FBD : Press Release (2026 half year results statement)

About this update from Fbd Holdings Plc

‌FBD HOLDINGS PLC Half Yearly Report 07 August 2026 For the Six Months ended 30 June 2026 FBD Holdings PLC Half Yearly Report 2026 Overview Interim Financial Statements Other 2 Information HALF YEAR 2026 AT A GLANCE Profit before tax Insurance revenue Special dividend approved €43m €253m 75c (H1 2025: €17m) (H1 2025: €235m) (H1 2025: 75c) Gross written Combined SCR 2 (Post premium 1 operating ratio 1 dividend) +4% 85.3% 203% (H1 2025: +10%) (H1 2025: 94.2%) (H1 2025: 202%) COMMENTING ON THESE RESULTS TOMÁS Ó MIDHEACH, GROUP CHIEF EXECUTIVE, SAID: "We are pleased to announce a strong performance for FBD for the first six months of 2026. Our customer focused strategy continues to deliver, with the strong momentum built over recent years carrying through into 2026. This follows a period in 2025 when severe weather, particularly Storm Éowyn, had a significant impact on many of our customers. Growth continues across the business, with more customers choosing FBD, doing more with us and staying for longer. Central to that success are the relationships we have built with customers over many years. As our strategy has evolved, we have continued to invest in data and digital capabilities that help us better understand and serve our customers, while remaining true to the local personal service that has always differentiated FBD. We welcome the publication by the Department of Finance of the Motor Insurance Transparency Code, a priority action under the Action Plan for Insurance Reform 2025-2029. FBD will fully implement this Code. We continue to operate in an uncertain external environment, with geopolitical tensions and market volatility creating challenges for businesses and investors alike. Despite this backdrop, our investment return through the Income Statement continues to grow. Maintaining a strong capital position while delivering sustainable dividends is one of our key goals. Our Solvency Capital ratio remains in excess of our target risk appetite and reflects the financial strength and stability of our business. We are pleased to confirm our Board have approved a special dividend of 75 cent per ordinary share. We remain committed to moving to our target range over time. Looking ahead to the second half of 2026, we remain focused on maintaining our momentum. FBD continues to be profitable and growing, we remain confident that our relationship-driven approach, supported by a digitally enabled and data-enriched organisation, will continue to deliver long-term value for our customers and all of our stakeholders." 1 Please see the Alternative Performance Measures on pages 56 to 63 for definition of Gross written premium and Combined operating ratio 2 SCR: Solvency Capital Ratio KEY HIGHLIGHTS Profit before tax of €43m. Special dividend approved of 75 cent per ordinary share. Gross written premium (GWP) increase of 4% to €258m. Insurance revenue increase of 8% to €253m. Supported by customer focused strategy and consistently strong retention levels. Return on Equity (ROE) of 16%. Combined Operating Ratio (COR) of 85.3% demonstrating strong underwriting profitability, supported by favourable weather experience and prior year reserve development. Total investment portfolio return of 1.4% (€16.3m) comprising, 1.3% (€15.7m) through the Income Statement and 0.1% (€0.6m) through Other Comprehensive Income (OCI). Robust capital position maintained, with Solvency Capital Ratio (SCR) of 203%, after allowing for the approved special dividend. FBD named CSR/Community/Green Loyalty Programme of the Year for third consecutive year at the Irish Loyalty & CX Awards, recognising our strong community impact. Maintained Guidance: Combined Operating Ratio of low 90s achievable for full year 2026. A presentation will be available on our Group website https://www.fbdgroup.com today. Enquiries Telephone FBD 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 FBD Group's (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 forward-looking 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 PICTURED: DINGLE CRYSTAL, FBD BUSINESS INSURANCE CUSTOMER Part of FBD's Support Local Business Campaign FINANCIAL SUMMARY & OPERATING PERFORMANCE Half Year Half Year FINANCIAL SUMMARY ended ended 30 Jun 2026 30 Jun 2025 €000 €000 Gross written premium 1 258,418 248,901 Insurance revenue 253,050 235,093 Underwriting result 1 37,137 13,748 Investment return 15,668 13,142 Profit before taxation 43,467 17,121 Loss ratio 1 57.9 % 66.6 % Expense ratio 1 27.4 % 27.6 % Combined operating ratio 1 85.3 % 94.2 % Undiscounted Combined operating ratio 1 88.0 % 96.7 % Cent Cent Basic earnings per share 106 41 Net asset value per share 1 1,335 1,308 1 A reconciliation between IFRS and non-IFRS measures is given in the Alternative Performance Measures (APMs) on pages 56 - 63 . Insurance Revenue Insurance revenue is 7.6% higher than 2025 at €253.1m (H1 2025: €235.1m). Gross written premium is the largest part of insurance revenue and is 3.8% higher at €258.4m (H1 2025: €248.9m) with growth across Farmer, Retail and direct Business sectors. Farmer GWP is €9.0m higher than the comparable prior year period. Both Retail and direct Business are performing well in a competitive environment. We continue to support our customers and their increased cover requirements, which is evident from our consistently strong retention levels. Overall average premiums increased by 3.4% compared to the same period last year, comprising a 2.5% increase relating to increased liability and property coverage. Private motor average premium increased by 1.8%, reflecting inflationary pressures. Farm and Home average premiums increased by 7.0% and 5.0%, respectively, reflecting indexation applied to property sums insured and increased coverage requirements. Insurance Service Expenses Insurance service expenses (ISE) decreased by €68.4m to €188.6m (H1 2025: €257.0m). The table below splits the ISE into gross incurred claims, changes that relate to past service and insurance acquisition expenses. The gross incurred claims decreased by €81.8m mainly reflecting improved weather experience in 2026 compared to H1 2025, offset by higher frequency and severity of large claims year-to-date in 2026. Changes that relate to past service reduced compared to prior year, reflecting lower favourable prior year reserve movements compared to H1 2025, gross of reinsurance, and IFRS 17 specific movements in the Risk Adjustment and Discounting. Insurance acquisition expenses of €48.8m form part of the ISE and are referenced below under Expenses. Gross incurred claims Changes that relate to past service Insurance acquisition expenses (147,745) 7,991 (48,800) (229,517) 17,932 (45,403) Total Insurance service expenses (188,554) (256,988) Insurance Service Expenses Half Year ended 30 June 2026 Half Year ended 30 June 2025 €000 €000 Claims Trends Motor Accidental Damage claim severity increased during the first half of 2026, with a higher incidence of vehicle write-offs, driven by the growing prevalence of advanced vehicle technologies and increasingly complex repair methodologies. In addition, the first half of 2026 saw a higher proportion of injury claim settlements resolved at Circuit Court level. We have also seen a reduction in pre-litigation costs. Together, these factors are contributing to signs of stabilisation in average injury settlement costs compared with FY 2025. Large injury claims, defined as a value greater than €250,000, notified to date in 2026 are higher than the average over the past 10 years. Weather Net of reinsurance, weather experience to date in 2026 was more favourable compared with the previous year, which included the significant weather events of January 2025 with a net cost to FBD of €30.8m. Expenses The Group's expense ratio is 27.4% (H1 2025: 27.6%). Insurance acquisition expenses and non-attributable expenses are combined to calculate the total expense cost of €69.5m (H1 2025: €65.0m). The increase is attributable to inflationary impacts on the employee and technology cost base, as well as higher depreciation charges in the period driven by ongoing investment in FBD's digital capabilities. Reinsurance The reinsurance programme for 2026 was successfully placed, with a reduction in Casualty reinsurance rates and a minor rate increase applied to Property reinsurance. There was a small increase in retention at the lower end of the Property Catastrophe programme. The net result from reinsurance contracts held was an expense of €3.0m in 2026, compared with income of €58.2m in H1 2025. The prior year result was driven by significant reinsurance recoveries arising from the January 2025 weather events. There has been a marginal increase in reinsurance expense compared to H1 2025 reflecting the changes in the programme for 2026 as outlined above. Combined Operating Ratio (COR) The Group generated an underwriting profit of €37.1m (H1 2025: €13.7m) which translates to a Combined Operating Ratio (COR) of 85.3% (H1 2025: 94.2%). The undiscounted Combined Operating Ratio (COR) was 88.0% (H1 2025: 96.7%). The improvement compared to prior year reflects improved weather experience, strong underwriting profits and favourable prior year reserve development. Other Provision Charges Other provision charges of €3.7m included in the Income Statement (H1 2025: €3.0m), is made up of Motor Insurers' Bureau of Ireland (MIBI) levy, net of small reductions in previous provisions. Investment Return FBD's total investment return for 2026 is 1.4% (H1 2025: 1.9%). The investment return recognised in the Consolidated Income Statement is 1.3% (H1 2025: 1.2%) and in the Consolidated Statement of Other Comprehensive Income is 0.1% (H1 2025: 0.7%). The following table compares the investment income recognised in the Income Statement for Half Year ended 30 June 2026 to Half Year ended 30 June 2025: Half Year ended 30 Half Year ended 30 Movement June 2026 June 2025 Income Statement return €000s €000s €000s Corporate Bond Income 1 7,944 6,360 1,584 Government Bond Income 1 2,081 1,390 691 Bond realised losses 2 (261) (841) 580 Cash 3 1,244 1,666 (422) Risk Assets 4 5,412 5,264 148 Investment Property (40) 23 (63) Expenses (712) (720) 8 Total 15,668 13,142 2,526 1 Bond income increased in 2026 due to higher allocations and maturities being re-invested at higher rates. 