FBD HOLDINGS PLC
Annual Report 2024
FBD / AT A GLANCE
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.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
2
Profit
before tax
€77.1m
(2023: €81.4m)
Insurance
Revenue
€441m
(2023: €401m)
Earnings per
Share
186c
(2023: 194c)
Return
on Equity1
14%
(2023: 15%)
Net Asset
Value per
share1
1,346c
(2023: 1,330c)
Combined operating
ratio1
84.9%
(2023: 80.9%)
1 Further information on these measures is found in Alternative Performance Metrics on pages 282 to 288.
2024 PERFORMANCE
HIGHLIGHTS
IN THIS REPORT
Management's Review
4
Financial Highlights
5
Our Purpose
6
Chairman's Statement
7
Review of Operations
10
Our Business Model
16
Our Strategy
17
Risk & Uncertainties Report
18
Governance
28
Board of Directors
28
Corporate Information
33
Report of the Directors
34
Corporate Governance
42
Nomination & Governance Report
67
Report on Directors’ Remuneration
74
Directors’ Responsibilities Statement
95
Sustainability Statement
96
General
97
Statement of Directors' Responsibilities for
Sustainability Statement
97
ESRS 2 General disclosures
101
Environmental
128
ESRS E1 Climate Change
128
EU Taxonomy Regulation
140
Social
146
ESRS S1 Own Workforce
146
ESRS S4 Consumers and end-users
157
Entity-Specific : Farm Safety
159
Governance
163
ESRS G1 Business Conduct
163
Appendix
169
Independent practitioners’ limited assurance report
177
Funding Backing Donating
181
Financial Statements
188
Independent Auditors’ Report
189
Consolidated Income Statement
198
Consolidated Statement of Comprehensive Income
199
Consolidated Statement of Financial Position
200
Consolidated Statement of Cash Flows
202
Consolidated Statement of Changes in Equity
203
Company Statement of Financial Position
204
Company Statement of Cash Flows
205
Company Statement of Changes in Equity
206
Notes to the Financial Statements
207
Other Information
282
Alternative performance measures
282
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
3
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
4
MANAGEMENT'S
REVIEW
BUILDING OUT FROM
OUR FARMING ROOTS
To serve the general insurance needs of farmers;
businesses and retail customers throughout Ireland.
FBD BUSINESS INSURANCE CUSTOMER
Nicola: "We started with a food
stall at farmer's markets and food
festivals. The support of FBD has
been great. When we first opened
our business and we were looking
for someone to insure us and
someone to support us, they
were the ones that backed us.”
Dvir Nusery & Nicola Crowley
Mezze, Tramore, Co. Waterford.
Financial Highlights
2024
2023
€000s
€000s
Insurance revenue
441,005
401,026
Profit before tax
77,065
81,410
Gross written premium3
460,219
413,593
Underwriting result3
66,601
76,459
2024
2023
Cent
Cent
Basic earnings per share
186
194
Diluted earnings per share1
183
190
Net asset value per share3
1,346
1,330
Ordinary dividend per share proposed
100
100
Ordinary dividend per share paid4
100
100
Special dividend per share paid
100
100
2024
2023
%
%
Combined operating ratio2,3
84.9 %
80.9 %
Return on equity3
14 %
15 %
1 Diluted earnings per share reflects the potential vesting of share-based payments.
2 Combined operating ratio includes discounting.
3 Further information on measures referred to in our Financial Highlights is found in Alternative Performance Measures on pages 282 to 288.
4 Ordinary dividend per share paid for previous financial year.
Financial Calendar
Preliminary announcement
7 March 2025
Dividend record date
2 May 2025
Annual General Meeting
8 May 2025
Dividend payment date
11 June 2025
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
5
Our Purpose
FBD’s purpose is to support, protect, and stand
with Ireland’s people, families, farmers, and businesses
to enable our customers to grow and thrive.
We are proud of our roots in farming; of our Irish heritage and of FBD's proposition for this market.
A proposition that has developed and evolved through our rich expertise; customer knowledge and
our immersion in the communities we serve. We appreciate the trust of our customers.
We evolve to meet the changing needs of our customers and the next generation of customers.
We continue to support Ireland's people, families and businesses in the same way we have supported
Ireland’s farmers for generations. We continue to carefully grow our business, building the brand and
securing FBD’s future.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
6
•Respect
•Belief
•Continuous Improvement
•Community
•Accountability
•Engagement
Farmers
Retail
Business
Partners
Our Customers
are at the heart of
what we do
An Irish insurer,
supporting & sustaining
local communities
Chairman's Statement
Dear Shareholder,
PERFORMANCE
I am pleased to report that FBD Group ("Group") has
delivered another strong performance in 2024, with a
proposed ordinary dividend payment to our
shareholders of 100 cent per share.
