Finance income from reinsurance contracts held	1,225	1,249
Net insurance finance expenses	(6,234)	(2,911)
Net insurance and investment result	130,953	142,491
Other finance costs	(2,556)	(2,559)
Non-attributable expenses	(37,804)	(34,018)
Other provision charges	(6,695)	(18,331)
Revenue from contracts with customers	3,667	2,468
Financial services income and expenses	(10,600)	(6,933)
Revaluation/(Impairment) of property, plant and equipment	100	(1,708)
Profit before taxation	77,065	81,410
Income taxation charge	(9,860)	(11,869)
Profit for the period	67,205	69,541
Attributable to:
Equity holders of the parent	67,205	69,541
	2024	2023
Earnings per share	Cent	Cent
Basic	186	194
Diluted1	183	190

1 Diluted earnings per share reflects the potential vesting of share-based payments.

FBD HOLDINGS PLC CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the financial year ended 31 December 2024

	2024	2023
	€000s	€000s
Profit for the period	67,205	69,541
Items that will or may be reclassified to profit or loss in subsequent periods:
Movement on investments in debt securities measured at FVOCI	18,426	39,423
Movement transferred to the Consolidated Income Statement on disposal during the period	605	1,969
Finance expense from insurance contracts issued	(6,197)	(17,253)
Finance income from reinsurance contracts held	927	3,676
Income tax relating to these items	(1,720)	(3,477)
Items that will not be reclassified to profit or loss:
Re-measurements of post-employment benefit obligations, before tax	(699)	(1,608)
Revaluation/(Impairment) of owner-occupied property	5	(84)
Income tax relating to these items	86	229
Other comprehensive income after taxation	11,433	22,875
Total comprehensive income for the period	78,638	92,416
Attributable to:
Equity holders of the parent	78,638	92,416

FBD HOLDINGS PLC CONSOLIDATED STATEMENT OF FINANCIAL POSITION At 31 December 2024

Assets	2024	2023
	€000s	€000s
Cash and cash equivalents	152,320	142,399
Equity and debt instruments at fair value through profit or loss	132,767	161,178
Debt instruments at fair value through other comprehensive
income	891,956	855,989
Deposits	—	2,885
Investment assets	1,024,723	1,020,052
Other receivables	22,631	17,150
Loans	386	478
Reinsurance contract assets	75,096	97,520
Retirement benefit surplus	6,393	7,044
Intangible assets	36,789	27,735
Policy administration system	10,750	17,926
Investment property	11,300	11,953
Right of use assets	2,741	3,503
Property, plant and equipment	23,139	20,821
Deferred taxation asset	—	493
Total assets	1,366,268	1,367,074

FBD HOLDINGS PLC CONSOLIDATED STATEMENT OF FINANCIAL POSITION At 31 December 2024

Liabilities and equity	2024	2023
	€000s	€000s
Liabilities
Current taxation liabilities	1,429	2,230
Other payables	43,066	35,852
Other provisions	14,398	20,083
Reinsurance contract liabilities	73	480
Insurance contract liabilities	767,779	774,921
Lease liabilities	3,056	3,828
Subordinated debt	49,780	49,721
Deferred taxation liabilities	560	-
Total liabilities	880,141	887,115
Equity
Called up share capital presented as equity	21,768	21,744
Capital reserves	27,932	34,479
Retained earnings	445,263	444,617
Other reserves	(11,759)	(23,804)
Shareholders' funds - equity interests	483,204	477,036
Preference share capital	2,923	2,923
Total equity	486,127	479,959
Total liabilities and equity	1,366,268	1,367,074

FBD HOLDINGS PLC CONSOLIDATED STATEMENT OF CASH FLOWS For the financial year ended 31 December 2024