2 Bond realised losses in both 2026 and 2025 due to book yield enhancement trading. 3 Return on Cash lower due to lower interest rates and allocations than prior year 4 Equities and private markets funds major driver of Risk Assets returns. The income recognised in the Income Statement from the bond portfolios increased in 2026 as additional investments were made to capitalise on the increase in market yields and maturities continue to be reinvested at higher rates. Some realised losses were incurred on bonds sold to enhance longer-term yield with the additional income expected to outweigh the realised losses over the full year. Positive income was recognised in the OCI as unrealised gains on recent purchases and the pull-to-par effect on bonds with unrealised losses outweighed the impact of higher risk-free rates. Cash returns have moderated due to lower allocations and the European Central Bank (ECB) interest rate cuts last year, although some of this may be offset over the full year if the ECB proceeds with further rate hikes. Risk assets contributed €5.4m to the overall income statement return with equities and private markets funds continuing to generate strong returns. Financial Services and Other Group activities The Group's financial services operation recorded revenue from contracts with customers (commission income) of €2.0m (H1 2025: €1.2m). Expenses relating to financial services and other group activities of €5.3m (H1 2025: €4.5m) include financial services staff, professional fees, listing fees and director remuneration. STATEMENT OF FINANCIAL POSITION IFRS Capital position Ordinary shareholders' equity at 30 June 2026 amounted to €479.9m (31 December 2025: €474.4m). The increase in shareholders' equity is driven by the following: Profit after tax for the period of €38.0m; OCI gains after tax for the period of €5.0m, made up of: Mark to market gains on the Bond portfolio of €0.6m; Insurance finance income for insurance and reinsurance contracts issued of €3.6m; An increase in the Retirement benefit surplus of €1.5m; Net of: Income tax charge of €0.7m; Share-based payment reserve increase of €2.8m; Offset by: Payment of the ordinary and preference dividends related to the 2025 financial performance totalling €36.3m; Repurchase of own shares of €4.0m. Net asset value per ordinary share is 1,335 cent, compared to 1,320 cent per share at 31 December 2025. Investment Allocation FBD has a conservative investment strategy across its portfolio, of circa €1.2 billion of assets, with its insurance contract liabilities backed with fixed interest assets of similar currency and duration. Cash allocations decreased due to dividends and reallocations to the bond portfolios. The average credit quality of the bond portfolio has remained at A while the allocation to BBB rated corporate bonds remains stable at 38%. The duration of the corporate bond portfolio decreased to 3.1 years (FY 2025: 3.4 years) and the government bond portfolio duration increased to 4.6 years (FY 2025: 3.2 years) as we continued implementation of the Strategic Asset Allocation (SAA). The allocation of the Group's investment assets 1 is as follows: €m 30 June 2026 % 31 €m December 2025 % Corporate bonds 672 57 % 644 55 % Government bonds 286 24 % 258 22 % Cash 2 96 8 % 149 13 % Risk assets 3 111 10 % 106 9 % Investment property 11 1 % 11 1 % 1,176 100% 1,168 100% 1 Investment assets include accrued interest on Corporate and Government bonds and Cash, and therefore cannot be reconciled to the Condensed Consolidated Statement of Financial Position. 2 Cash excludes operational bank accounts for the purpose of investment allocation. 3 Risk assets primarily comprise equities, growth fixed income and private market investments in collective investment schemes. Solvency II The SCR at 30 June 2026 is 203% which has increased from 201% at 31 December 2025. The SCR allows for the approved special dividend and remains well in excess of our target risk appetite range of 150% - 170%. Capital Return The Board has approved a special dividend of 75 cent per ordinary share returning a portion of surplus capital to shareholders. Focus is on dividend sustainability while maintaining a strong capital position with a firm intention to move closer to target capital levels over time. The special dividend approved by the Board on 6 August 2026 will be paid on 16 October 2026 to the holders of shares on the register on 11 September 2026. The dividend is subject to 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. The Company successfully completed a €4 million repurchase of shares in the first half of 2026, the purpose of which was to offset the dilution from the vesting of awards under the employee share scheme. Regulatory and Policy Environment The regulatory and policy environment continued to evolve during the first half of 2026, with a number of significant legislative and market reforms progressing across the insurance sector. FBD remains actively engaged with the Government, the Central Bank of Ireland and industry representative bodies to support implementation. The Government's 2025-2029 Action Plan for Insurance Reform continued to advance measures aimed at improving affordability, transparency and competition, while supporting a more resilient insurance market. The programme builds on earlier reforms and reinforces the Government's commitment to delivering a fairer and more accessible insurance market. FBD has continued its preparations for the implementation of the voluntary Motor Insurance Transparency Code, which is designed to provide customers with clearer explanations of premium changes and rating factors, supporting greater transparency and informed decision-making. As of March 2026, the Consumer Protection Code 2025 is now in effect, following a 12-month implementation period. This Code delivers a modernised regulatory framework with updated protections reflecting how financial services are delivered in a digital world. It introduces strengthened consumer safeguards, new standards for business, and clearer obligations on firms to prioritise customers interests across all interactions. The review of the Solvency II Directive was published in February 2026, with an implementation date of January 2027. The review entails comprehensive changes in many areas including calculation of capital requirement, governance and reporting. We currently expect the key changes affecting the calculation of FBD's Solvency Capital Requirement to be the revised risk margin calculation, the inclusion of flood risk charge, changes to prescribed interest rate risk shocks, and the change to the Equity Symmetric Adjustment (ESA). 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 2025 and continue to apply to the six-month period ended 30 June 2026. 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. 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 reinsurers' outstanding balances is in place. All of the Group's reinsurers have a credit rating of A- or better. The external environment remains dynamic. Existing controls, governance arrangements and monitoring processes in FBD are considered to be appropriate and effective. The Irish economy and global investment markets remain vulnerable to multiple geopolitical risks. An escalation in these risks may impact the Group in the form of market, economic and inflation risk. High levels of inflation have a resultant impact on reserving for future claims and pricing of written business. The Group's Actuarial team is continually monitoring the rate of inflation for the purposes of reserving and pricing. The Group's Claims team are closely monitoring the effects of inflation on all claims. OUTLOOK The Irish economy has remained resilient through the first half of 2026, supported by continued growth in domestic activity and strong employment levels. A number of external headwinds, including higher energy prices, inflationary pressures and ongoing geopolitical uncertainty may present challenges in the second half of the year and into 2027 for both our business and for our customers. The Income Statement return from our bond portfolios, which comprise the majority of the investment portfolio, is projected to continue to increase in the years ahead due to the impact of higher reinvestment rates as bonds mature. At FBD, our customer-focused strategy continues to create sustainable value for all stakeholders. We remain committed to becoming a digitally enabled, data enriched organisation that delivers exceptional experiences for both customers and employees. By fostering strong and enduring customer relationships, we are seeing tangible results, with customers choosing to do more business with us than ever before. Over the coming months, we will shape the next phase of our customer-focused strategy, building on our progress to date and ensuring our customers remain at the core of our business while delivering for all stakeholders. The next phase of our strategy will also include a consideration of the level of our sustainable dividend into the future. FBD continues to demonstrate strength and resilience, supported by our robust franchise and strong capital position. We are committed to operational excellence, striving to be better tomorrow than we are today and remain confident in our ability to continue to deliver long-term value to both our customers and shareholders. We maintain our guidance: Combined Operating Ratio 1 of low 90s achievable for 2026. 