FBD Holdings plc 2006 Preliminary Results 7 th March 2007 A.

2 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 2006 Preliminary Results

3 FBD Holdings plc 2006 Preliminary Results

4 FBD Holdings plc……… Indigenous Irish company Primary Business Other Interests Excellent growth record Committed to Key Business Driver ………. Founded in 1970 ………. Stock Exchange, 1989 ………. Insurance Underwriting (Property/Casualty) ………. Leisure/Property Development ………. Financial Services ……… “TSR” 55% p.a., last 5 years. ………. Shareholders, customers, staff. ………. Maximising shareholder value Preliminary Results

5 Mission Statement “In our target markets, to be the leading customer focused insurance group, delivering long term sustainable value.” 2006 Preliminary Results

6 Operational Highlights Group Net assets per share grew by 13.9% to 1,424.76c Underwriting Strong new business volumes more than offset reduced premium rates. Policy count at year end up 11.8% on December Branch network enhanced. Dublin personal lines unit grown. Continued growth in Dublin market. Increased investment in infrastructure and people - VOIP/Business Support Centre – (Mullingar) - Workflow systems enhancing efficiency - New off-site IT availability for resilience/flexibility 2006 Preliminary Results

7 Non-Underwriting – Leisure/Property Development La Cala €201m land sale agreed, February €100m (Tranche 1) initial consideration, received, June €21m (Tranche 1 balance) payable on 30 th June €80m (Tranche 2) payable when Regional planning approval received ……anticipated early €55m profit – after tax (Tranche 1) recognised in Sunset Visitor numbers up – improved trading. Tower Visitor numbers up – improved trading. Operational Highlights (contd) 2006 Preliminary Results

8 Non Underwriting: Financial Services FBD Life Improved trading FBD Brokers Maintained performance Capital Fund Excellent returns Operational Highlights (contd) 2006 Preliminary Results ………. Growth opportunities availed of ………. Premium reductions. ……….Benefiting from strong equity markets.

9 Corporate Farmer Business Developments plc share placing m shares (11.6% of issued capital). - Shareholding moves from 34% to 24.4%. - FBD buys 3.8m shares for €129m….. Shares cancelled. - Free float moves to 67%. La Cala Dividend. - €1.60 Special Dividend in August in relation to Tranche 1 land Operational Highlights (contd) 2006 Preliminary Results

% €000s Gross written premiums407,256389, % Net earned premiums345,959332, % Underwriting result76,54290, % Operating profit158,515162, % Profit on sale of land at La Cala81,774-- Profit before taxation296,780185, % Operational Highlights (contd) 2006 Preliminary Results

Cent Operating earnings per share % Dividend per share % Special dividend – La Cala land sale Net asset value per share1, , % % Return on equity50.61%36.53% Operational Highlights (contd) 2006 Preliminary Results

12 Income Statement €000s % Gross written premiums407,256389, % Net earned premiums345,959332, % Net claims incurred(224,712)(202,475)+11.0% Net operating expenses(44,705)(39,446)+13.3% Underwriting Result76,54290, % Loss Ratio65.0%60.9% Net Expense Ratio12.9%11.9% Combined Ratio77.9%72.8% 2006 Preliminary Results

€000s 2005 €000s % Underwriting Result76,54290, % Longer term investment return48,05444, % Non underwriting operating income 33,91927, % Operating profit158,515162, % Operating profit by activity: Insurance underwriting124,596134,885 Non-underwriting - Property/leisure10,09213,644 - Financial services4,2793,302 - Capital fund19,54833,91910,79327, ,515162, Preliminary Results Income Statement (contd)

€000s Operating profit158,515162,624 Profit on sale of land at La Cala81,774- Short term fluctuation in investment return61,35025,956 Finance costs(4,859)(3,425) Profit before tax296,780185,155 Income tax expense(49,948)(23,701) Profit for the year246,832161, Preliminary Results Income Statement (contd)