	2024	2023
	€000s	€000s
Cash flows from operating activities
Profit before taxation	77,065	81,410
Adjustments for:
Movement on investments classified as fair value	(10,125)	(7,960)
Interest and dividend income	(18,023)	(15,653)
Depreciation/amortisation of property, plant and equipment, intangible assets and
policy administration system	15,287	12,012
Depreciation on right of use assets	762	787
Fair value movement on investment property	600	3,099
(Revaluation)/Impairment of property, plant and equipment	(100)	1,708
Other non-cash adjustments	3,520	2,602
Operating cash flows before movement in working capital	68,986	78,005
Movement on insurance and reinsurance contract liabilities/assets	9,605	(26,270)
Movement on other provisions	(5,685)	8,980
Movement on receivables	(6,489)	(3,961)
Movement on payables	9,625	2,642
Cash generated from operations	76,042	59,396
Interest and dividend income received	19,230	17,854
Income taxes paid	(11,142)	(12,161)
Net cash generated from operating activities	84,130	65,089
Cash flows from investing activities
Purchase of investments classified as fair value through profit or loss	(12,071)	(34,803)
Sale of investments classified as fair value through profit or loss	52,070	19,041
Purchase of investments classified as FVOCI	(126,185)	(135,372)
Sale of investments classified as FVOCI	107,791	151,277
Purchase of property, plant and equipment	(4,606)	(2,188)
Additions to policy administration system	—	(1,401)
Sale of investment property	53	—
Purchase of intangible assets	(14,772)	(16,186)
Maturities of deposits invested with banks	2,885	10,000
Additional deposits invested with banks	—	(2,885)
Net cash generated from / (used in) investing activities	5,165	(12,517)
Cash flows from financing activities
Ordinary and preference dividends paid	(72,080)	(72,026)
Purchase and cancellation of own shares	(4,000)	—
Interest payment on subordinated debt	(2,500)	(2,500)
Principal elements of lease payments	(924)	(955)
Net cash used in financing activities	(79,504)	(75,481)
Net increase/(decrease) in cash and cash equivalents	9,791	(22,909)
Cash and cash equivalents at the beginning of the year	142,399	165,240
Effect of exchange rate changes on cash and cash equivalents	130	68
Cash and cash equivalents at the end of the year	152,320	142,399

FBD Holdings plc Consolidated Statement of Changes in Equity For the financial year ended 31 December 2024

	Called up share capital presented as equity	Capital reserves	Other reserves	Retained earnings	Attributable to ordinary shareholders	Preference share capital	Total equity
	€000s	€000s	€000s	€000s	€000s	€000s	€000s
Balance at 1 January 2023	21,583	30,192	(48,087)	450,318	454,006	2,923	456,929
Profit after taxation	—	—	—	69,541	69,541	—	69,541
Other comprehensive income/(expense) for the period	—	—	24,283	(1,408)	22,875	—	22,875
Total comprehensive income for the period	—	—	24,283	68,133	92,416	—	92,416
Dividends paid and approved on ordinary and preference shares	—	—	—	(72,026)	(72,026)	—	(72,026)
Issue of ordinary shares1	161	1,647	—	(1,808)	—	—	—
Recognition of share-based payments	—	2,640	—	—	2,640	—	2,640
Balance at 31 December 2023	21,744	34,479	(23,804)	444,617	477,036	2,923	479,959
Balance at 1 January 2024	21,744	34,479	(23,804)	444,617	477,036	2,923	479,959
Profit after taxation	—	—	—	67,205	67,205	—	67,205
Other comprehensive income/(expense) for the period	—	—	12,045	(612)	11,433	—	11,433
Total comprehensive income for the period	—	—	12,045	66,593	78,638	—	78,638
Dividends paid and approved on ordinary and preference shares	—	—	—	(72,080)	(72,080)	—	(72,080)
Purchase of own shares	—	(4,000)	—	—	(4,000)	—	(4,000)
Cancellation of own shares	(190)	4,190	—	(4,000)	—	—	—
Issue of ordinary shares1	214	1,650	—	(1,864)	—	—	—
Recognition of share-based payments	—	3,610	—	—	3,610	—	3,610
Transfer of share-based payments to retained earnings	—	(11,997)	—	11,997	—	—	—
Balance at 31 December 2024	21,768	27,932	(11,759)	445,263	483,204	2,923	486,127

1 In 2023 and 2024 new ordinary shares were allotted to employees of FBD Holdings plc as part of the performance share awards scheme.