1 Please see the Alternative Performance Measures on page 56 to 63 for the definition of Combined Operating Ratio ‌CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PICTURED: TABLE 45, FBD BUSINESS INSURANCE CUSTOMER Part of FBD's Support Local Business Campaign Condensed Consolidated Income Statement (unaudited) Note Half year ended 30/06/26 Half year ended 30/06/25 Year ended 31/12/25 €000s €000s €000s For the half year ended 30 June 2026 Insurance revenue 5(a) 253,050 235,093 486,751 Insurance service expenses 5(c) (188,554) (256,988) (428,325) Reinsurance expense (17,056) (16,429) (33,463) Change in amounts recoverable from reinsurers for incurred claims 14,012 74,639 67,684 Net (expense) / income from reinsurance contracts held 5(a) (3,044) 58,210 34,221 Insurance service result 5(a) 61,452 36,315 92,647 Total investment return 6 15,668 13,142 24,659 Finance expense from insurance contracts issued 4 (5,655) (5,251) (7,659) Finance income from reinsurance contracts held 4 846 186 775 Net insurance finance expenses (4,809) (5,065) (6,884) Net insurance and investment result 72,311 44,392 110,422 Other finance costs 5(a) (1,272) (1,281) (2,567) Non-attributable expenses 5(c) (20,662) (19,587) (40,621) Other provision charges 13 (3,653) (2,980) (7,173) Revenue from contracts with customers 5(a) 2,040 1,175 2,600 Financial services income and expenses 5(a) (5,297) (4,598) (8,502) Revaluation of property, plant and equipment 5(a) - - (3) Profit before taxation 43,467 17,121 54,156 Income taxation charge 7 (5,435) (2,306) (6,993) Profit for the period 38,032 14,815 47,163 Attributable to: Equity holders of the parent 38,032 14,815 47,163 Note Half year ended Half year ended Year ended 30/06/26 30/06/25 31/12/25 Earnings per share Cent Cent Cent Basic 8 106 41 130 Diluted 1 8 103 40 127 1 Diluted earnings per share reflects the potential vesting of share-based payments. Condensed Consolidated Statement of Comprehensive Income (unaudited) Half year Half year Year Note ended ended ended 30/06/26 30/06/25 31/12/25 €000s €000s €000s For the half year ended 30 June 2026 Profit for the period 38,032 14,815 47,163 Items that will or may be reclassified to profit or loss in subsequent periods: Movement on investments in debt securities measured at FVOCI 6 401 7,616 7,030 Movement transferred to the Consolidated Income Statement on disposal during the period 6 261 799 820 Finance income / (expense) from insurance contracts issued 4 4,320 (1,346) (2,832) Finance (expense) / income from reinsurance contracts held 4 (729) 538 391 Income tax relating to these items (531) (951) (677) Items that will not be reclassified to profit or loss: Re-measurements of post-employment benefit obligations, before tax 1,517 1,471 (88) Revaluation of owner-occupied property - - 56 Income tax relating to these items (190) (184) (8) Other comprehensive income after taxation 5,049 7,943 4,692 Total comprehensive income for the period 43,081 22,758 51,855 Attributable to: Equity holders of the parent 43,081 22,758 51,855 Cash and cash equivalents Equity and debt instruments at fair value through profit or loss Debt instruments at fair value through other comprehensive income 9 9 9 112,513 111,145 949,301 167,251 118,266 864,828 170,042 105,973 893,192 Investment assets 1,060,446 983,094 999,165 Current taxation asset 321 3,401 1,802 Other receivables 30,823 27,790 22,465 Loans 9 328 372 439 Reinsurance contract assets 12 90,611 131,345 82,705 Retirement benefit surplus 15 7,988 7,864 6,471 Intangible assets 44,833 39,059 42,781 Policy administration system 1 - 7,158 3,567 Investment property 9 10,800 11,300 10,800 Right of use assets 2,646 2,871 3,179 Property, plant and equipment 25,089 23,136 26,352 Total assets 1,386,398 1,404,641 1,369,768 Assets Note As at 30/ 06/26 As at 30/ 06/25 As at 31/ 12/25 €000s €000s €000s 1 Policy administration system fully amortised as at 30/06/2026. Liabilities Other payables 41,820 44,599 39,104 Other provisions 13 7,402 12,208 7,349 Reinsurance contract liabilities 12 62 591 - Insurance contract liabilities 12 800,631 815,818 792,586 Subordinated debt 9 49,867 49,808 49,839 Lease liabilities 2,906 3,139 3,447 Deferred taxation liabilities 901 1,695 163 Total liabilities 903,589 927,858 892,488 Equity Called up share capital presented as equity 10 21,963 21,963 21,963 Capital reserves 12,335 30,931 13,283 Retained earnings 448,856 426,069 446,101 Other reserves 11 (3,268) (5,103) (6,990) Equity attributable to ordinary shareholders 479,886 473,860 474,357 Preference share capital 2,923 2,923 2,923 Total equity 482,809 476,783 477,280 Total liabilities and equity 1,386,398 1,404,641 1,369,768 Liabilities and equity Note As at 30/ 06/26 As at 30/ 06/25 As at 31/ 12/25 €000s €000s €000s Half year Half year Year ended ended ended 30/06/26 30/06/25 31/12/25 €000s €000s €000s For the half year ended 30 June 2026 Cash flows from operating activities Profit before taxation 43,467 17,121 54,156 Adjustments for: Movement on investments classified as fair value (5,106) (4,600) (7,442) Interest and dividend income (10,618) (9,240) (18,903) Depreciation/amortisation of property, plant and equipment, intangible assets and policy administration system 8,335 7,849 15,903 Depreciation on right of use assets 390 333 682 Impairment of intangible assets 341 - - Fair value movement on investment property - - 500 Revaluation of property, plant and equipment - - 3 Other non-cash adjustments 3,489 2,437 5,094 Operating cash flows before movement in working capital 40,298 13,900 49,993 Movement on insurance and reinsurance contract liabilities/ assets 3,790 (8,500) 14,685 Movement on other provisions 53 (2,192) (7,049) Movement on other receivables (6,782) (7,607) (2,852) Movement on other payables 2,521 8,124 2,059 Cash generated from operations 39,880 3,725 56,836 Interest and dividend income received 10,630 8,408 20,103 Income taxes paid (3,945) (7,136) (11,220) Net cash generated from operating activities 46,565 4,997 65,719 Cash flows from investing activities Purchase of investments classified as fair value through profit or loss (3,497) (20,009) (24,249) Sale of investments classified as fair value through profit or loss 3,725 39,762 59,003 Purchase of investments classified as FVOCI (171,154) (111,884) (189,912) Sale of investments classified as FVOCI 115,412 146,774 196,065 Purchase of property, plant and equipment (512) (1,109) (5,523) Purchase of intangible assets (6,051) (5,415) (12,349) Net cash (used in) / generated from investing activities (62,077) 48,119 23,035 Cash flows from financing activities Ordinary and preference dividends paid (36,326) (36,505) (63,675) Purchase of own shares (4,002) - (4,009) Interest payment on subordinated debt (1,250) (1,250) (2,500) Principal elements of lease payments (426) (406) (831) Net cash used in financing activities (42,004) (38,161) (71,015) Net (decrease) / increase in cash and cash equivalents (57,516) 14,955 17,739 Cash and cash equivalents at the beginning of the period 170,042 152,320 152,320 Effect of exchange rate changes on cash and cash equivalents (13) (24) (17) Cash and cash equivalents at the end of the period 112,513 167,251 170,042 FBD Holdings PLC Half Yearly Report 2026 Overview Interim Financial Statements Other 17 Information Condensed Consolidated Interim Financial Statements Condensed Consolidated Statement of Changes in Equity (unaudited) For the half year ended 30 June 2026 Called up share capital presented as equity €000s Capital reserve €000s Retained earnings €000s Other reserves €000s Attributable to ordinary shareholders €000s Preference share capital €000s Total equity €000s Balance at 1 January 2026 21,963 13,283 446,101 (6,990) 474,357 2,923 477,280 Profit after taxation - - 38,032 - 38,032 - 38,032 Other comprehensive income for the period - - 1,327 3,722 5,049 - 5,049 Total comprehensive income for the period - - 39,359 3,722 43,081 - 43,081 Dividends paid on ordinary and preference shares - - (36,326) - (36,326) - (36,326) Purchase of own shares - - (4,002) - (4,002) - (4,002) Issue of shares awards from treasury shares 1 - (3,724) 3,724 - - - - Recognition of share-based payments - 2,776 - - 2,776 - 2,776 Balance at 30 June 2026 21,963 12,335 448,856 (3,268) 479,886 2,923 482,809 Balance at 1 January 2025 21,768 27,932 445,263 (11,759) 483,204 2,923 486,127 Profit after taxation - - 14,815 - 14,815 - 14,815 Other comprehensive income for the period - - 1,287 6,656 7,943 - 7,943 Total comprehensive income for the period - - 16,102 6,656 22,758 - 22,758 Dividends paid on ordinary and preference shares - - (36,505) - (36,505) - (36,505) Unclaimed dividends write back - - 1,912 - 1,912 - 1,912 Issue of ordinary shares 2 195 508 (703) - - - - Recognition of share-based payments - 2,491 - - 2,491 - 2,491 Balance at 30 June 2025 21,963 30,931 426,069 (5,103) 473,860 2,923 476,783 1 In 2026, a total of 238,807 ordinary shares were issued at a nominal value of €0.60 each for 2023 award from Treasury shares. There was no adjustment to ordinary share capital. The movement on the capital reserves of €3,724,000 relates to share-based payments reserve movement to retained earnings. 