We have recorded a Group Profit Before Tax of €77m for
2024. Our Net Asset Value per share increased to 1,346
cent, after the payment of both ordinary and special
dividends of 100c each in 2024. This result was
supported by increased investment returns and reflects
the profitable growth being delivered under our strategy
and is a testament to the dedication and focus of our
management team.
CUSTOMERS
2024 saw another year of growth across each customer
sector. We have again seen an increase in the average
policy holding in our Farmer sector, with almost 15,000
more policies than this time last year, this is a strong
reflection of our customer focused strategy. We also
saw very strong levels of new business, up materially on
2023, with our partnership offerings through An Post
Insurance and Bank of Ireland, as well as our direct
Retail channels contributing.
At FBD a core component of our strategy is building
long term relationships with our customers through
providing them with an advice, service and product
proposition that is of value to them. Our continued
success in this regard is evidenced through our strong
retention rates which have further strengthened in
2024.
It was especially pleasing to see FBD’s excellence in
customer service being acknowledged through an
increase in our overall ranking in the 2024 CXi Report.
This report also highlighted the above average positive
impact our staff have on our customers experience
which would not be possible without the dedication of
our employees. On behalf of the Board I would like to
thank you all.
BOARD OF DIRECTORS
We lost two colleagues and friends following the sad
passing of David O'Connor and John O'Dwyer. We miss
their wise counsel and may they rest in peace.
Tim Cullinan stepped down as Independent Non-
Executive Director in September 2024 and we thank him
for his contribution to FBD.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
7
“I am pleased to report that
FBD Group has delivered
another strong performance
in 2024, with a proposed
ordinary dividend payment
to our shareholders of 100
cent per share.”
Liam Herlihy
Chairman
Ms Kate Tobin joined the Board in January 2024 as
Executive Director and we also welcomed three new
Independent Non-Executive Directors to the Board over
2024, Ms Olive Gaughan, Mr Francie Gorman and Mr Jim
Bergin. Together they bring vast experience and
knowledge to the Board and we wish them well in their
roles.
As reported in our 2023 Annual Report, a process was
underway to identify a successor for Chair of the Board.
This process positively concluded in Mr Jim Bergin being
appointed as successor and he will take up this role
immediately following our 2025 AGM. Jim and I are
working closely together to ensure a smooth transition
of this role.
FBD remains committed to ensuring that it has a high-
performing Board, which is equipped to anticipate, meet
and overcome future challenges and risks and to ensure
alignment with the Group’s long-term strategy. In 2024,
Members of our Board and Executive Management Team
took to the road for two customer site visits. We value
the importance of understanding our customers needs
which enables us to provide them with products more
suitable to them. Further details can be found in the
Governance section of the Annual Report.
SUSTAINABILITY
FBD is part of the first wave of reporters under the
Corporate Sustainability Reporting Directive (CSRD)
which aims to improve non-financial reporting and is a
great showcase for all the Environmental, Social and
Governance (ESG) activity FBD undertakes year after
year. Our Sustainability Committee implements the
Board approved ESG strategy, and we have made
significant progress in 2024.
Following on from our 2023 contribution towards the
Teagasc facility in Moorepark, Fermoy, FBD and
University College Dublin announced a major Corporate
Advocacy Initiative, an investment in a new agricultural
science centre at UCD Lyons Farm, in August 2024. A
contribution of €1.5 million by FBD Holdings plc will go
towards construction of the new centre, which is due to
commence in 2025, and will enhance UCD’s ability to
deliver both teaching and research to the highest
international standards and will be a focal point for all
users. This investment highlights our commitment to
supporting Ireland’s farming communities, education,
agriculture as a whole and the food industry.
In 2024 FBD became a signatory of the UN Environment
Programme Finance Initiative Principles for Sustainable
Insurance ("UNEP FI PSI"). As part of this initiative, we
will work to further embed the principles into our
business and will continue to report annually on our
progress in implementing them. FBD has also committed
to annual reporting under the Carbon Disclosure Project
(CDP) demonstrating our continued commitment to
transparency around our emissions.
We are proud to continue our support of the next
generation of farm leaders and innovators through our
partnerships with Teagasc, UCD, Nuffield and the
Agriculture Science Association. 2024 saw the first year
of the Teagasc / FBD Environmental Sustainability
Awards which recognise farmers who are operating
sustainable, profitable farming systems, whilst
incorporating the latest scientific developments and
technologies on their farms.
As we know, farming is a high-risk industry which
presents many challenges. While there has been a
decline in the number of fatal accidents in agriculture
over the last 4 years, there is no room for complacency.