Note 1 EARNINGS PER €0.60 ORDINARY SHARE

The calculation of the basic and diluted earnings per share attributable to the ordinary shareholders is based on the following data:

Number of shares	2024	2023
	No.	No.
Weighted average number of ordinary shares for the purpose of basic earnings per share (excludes treasury shares)	35,954,427	35,787,761
Weighted average number of ordinary shares for the purpose of diluted earnings per share (excludes treasury shares)	36,624,115	36,650,830
	Cent	Cent
Basic earnings per share	186	194
Diluted earnings per share	183	190

The 'A' ordinary shares of €0.01 each that are in issue have no impact on the earnings per share calculation. The below table reconciles the profit attributable to the parent entity for the year to the amounts used as the numerators in calculating basic and diluted earnings per share for the year and the comparative year including the individual effect of each class of instruments that affects earnings per share:

	2024	2023
	€000s	€000s
Profit attributable to the parent entity for the year	67,205	69,541
2024 dividend of 8.4 cent (2023: 8.4 cent) per share on 14% non-cumulative preference shares of €0.60 each	(113)	(113)
2024 dividend of 4.8 cent (2023: 4.8 cent) per share on 8% non-cumulative preference shares of €0.60 each	(169)	(169)
Profit for the year for the purpose of calculating basic and diluted earnings	66,923	69,259

The below table reconciles the weighted average number of ordinary shares used as the denominator in calculating basic earnings per share to the weighted average number of ordinary shares used as the denominator in calculating diluted earnings per share including the individual effect of each class of instruments that affects earnings per share:

	2024	2023
	No.	No.
Weighted average number of ordinary shares for the purposes of calculating
basic earnings per share	35,954,427	35,787,761
Potential vesting of share-based payments	669,688	863,069
Weighted average number of ordinary shares for the purposes of calculating
diluted earnings per share	36,624,115	36,650,830

Note 2 DIVIDENDS

	2024	2023
	€000s	€000s
Paid during year:
2023 dividend of 8.4 cent (2022: 8.4 cent) per share on 14% non-cumulative preference
shares of €0.60 each	113	113
2023 dividend of 4.8 cent (2022: 4.8 cent) per share on 8% non-cumulative preference
shares of €0.60 each	169	169
2023 final dividend of 100.0 cent (2022: 100.0 cent) per share on ordinary shares of €0.60
each	35,902	35,884
2024 special dividend of 100.0 cent (2023: 100.0 cent) per share on ordinary shares of
€0.60 each	35,869	35,860
Total dividends paid	72,080	72,026
	2024	2023
	€000s	€000s
Proposed:
2024 dividend of 8.4 cent (2023: 8.4 cent) per share on 14% non-cumulative preference
shares of €0.60 each	113	113
2024 dividend of 4.8 cent (2023: 4.8 cent) per share on 8% non-cumulative preference
shares of €0.60 each	169	169
2024 final dividend of 100.0 cent (2023: 100.0 cent) per share on ordinary shares of €0.60
each	35,897	35,857
Total dividends proposed	36,179	36,139

The proposed dividend excludes any amounts due on outstanding share awards as at 31 December 2024 that are due to vest in April 2025 and is subject to approval by shareholders at the AGM on 8 May 2025. The proposed dividends have not been included as a liability in the Consolidated Statement of Financial Position as at 31 December 2024.

Note 3 CALLED UP SHARE CAPITAL PRESENTED AS EQUITY

	Number	2024	2023
		€000s	€000s
(i) Ordinary shares of €0.60 each
Authorised:
At the beginning and the end of the year	51,326,000	30,796	30,796
Issued and fully paid:
At 1 January 2023	35,751,284	—	21,451
Issued during the year	269,688	—	161
At the end of the year	36,020,972	—	21,612
At 1 January 2024	36,020,972	21,612	—
Share cancellation	(316,200)	(190)	—
Issued during the year	356,417	214	—
At the end of the year	36,061,189	21,636	—
(ii) 'A' Ordinary shares of €0.01 each
Authorised:
At the beginning and the end of the year	120,000,000	1,200	1,200
Issued and fully paid:
At the beginning and the end of the year	13,169,428	132	132
Total – issued and fully paid		21,768	21,744

The 'A' ordinary shares of €0.01 each are non-voting. They are non-transferable except only to the Company. Other than a right to a return of paid-up capital of €0.01 per 'A' ordinary share in the event of a winding up, the 'A' ordinary shares have no right to participate in the capital or the profits of the Company.