2 Issue of ordinary shares relates to new ordinary shares allotted to employees of FBD Holdings plc as part of the performance share awards scheme in 2021 and 2022. In 2025, a total of 325,120 ordinary shares were issued at a nominal value of €0.60 each for 2022 award. The adjustment to ordinary share capital was €195,000. The movement on the capital reserves of €508,000 relates to the share premium reserve movement of €3,999,000 net of share-based payments reserve movement of €3,491,000. The adjustment to retained earnings was €703,000. Notes to the Condensed Consolidated Interim Financial Statements (unaudited) For the half year ended 30 June 2026 Note 1 Statutory information The half yearly financial information is considered non-statutory financial statements for the purposes of the Companies Act 2014 and in compliance with section 340(4) of that Act we state that: the financial information for the half year to 30 June 2026 does not constitute the statutory financial statements of the Company; the statutory financial statements for the financial year ended 31 December 2025 have been annexed to the annual return and delivered to the Registrar; the statutory auditor of the Company has issued a report under section 391 Companies Act 2014 in respect of the statutory financial statements for year ended 31 December 2025; and the matters referred to in the statutory auditor's report were unqualified, and did not include a reference to any matters to which the statutory auditor drew attention by way of emphasis without qualifying the report. Note 2 Going concern The Directors have, at the time of approving the interim financial statements, a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future being a period of not less than 12 months from the approval date of this report. In making this assessment the Directors considered up to date solvency, liquidity and profitability projections for the Group. The basis of this assessment was the latest quarterly forecast for 2026 and projections for 2027 which reflect the latest assumptions used by the Group. The economic environment may impact on premiums including exposures, new business and retention levels. Expense assumptions can change depending on the level of premiums as discretionary spend and resources are adjusted and inflationary pressures are taken into account. A number of scenario projections were run as part of the Own Risk Solvency Assessment (ORSA) process, including a number of more extreme stress events, and in all scenarios the Group's capital ratio remained in excess of the Solvency Capital Requirement and in compliance with liquidity policies. The Directors considered the liquidity requirements of the business to ensure it is projected to have cash resources available to pay claims and other expenditures as they fall due. The Group is expected to have adequate cash resources available to support business requirements. In addition, the Group has a highly liquid investment portfolio with over 75% of the portfolio invested in investment grade corporate and government bonds with an average credit rating of A. On the basis of the projections for the Group, the Directors are satisfied that there are no material uncertainties which cast significant doubt on the ability of the Group or Company to continue as a going concern over the period of assessment being not less than 12 months from the approval date of this report. Therefore, the Directors continue to adopt the going concern basis of accounting in preparing the financial statements. Note 3 Summary of material accounting policies Basis of preparation The annual financial statements of FBD Holdings plc are prepared in accordance with International Financial Reporting Standards ("IFRSs") as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with IAS 34 'Interim Financial Reporting', as adopted by the European Union. Note 3 Summary of material accounting policies (continued) Consistency of accounting policies FBD Holdings Plc has applied the same accounting policies and methods of computation in its interim consolidated financial statements as in its 2025 annual financial statements, except for the following amendments which apply for the first time in 2026. The Group has considered the following new standards, amendments, and interpretations effective from 1 January 2026: IFRS 9 & IFRS 7 - Classification and Measurement Amendments Adds guidance on SPPI assessment. Introduces disclosures for ESG - linked features. Updates FVOCI equity instrument disclosures. Clarifies recognition/derecognition timing. Annual Improvements to IFRS (Volume 11) - Minor clarifications to IFRS 1, IFRS 7, IFRS 9, IFRS 10 and IAS 7. The adoption of these new and amended standards did not have a material impact on the Group's accounting policies, financial position, or performance. Consequently, the Group has not made any significant changes to its accounting policies or disclosures. New standards and interpretations not yet adopted The following new standards and amendments have been issued but are not yet effective for the financial period ended 30 June 2026. The Group has not early adopted these pronouncements. Based on current assessment, no material impact is expected unless otherwise stated. Effective: 1 January 2027 IFRS 18 - Presentation and Disclosure in Financial Statements IFRS 18, issued in April 2024, will replace IAS 1 Presentation of Financial Statements. The standard introduces new requirements for the presentation and disclosure of information in general purpose financial statements and aims to improve comparability and transparency of financial performance reporting. The principal changes introduced by IFRS 18 include: the introduction of defined categories within the statement of profit or loss (operating, investing, financing, income taxes and discontinued operations); new mandatory subtotals, including operating profit; enhanced requirements relating to management-defined performance measures ("MPMs"), including reconciliations to IFRS measures; revised principles for grouping and disaggregating information in the primary financial statements and notes; amendments to the classification of certain income, expenses and cash flows, including interest and dividend-related cash flows; and additional disclosure requirements relating to the nature and function of operating expenses. The Group is currently assessing the impact of adopting IFRS 18. The Group expects the main effects to arise from presentation and disclosure changes rather than changes to the recognition or measurement of assets, liabilities, income or expenses. Areas to be evaluated include: the classification of investment income and finance-related items within the new profit or loss categories; the presentation of cash flows associated with interest received and interest paid; the identification of any measures reported externally that may meet the definition of management-defined performance measures under IFRS 18; and Note 3 Summary of material accounting policies (continued) opportunities for further disaggregation of income statement and note disclosures. The Group expects that adoption of IFRS 18 will result in changes to the presentation of the consolidated income statement, statement of cash flows and certain note disclosures. The detailed assessment of these impacts is ongoing and the Group is not yet in a position to quantify the effect of adoption. The Group is also assessing the interaction of IFRS 18 with the presentation requirements of IFRS 17 Insurance Contracts, including the classification and presentation of investment-related income and expenses, finance income and expenses arising from insurance contracts, and the presentation of amounts relating to the Group's investment portfolio. The assessment of MPMs is still in progress. IFRS 18 is effective for annual reporting periods beginning on or after 1 January 2027 and must be applied retrospectively. Accordingly, comparative information for the year ending 31 December 2026 will be restated on adoption. In the application of the Group's accounting policies, the Directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The key judgements and the key sources of estimation uncertainty that have the most significant effect on the amounts recognised in the interim financial statements are detailed below. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. The estimates and underlying assumptions are reviewed on an ongoing basis and actual results may differ from these estimates. Estimates of future cash flows to fulfil insurance/reinsurance contracts The Group estimates insurance liabilities in relation to claims incurred. In estimating future cash flows, the Group incorporates, in an unbiased way, all reasonable and supportable information that is available without undue cost or effort at the reporting date. This information includes both internal information and external historical data about claims and other experience, updated to reflect current expectations of future events. Uncertainty in the estimation of future claims and benefit payments arises primarily from the severity and frequency of claims and uncertainties regarding final claim settlement amounts leading to claims and claims-handling expenses growth. This is particularly the case for long tail classes of insurance. As a result of the uncertainties noted, the Group holds a risk adjustment for non-financial risk in the insurance contracts liabilities to reflect the uncertainty relating to all non-financial risks. Assumptions used to develop estimates about future cash flows are reassessed at each reporting date and adjusted where required. Methods used to measure the LIC The Group estimates insurance liabilities and reinsurance assets in relation to claims incurred on a risk basis. Estimates are performed on an accident year basis with further allocation to annual cohorts of portfolios based on available data. Judgement is involved in assessing the most appropriate technique to estimate insurance liabilities for the claims incurred. In certain instances, different techniques or a combination of techniques have been selected for individual accident years or groups of accident years within the same type of contracts. The ultimate cost of outstanding claims is estimated by using a range of standard actuarial claims projection techniques, such as, but not limited to, Chain Ladder, Bornheutter-Ferguson, Initial Expected Loss Ratio and frequency-severity methods. The liabilities for incurred claims represent the cost of claims outstanding. Actuarial techniques, based on statistical analysis of past experience, are used to calculate the estimated cost of claims outstanding at the period end. The estimation of outstanding claims also includes factors such as the potential for inflation and the impact of the Personal Injuries Guidelines. Provisions for more recent claims make use of techniques that incorporate expected loss ratios and average claims costs (adjusted for inflation) and frequency methods. The average claims cost and frequency methods are particularly relevant when calculating the ultimate cost of the current accident year. We have retained the same methodologies and assumptions for injury claims as those adopted at year end. Note 3 Summary of material accounting policies (continued) The calculation of reserves is particularly sensitive to the actuarial best estimate of the ultimate cost of claims, in particular for the long tail classes of business. Actual claims experience may differ from the assumptions on which the actuarial best estimate is based and the cost of settling individual claims may exceed that assumed. The actual amount recovered from reinsurers is sensitive to the same uncertainties as the underlying claims. To the extent that the underlying claim settles at a lower or higher amount than that assumed this will have an influence on the associated reinsurance asset. To minimise default exposure, the group's policy is that all reinsurers should have a credit rating of Aor better or have provided alternative satisfactory security. Discount rates The Group is required to discount future cash flows related to incurred claims as the weighted time to settlement is greater than one year from the date claim occurred. The Group determines the discount rate using a bottom-up approach. Under this approach, the discount rate is determined as the risk-free yield curve adjusted for differences in liquidity characteristics between the financial assets used to derive the risk-free yield and the relevant liability cash flows (known as an illiquidity premium). The Group uses the Euro denominated EIOPA prescribed rates under Solvency II as the risk-free yield curve. The EIOPA EUR spot rates are derived from market observable EUR swap rates for durations one to twenty years. The illiquidity premium is determined by reference to observable market rates. The reference asset portfolio for the company's liabilities is the government and corporate bond portfolio. The liquidity profile of the reference asset portfolio is similar to the liquidity profile of the liabilities. The Group's approach to determining the illiquidity premium in the bond portfolio is to determine the yield reference asset portfolio and deduct the equivalent risk-free rate after adjusting for credit risk. The yield curves used to discount the estimates of future cash flows are as follows: Currency 1 year 3 years 5 years 10 years 15 years 20 years 30 June 2025 EUR 2.2 % 2.3 % 2.5 % 2.8 % 3.0 % 3.0 % 31 December 2025 EUR 2.2 % 2.4 % 2.6 % 3.0 % 3.2 % 3.3 % 30 June 2026 EUR 3.0 % 3.0 % 3.0 % 3.2 % 3.4 % 3.5 % Methods used to measure the risk adjustment for non-financial risk The risk adjustment for non-financial risk is the compensation that is required for bearing the uncertainty about the amount and timing of cash flows that arises from non-financial risk as the insurance contract is fulfilled. As the risk adjustment represents compensation for uncertainty, estimates are made on the degree of diversification benefits and expected favourable and unfavourable outcomes in a way that reflects the Group's degree of risk aversion. The Group estimates an adjustment for non-financial risk separately from all other estimates. Diversification benefits were considered to account for the low probability of all unfavourable outcomes occurring at the same time and the correlation (or lack thereof) of some possible outcomes. The risk adjustment is calculated at the entity level and then allocated down to each group of contracts in accordance with their risk profiles. Allocations of the risk adjustment to each underwriting year (annual cohort) of contracts and over portfolios are made based on a systematic approach using management judgement. This typically involves allocating a higher proportion of risk adjustment to longer tailed lines and more recent underwriting years that are less developed and therefore more uncertain, compared to the proportion of risk adjustment allocated to older, more developed years. A confidence level approach is used to derive the overall risk adjustment for non-financial risk. The Group aim to target a risk adjustment within a range between the 75th and 80th percentiles. At half-year 2026, the risk adjustment for non-financial risk was at the 80th percentile and was unchanged from year-end 2025 (half-year 2025 was also the 80th percentile). Note 3 Summary of material accounting policies (continued) As the Group is using the PAA method, a risk adjustment for non-financial risk is only required for the LIC and not the LRC (unless there is an onerous group). To determine the risk adjustment for non-financial risk for reinsurance contracts, the Group apply these techniques both gross and net of reinsurance and derive the amount of risk transferred to the reinsurer as the difference between the two results. The methods used to determine the risk adjustment at half-year 2026 for non-financial risk were unchanged from year-end 2025. Note 4 Finance income / (expense) recognised in comprehensive income The Group disaggregates finance income or expense on insurance contracts issued and reinsurance contracts held between income statement and OCI. The impact of changes in market interest rates on the value of the insurance liabilities are reflected in OCI, in order to minimise accounting mismatches between the accounting for financial assets and (re)insurance assets and liabilities. The Group adopts a conservative investment strategy under which insurance contract liabilities are backed with fixed interest assets of similar currency and duration. All of the Group's fixed interest securities are classified as FVOCI whereby accumulated mark to market gains or losses are reclassified to the profit or loss account on derecognition. The tables below detail: the element of interest accretion on the LIC from the prior reporting period; and the effect of changes in interest rates and other financial assumptions during the period on the finance income/(expense) recognised in comprehensive income. Total investment return during the period is detailed in note 6 including the corresponding mark to market gains or losses on FVOCI recognised. Half year ended Half year ended Year ended 30/06/26 30/06/25 31/12/25 €000s €000s €000s Finance (expense) / income from insurance contracts issued recognised in comprehensive income: Interest accreted Effect of changes in interest rates and other financial assumptions during the period (2,988) 1,653 (3,389) (10,742) (3,208) 251 Total (1,335) (6,597) (10,491) Represented by: Amounts recognised in profit or loss (5,655) (5,251) (7,659) Amounts recognised in OCI 4,320 (1,346) (2,832) Note 4 Finance income / (expense) recognised in comprehensive income (continued) Half year ended Half year ended Year ended 30/06/26 30/06/25 31/12/25 €000s €000s €000s Finance income / (expense) from reinsurance contracts held recognised in comprehensive income: Interest accreted Effect of changes in interest rates and other financial assumptions during the period 364 (247) 455 269 1,426 (260) Total 117 724 1,166 Represented by: Amounts recognised in profit or loss 846 186 775 Amounts recognised in OCI (729) 538 391 Note 5 Segmental information Operating segments Basis of Organisation The Group determines its reportable segments based on the internal reports regularly reviewed by the Chief Operating Decision Maker (CODM) to allocate resources and assess performance. The Group has identified its operating segments by considering the nature of its business activities, the way it manages these activities and the financial information available for decision-making. In the front part of the Half Yearly Report, the Group provides a discussion of performance across various sectors (Farmer, Business and Retail) as part of its narrative reporting. This analysis is based solely on a sales view of gross written premium (GWP) and is intended to provide insight into the Group's business activities and market dynamics. The Motor and Non-Motor classifications as per Note 12 