15 Balance Sheet - Assets 31/12/06 €000s 31/12/05 €000s Property & Equipment Hotels/golf180,369168,258 Property – own use33,19528,665 Fixtures & Fittings16,815230,37913,302210,225 Investments Property81,18148,856 Financial1,099,3091,061,846 Reinsurers’ share of technical provisions 72,55366,034 Other receivables/DAC’s99,31973,058 Other Assets Development land32,60836,163 Work-in-Progress33,82526,333 Cash37,423103,85641,897104,393 Total Assets1,686,5971,564, Preliminary Results

16 Balance Sheet - Liabilities Equity 31/12/06 €000s 31/12/05 €000s Share Capital21,27723,557 Reserves476,242452,570 Shareholders’ funds – equity interests497,519476,127 Preference Shareholders2,923 Minority Interests6,4766,423 Total equity506,918485,473 Liabilities Technical provisions - Unearned premiums197,507188,953 - Claims734,439931,946699,397888,350 Deferred tax33,22733,873 Creditors - Loans112,35099,831 - Other102,156214,50656,885156,716 Total Liabilities1,686,5971,564, Preliminary Results

17 Reconciliation of Movement in Shareholders’ Funds 31/12/06 €000s 30/6/05 €000s Balance at 1 st January485,473425,709 Profit for the period246,83293,920 Buyback of own shares(129,213)(81,238) Dividends paid(77,672)(10,298) Available-for-sale investments(26,342)861 Revaluation of owner occupied property6,038- Purchase of minority interests-(9,956) Other1,8022,152 Balance at 31 st December506,918421, Preliminary Results

18 Cash Flow Statement 2006 €000s 2005 €000s Net Cash from operating activities180,509141,626 Used in investing activities(3,136)(54,411) Used in financing activities(181,574)(96,744) Net decrease in cash and cash equivalents(4,201)(9,529) Cash and cash equivalents at the beginning of the period41,89751,362 Effect of foreign exchange rate changes(273)64 Cash and cash equivalents at the end of the period37,42341, Preliminary Results

19 Return on Equity Underwriting50.75%43.78%53.08%58.44% Non underwriting13.68%8.63%11.63%39.75% Total35.09%31.61%36.53%50.61% 2006 Preliminary Results

20 Gross Claims Run-Off Estimate of cumulative claims: Prior Years €m 2001 €m 2002 €m 2003 €m 2004 €m 2005 €m 2006 €m Outstanding Claims 2006 €m At end of underwriting year One year later Two years later Three years later Four years later Five years later Estimate of cumulative claims 1, ,597 Cumulative payments (1,101)(129)(134)(112)(139)(124) (1,863) Claims outstanding Preliminary Results

21 Market Share Gross Written Premium – (2006, provisional) Total Market €3,840m: €3,841m: €3,957m : €4,239m: €3,955m FBD Premium €407m: €389m: €351m: €369m: €326m 2006 Preliminary Results

22 Outlook Group Confident that successful development will continue. Underwriting Intense price competition and discounting to continue…. eroding margins. Further ongoing claims costs savings from existing and new “reform” initiatives required to delay convergence of Irish & European Combined Ratios. FBD – targeting strong new business volumes. – focusing on growing efficiently, sustainability and profitably. – investing further in people and business infrastructure to achieve our growth plans. – Reserving policy………under ongoing review Preliminary Results

23 Outlook (contd) Non-Underwriting Leisure/Property Development Businesses on course to deliver satisfactory performances. Disposal of development land at La Cala confirms ongoing commercial assessment of all businesses. Financial Services Opportunities for further growth in Life/Investment product sales to continue. Falling premium levels will continue to impact insurance broking revenue growth. Capital Fund Positive outlook for Stock Markets Preliminary Results

24 OUTLOOK… Contd. Capital Capital efficiency is fundamental principle applied in all businesses. Proactive approach to capital management confirmed; €265m repatriated since March Dividend payout to continue to increase. Utilisation of capital to maximum benefit of shareholders determined in context of development strategies which Group pursues. Ongoing attention to use of capital. ……. Meanwhile, prudent investment Preliminary Results