The holders of the two classes of non-cumulative preference shares rank ahead of the two classes of ordinary shares in the event of a winding up. Before any dividend can be declared on the ordinary shares of €0.60 each, the dividend on the non-cumulative preference shares must firstly be declared or paid.

The number of ordinary shares of €0.60 each held as treasury shares at the beginning (and the maximum number held during the year) was 164,005 (2023: 164,005). No ordinary shares were reissued from treasury during the year under the FBD Performance Plan. The number of ordinary shares of €0.60 each held as treasury shares at the end of the year was 164,005 (2023: 164,005). This represented 0.5% (2023: 0.5%) of the shares of this class in issue and had a nominal value of €98,403 (2023: €98,403). There were no ordinary shares of €0.60 each purchased by the Company during the year.

The weighted average number of ordinary shares of €0.60 each in the earnings per share calculation has been reduced by the number of such shares held in treasury.

All issued shares have been fully paid.

Note 4 TRANSACTIONS WITH RELATED PARTIES

Farmer Business Developments plc and FBD Trust CLG have a substantial shareholding in the Group at 31 December 2024. Details of their shareholdings and related party transactions are set out in the Annual Report.

Both companies have subordinated debt investment in the Group. Farmer Business Developments plc holds a €21.0m investment and FBD Trust CLG holds a €12.0m investment. During 2024 interest payments of €1.1m and €0.6m were made to Farmer Business Developments plc and FBD Trust CLG respectively. Please refer to note 26 in the Annual Report.

At 31 December 2024 the intercompany balances (FBD Holdings plc) with other subsidiaries was a receivable of €5,162,000 (2023: receivable of €4,350,000).

For the purposes of the disclosure requirements of IAS 24, the term "key management personnel" (i.e. those persons having authority and responsibility for planning, directing and controlling the activities of the Group) comprises the Board of Directors and Company Secretary of FBD Holdings plc and the Group's primary subsidiary, FBD Insurance plc and the members of the Executive Management Team.

The remuneration of key management personnel ("KMP") during the year was as follows:

	2024	2023
	€000s	€000s
Short term employee benefits1	5,641	5,077
Post-employment benefits	288	306
Share-based payments	2,052	1,436
Charge to the Consolidated Income Statement	7,981	6,819

1 Short term benefits include fees to Non-Executive Directors, salaries and other short-term benefits to all key management personnel.

Full disclosure in relation to the 2024 and 2023 compensation entitlements and share awards of the Board of Directors is provided in the Annual Report.

At 31 December 2024 KMP had loans to the value of €12,600 with the Group (December 2023: €16,535). KMP loans with the Group did not exceed these values at any stage during the year.

In common with all shareholders, Directors received payments/distributions related to their holdings of shares in the Company during the year, amounting in total to €221,000 (2023: €146,000).

Note 5 Subsequent Events

On 24 January 2025, Storm Éowyn occurred, marking the most significant storm event in FBD's history. This followed a period of extreme cold weather earlier in the month, which resulted in substantial snow-related damage.

While the total number and gross cost of claims related to these weather events remain uncertain at this stage, FBD's reinsurance programme provides coverage for extreme events, mitigating the financial impact. As a result, the estimated net cost to FBD, including the reinstatement premium, is currently expected to be approximately €30 million.

As these events occurred after the reporting date, they are non-adjusting events under IAS 10 Events after the Reporting Period, and no adjustments have been made to the financial statements in respect of these weather events.

There have been no adjusting subsequent events that would have a material impact on the financial statements.

Note 6 General Information and Accounting Policies

The financial information set out in this document does not constitute full statutory financial statements for the years ended 31 December 2024 or 2023 but is derived from same. The Group financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union, applicable Irish law and the listing Rules of Euronext Dublin and comply with Article 4 of the EU IAS Regulation.

The 2024 and 2023 financial statements have been audited and received unqualified audit reports.