are used solely to meet specific disclosure requirements under IFRS 17 and reflect insurance portfolios with similar risks. These classifications do not represent operating segments under IFRS 8, as the CODM reviews and manages underwriting activities as a single General insurance segment. The determination of operating segments is based on the internal reports reviewed by the CODM for resource allocation and performance assessment. The CODM reviews and manages the Group's underwriting activities as a single portfolio under the General insurance segment. No discrete financial information is prepared, or no resource allocation is performed at the sector or portfolio level. This approach ensures that the disclosed operating segments reflect the manner in which the business is managed internally. The Group is organised around two primary business activities: General insurance: This includes all underwriting activities for motor and non-motor products. Other services: Comprises all non-underwriting activities, including administrative functions and financial services. These segments reflect the way management internally reviews performance and allocates resources. Factors Used to Identify Reportable Segments Nature of Products and Services The General insurance segment encompasses underwriting operations for motor and non-motor insurance portfolios, while the Other services segment relates to non-underwriting activities, such as administrative costs and financial services and are presented as All other segments as these business units do not meet the quantitative thresholds as per IFRS 8 - Operating segments. Review by the CODM The CODM, identified as the Executive Management Team (EMT), reviews financial and operational data for the General insurance and Other services segments. Although GWP is reviewed by sector and Note 5 Segmental information (continued) product internally, resource allocation decisions are made for the underwriting and non-underwriting businesses activities as a whole. Availability of Discrete Financial Information Discrete financial information is available at the level of General insurance (underwriting) and Other services (non-underwriting). This includes detailed financial results, such as revenue, expenses, and profitability metrics. The following is an analysis of the Group's revenue and results from continuing operations by reportable segments: Half year ended 30/06/2026 General insurance €000s All other segments €000s Total €000s Insurance revenue 253,050 - 253,050 Insurance service expenses (188,554) - (188,554) Net expense from reinsurance contracts held (3,044) - (3,044) Insurance service result 61,452 - 61,452 Total investment return 15,546 122 15,668 Net insurance finance expenses (4,809) - (4,809) Net insurance and investment result 72,189 122 72,311 Other finance costs (1,272) - (1,272) Non-attributable expenses (20,662) - (20,662) Other provision charges (3,653) - (3,653) Revenue from contracts with customers - 2,040 2,040 Financial services income and expenses (57) (5,240) (5,297) Revaluation of property, plant and equipment - - - Profit/(loss) before taxation 46,545 (3,078) 43,467 Income taxation (charge)/credit (5,818) 383 (5,435) Profit/(loss) for the period 40,727 (2,695) 38,032 Other information Insurance acquisition expenses (48,800) - (48,800) Depreciation/amortisation (8,725) - (8,725) Impairment of other assets (341) - (341) Capital additions 6,563 - 6,563 Statement of financial position as at period end Segment assets 1,359,792 26,606 1,386,398 Segment liabilities (897,567) (6,022) (903,589) Half year ended 30/06/2025 General insurance All Other Segments Total €000s €000s €000s Insurance revenue 235,093 - 235,093 Insurance service expenses (256,988) - (256,988) Net income from reinsurance contracts held 58,210 - 58,210 Insurance service result 36,315 - 36,315 Total investment return 12,941 201 13,142 Net insurance finance expenses (5,065) - (5,065) Net insurance and investment result 44,191 201 44,392 Other finance costs (1,281) - (1,281) Non-attributable expenses (19,587) - (19,587) Other provision charges (2,980) - (2,980) Revenue from contracts with customers - 1,175 1,175 Financial services income and expenses (136) (4,462) (4,598) Revaluation of property, plant and equipment - - - Profit/(loss) before taxation 20,207 (3,086) 17,121 Income taxation (charge)/credit (2,526) 220 (2,306) Profit/(loss) for the period 17,681 (2,866) 14,815 Other information Insurance acquisition expenses (45,403) - (45,403) Depreciation/amortisation (8,182) - (8,182) Capital additions 6,524 - 6,524 Statement of financial position as at period end Segment assets 1,363,406 41,235 1,404,641 Segment liabilities (915,719) (12,139) (927,858) Year ended 31/12/2025 General insurance All Other Segments Total €000s €000s €000s Insurance revenue 486,751 - 486,751 Insurance service expenses (428,325) - (428,325) Net income from reinsurance contracts held 34,221 - 34,221 Insurance service result 92,647 - 92,647 Total investment return 24,314 345 24,659 Net insurance finance expenses (6,884) (6,884) Net insurance and investment result 110,077 345 110,422 Other finance costs (2,567) - (2,567) Non-attributable expenses (40,621) - (40,621) Other provision charges (7,173) - (7,173) Revenue from contracts with customers - 2,600 2,600 Financial services income and expenses (53) (8,449) (8,502) Impairment of property, plant and equipment (3) - (3) Profit/(loss) before taxation 59,660 (5,504) 54,156 Income taxation (charge)/credit (7,518) 525 (6,993) Profit/(loss) for the period 52,142 (4,979) 47,163 Other information Insurance acquisition expenses (93,804) - (93,804) Depreciation/amortisation (16,585) - (16,585) Impairment of other assets (553) - (553) Capital additions 17,939 1,053 18,992 Statement of financial position as at period end Segment assets 1,344,036 25,732 1,369,768 Segment liabilities (886,705) (5,783) (892,488) The Group's reportable segment derives revenue from various products and services, offering insurance cover for Motor, Employers' and Public Liability, and Property. The Group's customer base is diverse, and it has no reliance on any major customer. Insurance risk is not concentrated on any area or on any one line of business. The accounting policies of the reportable segments are the same as the Group accounting policies. Segment profit represents the profit earned by each segment. Central administration costs and Directors' salaries are allocated based on actual activity. Income taxation is a direct cost of each segment. In monitoring segment performance and allocating resources between segments: All assets are allocated to reportable segments. Assets used jointly by reportable segments are allocated on the basis of activity by each reportable segment; and All liabilities are allocated to reportable segments. Liabilities for which reportable segments are jointly liable are allocated in proportion to segment assets. Note 5 Segmental information (continued) Geographical segments The Group's operations are located in Ireland. Insurance service expenses Half year Half year Year ended ended ended 30/06/26 30/06/25 31/12/25 €000s €000s €000s Insurance service expenses, in the General Insurance segment, comprise the following: Incurred claims and other expenses Changes that relate to past service - changes in Fulfilment Cash Flows (FCF) relating to the LIC Amortisation of insurance acquisition cash flows (147,745) 7,991 (48,800) (229,517) (372,016) 17,932 37,495 (45,403) (93,804) Total (188,554) (256,988) (428,325) Half year Half year Year ended ended ended 30/06/26 30/06/25 31/12/25 €000s €000s €000s Total insurance acquisition and non-attributable expenses, in the General Insurance segment, comprise the following: Amortisation of insurance acquisition cash flows Non-attributable expenses (48,800) (20,662) (45,403) (93,804) (19,587) (40,621) Total expenses (69,462) (64,990) (134,425) The tables below provide further details of the expenses of the General Insurance segment: Half year ended 30/06/26 Amortisation of insurance acquisition cash flows €000s Non-attributable €000s Total €000s Employee benefit expense 22,956 11,171 34,127 Depreciation 947 544 1,491 Amortisation 6,245 989 7,234 Other 18,652 7,958 26,610 Total 48,800 20,662 69,462 Note 5 Segmental information (continued) Half year ended 30/06/25 Amortisation of insurance acquisition cash flows Non-attributable Total €000s €000s €000s Employee benefit expense 21,771 10,824 32,595 Depreciation 939 507 1,446 Amortisation 6,000 736 6,736 Other 16,693 7,520 24,213 Total 45,403 19,587 64,990 Year ended 31/12/25 Amortisation of insurance acquisition cash flows Non-attributable Total €000s €000s €000s Employee benefit expense 45,959 22,365 68,324 Depreciation 1,696 1,343 3,039 Amortisation 12,217 1,329 13,546 Other 33,932 15,584 49,516 Total 93,804 40,621 134,425 Note 6 Total investment return The net gain or loss for each class of financial instrument and investment properties by measurement category is as follows: Half year ended 30/06/2026 Amortised Cost €000s FVOCI Designated €000s FVTPL Designated €000s FVTPL Mandatory €000s Total €000s Interest income from financial assets Cash and cash equivalents 395 - - 849 1,244 Government bonds - 1,889 - - 1,889 Other debt securities - 7,533 - - 7,533 395 9,422 - 849 10,666 Net gain on FVTPL investments Collective investment scheme - - - 5,368 5,368 Unquoted investments - - - 12 12 - - - 5,380 5,380 Other Expenses, net of income, from investment properties - - - (40) (40) Net credit impairment loss - (77) - - (77) Net gain on FVOCI debt securities - 401 - - 401 - 324 - (40) 