FBD’s Farm Safety campaigns aim to encourage farmers
to make small but meaningful changes to their working
behaviour and we do this through seminars,
communications, signage, mart awareness, training as
well as live events at shows up and down the country.
While farmers’ attitudes to health and safety are
generally positive, simple changes can make a big
difference.
The National Ploughing Championships in Ratheniska
was a great success in September, with the weather
thankfully kinder to us than last year. The FBD
leadership team and our people are always well
represented at events such as this, the Tullamore Show
and Beef Open Day amongst others, as they are a great
opportunity to engage with our customers.
At FBD, we believe that an inclusive diverse, and
equitable workforce is critical for the success of our
organisation, it was therefore with great pride that we
received Gold accreditation for investors in Diversity,
through the Irish Centre for Diversity. We will continue,
in 2025 and beyond, to build and maintain our inclusive
organisation and to continue to implement measures to
address our gender pay gap. FBD are a committed
signatory of the Women in Finance Charter, and partner
with industry initiatives such as VOiCE for Insurance.
Over 2024, I am pleased to note that female
membership on our Board has grown and has now
reached 45%.
More details on all our activity can be found under our
Sustainability Statement later in the Annual Report.
CAPITAL / DIVIDEND
The Board has set a Dividend Policy that aligns with its
belief that it is in the long-term interest of all
stakeholders to focus on annual dividend sustainability
while maintaining a robust capital position.
In light of the strong financial performance for 2024 the
Board are happy to propose an ordinary dividend of 100
cent per share. This follows a special dividend of 100
cent per share declared in August 2024. This reflects our
continuing confidence in the underlying profitability and
future prospects of our Group. Our capital position
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
8
remains strong with a Solvency Capital Ratio of 197%
(unaudited) at 31st December 2024, after ordinary
dividend and an allowance for the impact of weather
experience in January 2025 (2023: 213%).
CONCLUSION
Our customer focused strategy, leveraging technology
and the strength of our people to deliver profitable
growth, has been the foundation that has enabled us to
deliver positive outcomes for all stakeholders during
2024.
I would like to thank my colleagues on the Board for
their continued support, expert guidance, and hard work
during the year. I would also like to thank our growing
number of loyal customers, we welcome the opportunity
to repay your trust and confidence in FBD over the
coming years.
Finally, having served over nine years on the Board of
FBD, I will retire as Chairman at the upcoming AGM. I
would like to take this opportunity to thank all members
of the Board, past and present, our employees and all
our shareholders for their support. I wish my successor
Jim Bergin the very best as he assumes the
Chairmanship of the Board.
With Best Regards.
LIAM HERLIHY
Chairman
6 March 2025
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
9
Review of Operations
“2024 has been another year of
strong performance. 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."
Tomás Ó Midheach
Group Chief Executive Officer
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.
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
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
10
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.
Further information on measures referred to in our Review of Operations is found in our Alternative Performance Measures on pages 282 to 288.
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:
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
11
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
1 Corporate bond income increased in 2024 as maturities were re-invested at
higher interest rates and allocations increased
2 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
3 Return on Deposits and Cash has increased on higher average rates over
2024
4 Equities major driver of Risk asset returns
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
€40m divested 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
shown in the table below.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
12
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%.
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 this report on pages 96
to 176.
In January 2024 FBD became a signatory of the 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.
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
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
13
1 Bloomberg market pricing
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 Eowyn 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.
TOMÁS Ó MIDHEACH
Group Chief Executive Officer
6 March 2025
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
14
Key Highlights
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
15
At FBD Insurance we have over 50 years of experience
dealing with your insurance needs. Support extends to all
aspects of our business from our claims advice, safety
initiatives and customer proposition to community
programs and sponsorships.
Our Farm customers
represent 50%
of our premium
50%
FARMER
Our Business customers
represent 30%
of our premium
30%
BUSINESS
Our Retail customers
represent 20%
of our premium
20%
RETAIL
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
16
Our People
The expertise, experience and
local knowledge of our 1,000+
employees provides our
customers with a proposition
they value based on in-depth
understanding of their
requirements.
Social
FBD is a responsible member
of local communities
throughout Ireland. Providing
significant support to farm,
business and community
groups.
Relationships
Founded by farmers for
farmers, FBD has an unrivalled
knowledge of farm enterprises
through over 50 years of
protection and close
relationships with our farming
organisations. Today FBD
serves farmer, business and
retail customers.
Suppliers & Partners
FBD operates with a wide
range of suppliers & partners
to support the delivery of a
valued proposition to our
customers.
Customer focus
With 34 offices located across
the country and a multichannel
distribution strategy, we are
never far away and always
ready to support our
customers.