The 2024 financial statements were approved by the Board of Directors on 6 March 2025.

The Consolidated financial statements are prepared under the historical cost convention as modified by the revaluation of property, investments held for trading, available for sale investments and investment property which are measured at fair value.

ALTERNATIVE PERFORMANCE MEASURES (APM's) (unaudited)

The Group uses the following alternative performance measures: Loss ratio, undiscounted loss ratio, expense ratio, combined operating ratio, undiscounted combined operating ratio, actual investment return ratio, net asset value per share, return on equity, underwriting result and gross written premium. APMs are supplementary and not a substitute for measures defined in IFRS. All APMs refer to past events and do not represent forecasted measures.

The calculation of the APMs is based on the following data:

Loss Ratio

The loss ratio measures the claims incurred net of reinsurance result as a percentage of insurance revenue. It serves as a core indicator of underwriting performance. It helps investors understand the profitability of the Group's core underwriting business. It is a consistent metric across the industry, making it a reliable comparison for performance. The loss ratio is used to evaluate profitability of the Insurance business.

Formula: Loss Ratio = Total claims incurred and movement in other provision charges / Insurance revenue × 100

Components:

• Total claims incurred and movement in other provision charges: Represents the total financial impact recognised during the reporting period due to policyholder claims, related provisions, and associated movements in the insurer's financial obligations. This metric provides a comprehensive view of the company's claims-related expenses and adjustments affecting its liability position.

The component above includes:

• Incurred claims and other expenses: This includes claims paid during the reporting period and changes in the insurer's best estimate of outstanding claims liabilities. It captures the direct cost of claims (e.g., benefits to policyholders) and associated expenses such as claims handling costs.
• Change that relate to past service (Changes in fulfilment cash flows (FCF) relating to the liability for incurred claims (LIC)): This component reflects adjustments in the present value of future cash flows (fulfilment cash flows) tied to claims already incurred but not yet settled. Changes arise from updated assumptions, experience adjustments, or interest accretion on LIC.
• Net expense from reinsurance contracts held: This represents the net impact of reinsurance recoveries and premiums ceded to reinsurers on claims liabilities. It accounts for the reinsurer's share of claims incurred, offset by the reinsurance premiums paid, and any changes in the value of reinsurance assets or liabilities.
• Movement in other provision charges: This term refers to changes in the Group's liabilities related to insurance contracts not already included in the Insurance Service Result.
• Insurance revenue: Premiums written during the period, adjusted for changes in unearned premium reserves and interest earned on instalment premiums.

ALTERNATIVE PERFORMANCE MEASURES (APM's) (unaudited) (continued)

	2024	2023
	€000s	€000s
Calculation:
Incurred claims and other expenses	266,747	238,133
Changes that relate to past service – changes in FCF relating to the LIC	(72,928)	(103,990)
Net expense from reinsurance contracts held	51,453	64,666
Movement in other provision charges1	6,695	15,831
Total claims incurred and movement in other provision charges	251,967	214,640
Insurance revenue	441,005	401,026
Loss ratio	57.1 %	53.5 %

¹ESG initiative has been excluded as not insurance related

Undiscounted loss ratio

The undiscounted loss ratio is a measure of underwriting performance, as it calculates the ratio of claims incurred net of reinsurance to reinsurance revenue without discounting for the time value of money. Discounting has been determined in accordance with accounting policy 3 (E). This ratio provides a straightforward view of claim incurred relative to insurance revenue, offering a conservative measure that eliminates the assumptions involved in discounting liabilities and assets. Investors find this metric useful for evaluating short-term cash flow sufficiency and claims management. This APM is valuable when comparing different discounting practices and helps ensure transparency regarding claim liabilities.

Formula: Undiscounted Loss Ratio = Undiscounted total claims incurred and movement in other provisions / Insurance revenue x 100

Components:

• Undiscounted total claims incurred and movement in other provisions: See definition for Total Claims Incurred and movement in the other provisions above, without any adjustments for future liability discounting.
• Insurance revenue: See above.