284 Recognised in income statement 395 9,084 - 6,189 15,668 Recognised in OCI - 662 - - 662 Recognised in total comprehensive income 395 9,746 - 6,189 16,330 During the period to 30 June 2026 a loss of €261,000 on FVOCI investments was reclassified from Other Comprehensive Income to the Consolidated Income Statement. Amortised Cost FVOCI FVTPL FVTPL Total Note 6 Total investment return (continued) Half year ended 30/06/2025 €000s Designated €000s Designated €000s Mandatory €000s €000s Interest income from financial assets Cash and cash equivalents 601 - - 1,065 1,666 Government bonds - 895 - - 895 Other debt securities - 6,206 - - 6,206 601 7,101 - 1,065 8,767 Net gain on FVTPL investments Collective investment scheme - - - 5,215 5,215 Unquoted investments - - - 12 12 - - - 5,227 5,227 Other Income, net of expenses, from investment properties - - - 23 23 Net credit impairment loss - (76) - - (76) Net gain on FVOCI debt securities - 7,616 - - 7,616 - 7,540 - 23 7,563 Recognised in income statement 601 6,226 - 6,315 13,142 Recognised in OCI - 8,415 - - 8,415 Recognised in total comprehensive income 601 14,641 - 6,315 21,557 During the period to 30 June 2025 a loss of €799,000 on FVOCI investments was reclassified from Other Comprehensive Income to the Consolidated Income Statement. Note 6 Total investment return (continued) Amortised Cost FVOCI FVTPL FVTPL Total Year ended 31/12/2025 Designated Designated Mandatory €000s €000s €000s €000s €000s Interest income from financial assets Cash and cash equivalents 1,065 - - 1,949 3,014 Government bonds - 2,623 - - 2,623 Other debt securities - 12,542 - - 12,542 1,065 15,165 - 1,949 18,179 Net gain on FVTPL investments Collective investment scheme - - - 7,858 7,858 Unquoted investments - - - 43 43 - - - 7,901 7,901 Other Expenses, net of income, from investment properties - - - (60) (60) Unrealised loss on investment properties - - - (500) (500) Net credit impairment loss - (41) - - (41) Net gain on FVOCI debt securities - 7,030 - - 7,030 - 6,989 - (560) 6,429 Recognised in income statement 1,065 14,304 - 9,290 24,659 Recognised in OCI - 7,850 - - 7,850 Recognised in total comprehensive income 1,065 22,154 - 9,290 32,509 During the year to 31 December 2025 a loss of €820,000 on FVOCI investments was reclassified from Other Comprehensive Income to the Consolidated Income Statement. Note 7 Income taxation charge The effective tax rate for the period was 12.5% (30 June 2025: 13.5%) which is the best estimate of the weighted average annual income tax rate expected for the full year. Note 8 Earnings per ordinary share The calculation of the basic and diluted earnings per share attributable to the ordinary shareholders is based on the following data: Half year ended Half year ended Year ended 30/06/26 30/06/25 31/12/25 €000s €000s €000s Earnings Profit for the period for the purpose of basic earnings per share 38,032 14,815 47,163 Profit for the period for the purpose of diluted earnings per share 38,032 14,815 46,881 Number of shares No. No. No. Weighted average number of ordinary shares for the purpose of basic earnings per share (excludes treasury shares) 35,976,890 35,835,371 36,070,472 Weighted average number of ordinary shares for the purpose of diluted earnings per share (excludes treasury shares) 36,990,342 36,834,436 36,866,560 Cent Cent Cent Basic earnings per share 106 41 130 Diluted earnings per share 1 103 40 127 1 Diluted earnings per share reflects the potential vesting of share-based payments. The 'A' ordinary shares of €0.01 each that are in issue have no impact on the earnings per share calculation. 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. Half year Half year Year ended ended ended 30/06/26 30/06/25 31/12/25 €000s €000s €000s The table below reconciles the profit attributable to the parent entity for each period presented 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: Profit attributable to the parent entity for the period 2026 dividend of 0.0 cent (2025: 8.4 cent) per share on 14% non-cumulative preference shares of €0.60 each 2026 dividend of 0.0 cent (2025: 4.8 cent) per share on 8% non-cumulative preference shares of €0.60 each 38,032 - - 14,815 47,163 - (113) - (169) Profit for the period for the purpose of calculating basic and diluted earnings 38,032 14,815 46,881 Note 8 Earnings per ordinary share (continued) Half year ended 30/06/26 Half year ended 30/06/25 Year ended 31/12/25 The table below 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: Weighted average number of ordinary shares for the purpose of calculating basic earnings per share Weighted average of potential vesting of share-based payments 35,976,890 1,013,452 35,835,371 36,070,472 999,065 796,088 Weighted average number of ordinary shares for the purpose of calculating diluted earnings per share 36,990,342 36,834,436 36,866,560 Note 9 Financial instrument and fair value measurement As at 30/06/26 As at 30/ 06/25 As at 31/ 12/25 Financial Instruments (Restated 1 ) (Restated 1 ) €000s €000s €000s Financial Assets At amortised cost: Cash and cash equivalents 47,493 85,517 74,022 Other receivables 1 20,956 19,722 17,299 Loans 328 372 439 At fair value: Cash and cash equivalents 65,020 81,734 96,020 Equity and debt instruments at FVTPL - mandatory 111,145 118,266 105,973 Debt instruments at FVOCI - designated 949,301 864,828 893,192 Financial Liabilities At amortised cost: Other payables 1 15,703 17,573 14,968 Subordinated debt 49,867 49,808 49,839 1 Comparative financial instrument disclosures have been updated to exclude balances which are non-financial assets or liabilities and outside the scope of IFRS 9. This change affects presentation only and has no impact on profit, net assets or cash flows. Equity and debt instruments at FVTPL (mandatory) have increased by €5,172,000 since 31 December 2025 due to €5,412,000 market gains in the period offset by a €240,000 divestment from the portfolio. Other receivables increased by €3,656,000 since 31 December 2025 due to higher accrued income at the reporting date. An ECL for 'Debt instruments at FVOCI' of €588,000 (30 June 2025: €551,000, 31 December 2025: €550,000) does not reduce the carrying amount of the asset in the statement of financial position, which remains at fair value. Instead an amount equal to the allowance that would arise if the assets were measured at amortised cost is recognised in OCI with a corresponding charge to provision for credit losses in the income statement. Note 9 Financial instrument and fair value measurement (continued) An ECL of €100,000 (30 June 2025: €53,000, 31 December 2025: €10,000) has reduced the carrying value of 'Other receivables' and an ECL of €77,000 (30 June 2025: €8,000, 31 December 2025: €7,000), has reduced the carrying value of 'Loans'. Fair value measurement The following table compares the fair value of financial instruments not held at fair value with the fair value of those assets and liabilities: As at As at As at As at As at As at 30/06/26 30/06/26 30/06/25 30/06/25 31/12/25 31/12/25 Fair Carrying Fair Carrying Fair Carrying value value value value value value €000s €000s €000s €000s €000s €000s Assets Loans 394 328 446 372 527 439 Financial liabilities Subordinated debt 49,689 49,867 49,488 49,808 49,697 49,839 The carrying amount of the following assets and liabilities is considered a reasonable approximation of their fair value: Cash and cash equivalents Other receivables Other payables Lease liabilities Certain assets and liabilities are measured in the Consolidated Statement of Financial Position at fair value using a fair value hierarchy of valuation inputs. The following table provides an analysis of assets and liabilities that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the inputs to valuation techniques used to measure fair value is observable. Level 1 Fair value measurements derived from quoted prices (unadjusted) in active markets for identical assets or liabilities. Cash and cash equivalents (Level 1) are valued using the latest available closing NAV of the Money Market Fund. Debt instruments at fair value through other comprehensive income - quoted debt securities are fair valued using latest available closing bid price. Collective investment schemes, fair value through profit or loss (Level 1) are valued using the latest available closing NAV of the funds. Level 2 Fair value measurements derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). There are no assets/liabilities deemed to be held at this level at end of the periods disclosed. Note 9 Financial instrument and fair value measurement (continued) Level 3 Fair value measurements derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). Valuation techniques used are outlined below; Collective investment schemes, fair value through profit or loss (Infrastructure and Senior Private Debt funds) are valued using the most up-to-date valuations calculated by the fund administrator allowing for any additional investments made up until period end. These collective investment schemes are fund-of-funds and typically apply the International Private Equity and Venture Capital Valuation Guidelines (IPEV) as well as other industry guidance and standards. Valuations are subject to external audit at both the underlying fund and fund-of-funds level. It is not possible to provide quantitative information about the significant unobservable inputs as this information is not provided by the underlying funds. Unquoted investments, fair value through profit or loss, are classified as Level 3 as they are not traded in an active market. Investment property and property held for own use were