ALTERNATIVE PERFORMANCE MEASURES (APM's) (unaudited) (continued)

	2024	2023
	€000s	€000s
Calculation:
Incurred claims and other expenses2	276,298	247,340
Changes that relate to past service – changes in FCF relating to the LIC2	(74,072)	(101,455)
Net expense from reinsurance contracts held2	51,031	62,359
Movement in other provision charges1	6,695	15,831
Total claims incurred and movement in other provision charges	259,952	224,075

¹ESG initiative has been excluded as not insurance related

2 These items cannot be reconciled to the Financial Statements and therefore we have shown below how the non-directly extractable figures are calculated:

The difference between the undiscounted loss ratio and loss ratio is the effect of discounting only. Discounting involves applying payment patterns to the estimates of future cashflows related to incurred claims and adjusted using the current discount rates to reflect the times value of money and the financial risks related to those cashflows to the extent not included in the estimates of cashflows. Discounting has been determined in accordance with accounting policy 3 (E) in the 2024 Annual Report.

	401,026
Undiscounted loss ratio 58.9 %	55.9 %

Expense ratio

The expense ratio represents the proportion of insurance revenue allocated to cover the Group's underwriting expenses, including both acquisition and administrative costs. It is calculated by dividing the sum of insurance acquisition expenses and non-attributable expenses by the insurance revenue. This ratio indicates the percentage of income generated from insurance operations that is utilised for acquiring new or renewing business and managing the Group's administrative functions. The expense ratio reflects the Group's efficiency in managing operational and acquisition-related costs relative to its insurance revenue. A lower ratio signifies better cost control and operational efficiency, which is key for profitability. This APM is widely adopted across the insurance industry. It helps stakeholders understand how effectively the Group manages its cost base, allowing for comparisons with other insurers.

Formula: Expense ratio = Amortisation of insurance acquisition cash flow and non-attributable expenses / Insurance revenue x 100

Components:

• Non-attributable expenses: Costs incurred in managing the business, excluding claims costs.
• Amortisation of insurance acquisition cash flow: Expenses associated with acquiring new policies, including commissions paid to intermediaries and marketing expenses.
• Insurance revenue: Premiums written during the period, adjusted for changes in unearned premium reserves and interest on Instalment premiums.

ALTERNATIVE PERFORMANCE MEASURES (APM's) (unaudited) (continued)

	2024	2023
	€000s	€000s
Calculation:
Amortisation of insurance acquisition cash flow	84,633	75,909
Non-attributable expenses	37,804	34,018
Total insurance acquisition and non-attributable expenses	122,437	109,927
Insurance revenue	441,005	401,026
Expense ratio	27.8 %	27.4 %

Combined operating ratio

The combined operating ratio (COR) is a comprehensive measure of underwriting performance, calculated as the sum of the loss ratio and the expense ratio. It assesses the profitability of core insurance operations before considering investment returns. COR provides an overall view of the Group's underwriting and operational performance. A COR below 100% indicates underwriting profitability, while a ratio above 100% indicates underwriting losses. It is highly reliable due to its broad industry use and comparability across companies. The COR is a key indicator for investors and stakeholders to assess the sustainability and profitability of the Group's insurance operations.

Formula: Combined operating ratio = Loss ratio + Expense ratio

Components:

• The definitions of the components of the loss ratio and expense ratio can be found above.

	2024	2023
	€000s	€000s
Calculation:
Loss ratio	57.1 %	53.5 %
Expense ratio	27.8 %	27.4 %
Combined operating ratio	84.9 %	80.9 %

Undiscounted combined operating ratio

The undiscounted combined operating ratio (UCOR) is the combined operating ratio calculated without discounting future claim liabilities. The UCOR eliminates the potential distortions of discounting, providing a more conservative view of the Group's performance. It is highly reliable in assessing short-term operational risks and provides a clearer picture of profitability. Investors who prioritise transparency around future liabilities find this metric particularly valuable for assessing the Group's financial health in the absence of discounting assumptions.

Formula: Undiscounted Combined operating ratio = Undiscounted loss ratio + Expense ratio

Components:

• The definitions of the components of the undiscounted loss ratio and expense ratio can be found above.

ALTERNATIVE PERFORMANCE MEASURES (APM's) (unaudited) (continued)

	2024	2023
	€000s	€000s
Calculation:
Undiscounted loss ratio	58.9 %	55.9 %
Expense ratio	27.8 %	27.4 %
Undiscounted combined operating ratio	86.7 %	83.3 %

Actual investment return ratio

Actual investment return ratio measures the profitability of the Company's investment portfolio, expressed as a percentage of the average invested assets over the reporting period. Investment performance is a key driver of profitability for insurance companies, especially given the duration of liabilities. This measure provides a clear understanding of how well the Company is managing its investment portfolio. Actual investment return ratio is useful for assessing the effectiveness of the Company's investment strategy.

Formula: Actual investment return ratio = Actual investment return / Average investment assets

Components:

• Investment return: Total income generated from investments, including interest, dividends, and capital gains.
• Average invested assets: The average value of assets allocated to investments over the reporting period.

	2024	2023
	€000s	€000s
Calculation:
Investment return recognised in Consolidated Income Statement	26,087	19,094
Investment return recognised in Statement of comprehensive income	19,031	41,392
Actual investment return	45,118	60,486
Average investment assets1	1,145,451	1,137,746
Actual investment return ratio	4.0 %	5.3 %
1

This item cannot be reconciled to the Financial Statements and therefore we have

shown below how the non-directly extractable figures are calculated:

The group keeps records of its investment asset values at the end of each day. If these values fluctuate daily, the sum of all daily values is computed over the course of the year. Once all daily values are summed, the total is divided by 365 to get the average investment assets. Calculating average investment assets on a daily basis provides a more precise and smooth reflection of the assets under management, particularly when asset values fluctuate frequently due to market movements or portfolio adjustments. This method ensures that daily variations are factored into the calculation of the actual investment return, giving a more accurate measure of performance over the year.

Net asset value per share (NAV per share)

NAV per share represents the Group's total net assets (equity) divided by the number of outstanding shares at the reporting date, excluding treasury shares. It indicates the intrinsic value of each share based on the Group's financial position. NAV per share is widely used in the insurance industry as a measure of shareholder value. It offers a reliable indication of the Group's equity on a per-share basis, which is crucial for assessing intrinsic value. NAV per share is an important metric for investors to compare the Group's market value to its book value.

Formula: Net asset value per share = Shareholders' funds - equity interests / Closing number of ordinary shares

ALTERNATIVE PERFORMANCE MEASURES (APM's) (unaudited) (continued)

Components:

• Shareholders' funds – equity interests: Total assets minus liabilities (equity).
• Closing number of ordinary shares: The number of ordinary shares held by shareholders at the reporting date, excluding treasury shares.

	2024	2023
	€000s	€000s
Calculation:
Shareholders' funds – equity interests	483,204	477,036
Number of shares	No.	No.
Closing number of ordinary shares (excluding Treasury)	35,897,184	35,856,967
	Cent	Cent
Net asset value per share	1,346	1,330

Return on Equity

Return on Equity (ROE) measures the Group's profitability relative to shareholders' equity, indicating how effectively the Group is utilising shareholder capital to generate profits. ROE is a highly reliable measure of management's effectiveness in using equity to generate returns. It is widely used in the industry to gauge profitability and investment attractiveness. ROE is important for investors who want to assess how efficiently the Group is using its capital to generate profits.

Formula: ROE = Result for the period / Average equity attributable to ordinary shareholders

Components:

• Result for the period: Profit or loss earned by the Group after taxes and other deductions.
• Average equity attributable to ordinary shareholders: The average equity held by shareholders over the reporting period.

	2024	2023
	€000s	€000s
Calculation:
Average equity attributable to ordinary shareholders1	480,120	465,521
Result for the period	67,205	69,541
Return on Equity	14 %	15 %

¹Average equity is calculated as the opening equity plus closing equity attributable to ordinary shareholders divided by two.

Underwriting result

The underwriting result reflects the profitability of the Group's core insurance operations, calculated as the difference between the Insurance Service Result and the total of Non-attributable Expenses and Movement in Other Insurance-Related Provisions. The underwriting result is a critical indicator of the Group's ability to price risks effectively and manage its core insurance operations profitably. This APM is vital for assessing the Group's performance in its primary insurance business, giving stakeholders a clear view of how profitable the Group is in its core operations.