valued by independent external professional valuers at 31 December 2025. During the period, the Directors considered whether any events or market developments had occurred that would indicate a material change in the fair values of these properties. In making this assessment, the Directors reviewed confirmations received from the external valuers, considered changes in relevant property market conditions, assessed property-specific factors and reviewed the key valuation assumptions applied at 31 December 2025. Based on this review, the Directors are satisfied that the fair values determined at 31 December 2025 remain appropriate at 30 June 2026. Group occupied properties have been valued on a vacant possession basis applying hypothetical 10-year leases and assumptions of void and rent free periods, market rents, capital yields and purchase costs which are derived from comparable transactions and adjusted for property specific factors as determined by the valuer. Group investment properties have been valued using the investment method based on the long leasehold interest in the subject property, the contracted values of existing tenancies, assumptions of void and rent free periods and market rents for vacant lots, and capital yields and purchase costs which are derived from comparable transactions and adjusted for property specific factors as determined by the valuer. The independent external valuers considered the impact of sustainability factors on the valuation of both the investment property and property held for own use, including physical / climate risk. The table below shows the unobservable inputs used in fair value measurements of the properties. Fair Value Valuation €000s Technique Unobservable Input Range Properties 24,769 Investment Method Capitalisation Yield 8.25% - 10.5% Estimated Rental Value (per square foot) €8.36 - €44.45 As at 30/06/26 As at 30/06/25 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total €000s €000s €000s €000s €000s €000s €000s €000s Note 9 Financial instrument and fair value measurement (continued) Assets Investment property - - 10,800 10,800 - - 11,300 11,300 Property held for own use - - 13,969 13,969 - - 14,021 14,021 Financial assets Cash and cash equivalents 65,020 - - 65,020 81,734 - - 81,734 Investments at fair value through profit or loss - collective investment schemes 52,996 - 56,969 109,964 60,287 - 56,831 117,118 Investments at fair value through profit or loss -unquoted investments - 1,180 1,180 - - 1,148 1,148 Investments at fair value through other comprehensive income - quoted debt securities 949,301 - - 949,301 864,828 - - 864,828 Total assets 1,067,317 - 82,917 1,150,234 1,006,849 - 83,300 1,090,149 Total liabilities - - - - - - - - As at 31/12/25 Level 1 Level 2 Level 3 Total €000s €000s €000s €000s Assets Investment property - - 10,800 10,800 Property held for own use - - 14,022 14,022 Financial assets Cash and cash equivalents 96,020 - - 96,020 Investments at fair value through profit or loss - collective investment schemes 47,672 - 57,123 104,795 Investments at fair value through profit or loss - unquoted investments - - 1,178 1,178 Investments at fair value through other comprehensive income - quoted debt securities 893,192 - - 893,192 Total assets 1,036,884 - 83,123 1,120,007 Total liabilities - - - - Note 9 Financial instrument and fair value measurement (continued) Half year Half year Year ended ended ended 30/06/26 30/06/25 31/12/25 €000s €000s €000s A reconciliation of Level 3 fair value measurement of financial assets and non-financial assets is shown in the table below. Opening balance Level 3 financial assets and non-financial assets 83,123 77,485 77,485 Additions 140 3,499 6,141 Disposals (2,973) (442) (2,041) Revaluation 2,627 2,811 1,643 Unrealised movements recognised in consolidated income statement - (53) (105) Closing balance Level 3 financial assets and non-financial assets 82,917 83,300 83,123 As at 30/06/26 As at 30/06/25 As at 31/12/25 Number €000s €000s €000s Note 10 Called up share capital presented as equity (i) Ordinary shares of €0.60 each Authorised: At beginning and end of period 51,326,000 30,796 30,796 30,796 Issued and fully paid: At 1 January 2025 36,061,189 - 21,636 21,636 Issued during the period 325,120 - 195 195 At the end of the period 36,386,309 - 21,831 21,831 At 1 January 2026 36,386,309 21,831 - - At the end of the period 36,386,309 21,831 - - (ii) 'A' Ordinary shares of €0.01 each Authorised: At beginning and end of period 120,000,000 1,200 1,200 1,200 Issued and fully paid: At beginning and end of period 13,169,428 132 132 132 Total ordinary share capital 21,963 21,963 21,963 The number of ordinary shares of €0.60 each held as treasury shares at 30 June 2026 was 438,991. At 31 December 2025 and 30 June 2025 the number held was 442,447 and 164,005 respectively. Note 11 Other reserves Revaluation reserve €000s FVOCI reserve €000s Insurance/RI finance reserve €000s Total €000s Balance at 1 January 2026 740 (10,087) 2,357 (6,990) Other comprehensive income - 580 3,142 3,722 Balance at 30 June 2026 740 (9,507) 5,499 (3,268) Balance at 1 January 2025 703 (16,955) 4,493 (11,759) Other comprehensive income - 7,363 (707) 6,656 Balance at 30 June 2025 703 (9,592) 3,785 (5,103) Balance at 1 January 2025 703 (16,955) 4,493 (11,759) Other comprehensive income 37 6,868 (2,136) 4,769 Balance at 31 December 2025 740 (10,087) 2,357 (6,990) Note 12 Insurance and reinsurance contracts The breakdown of groups of insurance contracts issued, and reinsurance contracts held, that are in an asset position and those in a liability position is set out in the table below: As at 30/06/26 Assets €000s Liabilities €000s Net €000s Total insurance contracts issued - (800,631) (800,631) Total reinsurance contracts held 90,611 (62) 90,549 As at 30/06/25 Assets €000s Liabilities €000s Net €000s Total insurance contracts issued - (815,818) (815,818) Total reinsurance contracts held 131,345 (591) 130,754 As at 31/12/25 Assets €000s Liabilities €000s Net €000s Total insurance contracts issued - (792,586) (792,586) Total reinsurance contracts held 82,705 - 82,705 Note 12 Insurance and reinsurance contracts (continued) The roll-forward of the net asset or liability for insurance contracts issued, showing the liability for remaining coverage and the liability for incurred claims for major product lines are disclosed in the tables below: Half year ended 30/06/26 Total insurance contracts issued Liability Excluding loss component €000s for remaining coverage Loss component €000s Liability for Estimates of the present value of future cash flows €000s incurred claims Risk Adjustment €000s Total €000s Insurance contract liabilities as at 01/01 152,432 - 575,186 64,968 792,586 Insurance contract assets as at 01/01 - - - - - Net insurance contract (assets)/liabilities as at 01/01 152,432 - 575,186 64,968 792,586 Insurance revenue (253,050) - - - (253,050) Incurred claims and other expenses - - 137,822 9,923 147,745 Amortisation of insurance acquisition cash flows 48,800 - - - 48,800 Losses on onerous contracts and reversals of those losses - - - - - Changes that relate to past service-Changes in FCF relating to the LIC - - (73) (7,918) (7,991) Insurance service expenses 48,800 - 137,749 2,005 188,554 Insurance revenue less insurance service expenses (204,250) - 137,749 2,005 (64,496) Insurance finance expenses - - 1,335 - 1,335 Total amounts recognised in comprehensive income (204,250) - 139,084 2,005 (63,161) Premium received 252,314 - - - 252,314 Claims and other directly attributable expenses paid - - (130,286) - (130,286) Insurance acquisition cash flows (50,822) - - - (50,822) Total cash flows 201,492 - (130,286) - 71,206 Net insurance contract (assets)/liabilities as at 30/06: Insurance contract liabilities as at 30/06 149,674 - 583,984 66,973 800,631 Insurance contract assets as at 30/06 - - - - - Net insurance contract (assets)/liabilities as at 30/06 149,674 - 583,984 66,973 800,631 Note 12 Insurance and reinsurance contracts (continued) Half year ended 30/06/26 Motor insurance contracts issued Liability Excluding loss component €000s for remaining coverage Loss component €000s Liability for Estimates of the present value of future cash flows €000s incurred claims Risk Adjustment €000s Total €000s Insurance contract liabilities as at 01/01 69,911 - 288,750 34,253 392,914 Insurance contract assets as at 01/01 - - - - - Net insurance contract (assets)/liabilities as at 01/01 69,911 - 288,750 34,253 392,914 Insurance revenue (117,660) - - - (117,660) Incurred claims and other expenses - - 68,288 4,978 73,266 Amortisation of insurance acquisition cash flows 23,105 - - - 23,105 Losses on onerous contracts and reversals of those losses - - - - - Changes that relate to past service-Changes in FCF relating to the LIC - - 1,396 (3,518) (2,122) Insurance service expenses 23,105 - 69,684 1,460 94,249 Insurance revenue less insurance service expenses (94,555) - 69,684 1,460 (23,411) Insurance finance expenses - - 763 - 763 Total amounts recognised in comprehensive income (94,555) - 70,447 1,460 (22,648) Premium received 119,962 - - - 119,962 Claims and other directly attributable expenses paid - - (60,159) - (60,159) Insurance acquisition cash flows (24,294) - - - (24,294) Total cash flows 95,668 - (60,159) - 35,509 Net insurance contract (assets)/liabilities as at 30/06: Insurance contract liabilities as at 30/06 71,024 - 299,038 35,713 405,775 Insurance contract assets as at 30/06 - - - - - Net insurance contract (assets)/liabilities as at 30/06 71,024 - 299,038 35,713 405,775

View stock analysis, news, and events for Fbd Holdings Plc