ALTERNATIVE PERFORMANCE MEASURES (APM's) (unaudited) (continued)

Formula: Underwriting result = Insurance service result - Non-attributable expenses - Movement in other provision charges

Components:

• Insurance service result: This represents the profitability of the insurance contracts issued by the Group. It is the net outcome of insurance revenue minus incurred claims and insurance service expenses related to fulfilling those contracts. This result excludes the impact of investment income and reflects the financial performance of core underwriting and claims management activities.
• Non-attributable expenses: Non-attributable expenses refer to costs that cannot be directly linked to specific insurance activities or contracts. These expenses typically encompass general administrative or corporate costs that support the overall operation of the business but do not relate to the underwriting or servicing of individual policies.
• Movement in other provision charges: This term refers to changes in the Group's liabilities related to insurance contracts not already included in the Insurance Service Result.

	2024 €000s	2023 €000s
Calculation:
Insurance service result	111,100	126,308
Non-attributable expenses	(37,804)	(34,018)
Movement in other provision charges1	(6,695)	(15,831)
Underwriting result	66,601	76,459
1 ESG initiative has been excluded as not insurance related

Gross written premium

Gross Written Premium (GWP) refers to the total amount of premiums due from policyholders for insurance contracts written during a specific period, before any deductions for reinsurance. GWP includes all premiums related to insurance coverage, whether received upfront or to be received in the future. GWP is a reliable measure of the Group's revenue-generating capacity and growth potential in the insurance market. It reflects the demand for the Group's products and services. GWP remains a key metric used to assess the growth and scale of an insurer's business, providing insight into the demand for insurance products.

Formula: Gross written premium = Insurance revenue - Instalment premium + Movement in unearned premium

Components:

• Insurance revenue: See above.
• Instalment premium: When the policyholder opts to pay in instalments (e.g. monthly or quarterly), rather than as a lump-sum upfront annual payment, the Group charges interest on these payments to compensate for the delayed receipt of the full premium. The instalment premium is the interest earned by the insurer over the course of the payment period, and is included in Insurance revenue.
• Movement in unearned premium: This term refers to the change in the balance of unearned premium liabilities from one reporting period to the next. Where period covered is different to the financial period, there will be a balance in the unearned premium liability at the financial year end. Unearned premiums represent the portion of premiums that have been received but not yet recognised as revenue because the corresponding insurance coverage has not yet been provided. Under IFRS 17, these premiums are deferred and recognised as insurance revenue over time as the insurance coverage is delivered.

ALTERNATIVE PERFORMANCE MEASURES (APM's) (unaudited) (continued)

	2024	2023 €000s
	€000s
Calculation:
Insurance revenue	441,005	401,026
Less: Instalment premium1	(5,014)	(4,430)
Add: Movement in unearned premium1	24,228	16,997
Gross written premium	460,219	413,593*

¹These items cannot be reconciled to the Financial Statements and therefore we have shown below how the non-directly extractable figures are calculated:

• • Instalment premium: The interest earned as policyholders make instalment payments. Each instalment payment consists of both the gross written premium and an interest component, with the interest reflecting the time value of money for the insurer due to delayed receipt of the full premium and calculated by reference to a service charge. The interest earned is calculated by applying the service charge percentage to the gross written premium on policies paid by instalments.
• • Movement in unearned premium: This movement represents the difference between the opening and closing balance of the unearned premium liability.

*Gross written premium reported for 2023 of €413,593 included a Broker legacy scheme in run-off which has been terminated, with GWP of €4.5m in 2023. There was no GWP written in 2024. For direct year on year comparison this has been excluded from Managements Review report, resulting in GWP of €409,070.

Please refer to the FBD Holdings plc Annual Report for the year ended 31 December 2024 (pages 282 to 288) for the reconciliation of the above APMs to the most directly reconcilable line item, subtotal or total presented in the financial statements, separately identifying and explaining the material reconciling items.

FBD HOLDINGS PLC

FBD House Bluebell Dublin 12 www.fbd.ie