Manage Claims
FBD maintains its customer
focus throughout the claims
process. We are focused on
paying honest claims quickly
and efficiently.
Capital
Management
Deployment of capital is
prudent & return focused.
Maintaining a strong capital
position is paramount.
FBD creates value through our customer
focus, our broad distribution network and
our expertise in three main customer
segments; Farmer, Business and Retail.
Underwriting Risk
Selection
At FBD we understand the
Irish farm, business and retail
customer. We measure and
model risk effectively which
enables us to price accurately,
competitively and fairly.
Investment Policy
FBD follows a structured
investment policy. We manage
our assets and liabilities to
ensure we meet our
obligations to our customers.
INPUTS2
CREATE VALUE
Our Proposition
Our proposition
encompasses an excellent
customer experience and
protecting our customers
through our range of farm,
business and retail products.
Our Distribution
We meet the customer
where they choose to shop.
FBD offers great service
through our 34 branches, on
the phone, online and
through our broker and our
partner network.
FBD delivers an excellent customer and
employee experience at all points in their
journey with us.
OUTPUTS4
STAKEHOLDER OUTCOMES5
Position FBD for the future, deliver for our
customers and all other stakeholders
including:
Our Customers
Our customers are at the
heart of what we do. We
invest in understanding
them & having a complete
picture of them and in
delivering a proposition
they value.
Our Investors
We focus on delivering
measured profitable
growth which increases the
value of the business and
delivers sustainable returns
for our shareholders.
Our Regulator
We deliver on our
commitments to the
regulator and endeavour to
meet their evolving
expectations to the highest
standards.
Our People
We promote diversity and
inclusion in our workforce.
We invest in our people,
helping them to grow. We
provide market competitive
rewards and benefits linked
to individual and Group
performance. We foster
individual and organisational
effectiveness.
Wider Society & ESG
FBD is recognised as the
Irish insurer supporting local
communities. We deliver on
our sustainability
commitments and support
our customers in theirs.
Our Business Model is focused on creating
value for all our stakeholders.
Financial Advisory
Services
FBD Life & Pensions
provides advice to personal
and corporate customers,
through our team of financial
planning advisors.
Financial
FBD seeks to deliver
measured profitable growth
while maintaining a resilient
and stable balance sheet.
Deployment of capital is
prudent and return focused.
Maintaining a strong capital
position is paramount.
Environment
FBD seeks to do business in
a sustainable way evidenced
through investment choices
and operational activities,
Our reinsurance programme
supports our resilience in
respect of extreme weather
events, supporting the
protection we offer to our
customers.
Data & Technology
FBD leverages data and
technology to understand
our customers better and to
enhance our customer and
employee experience.
FBD is a leading general insurer serving the needs of farmers,
business and retail customers throughout Ireland3.
FBD'S Business Model1
Subject to limited assurance:
1 ESRS 2 SBM-1 42, ESRS 2 SBM-1 42c
2 ESRS 2 SBM-1 42a
3 ESRS 2 SBM-1 40 a ii
4 ESRS 2 SBM-1 40 a i
5 ESRS 2 SBM-1 42b
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
17
OUR
CUSTOMERS
TEAMS &
COLLABORATION
DATA &
TECHNOLOGY
Our Customers
Our People
Our Investors
Wider society & ESG
Our Regulator
Y
PILLARS DELIVERING
OUR STRATEGY
Customer Proposition
Data
Continuous Improvement
Value
People
Technology
Claims
ESG
STRATEGIC
AMBITION
OUR CUSTOMERS
We have a complete picture of them,
understand them and deliver a
proposition they value.
WIDER SOCIETY & ESG
We are recognised as the Irish insurer
supporting local communities. Delivering
on our sustainability commitments and
supporting our customers in theirs.
OUR PEOPLE
Foster individual and organisational
effectiveness.
DELIVERING MEASURED
PROFITABLE GROWTH
Through a sharp focus on value, growth
& capital management.
CONTINUOUS IMPROVEMENT
Be better tomorrow than we are today.
Create capacity while enhancing our
customer and employee experience.
Our Strategy
FBD
Delivering for all
our Stakeholders
Risks & Uncertainties Report
A) OVERVIEW
Risk taking is inherent in the provision of financial
services and FBD assumes a variety of risks in
undertaking its business activities. FBD defines risk as
any event that could impact the core earnings capacity
of the Group; increase earnings or cash-flow volatility;
reduce capital; threaten business reputation or viability;
and/or breach regulatory or legal obligations.
The Group has adopted an Enterprise Risk Management
approach to identifying, assessing and managing risks.
This approach is incorporated in the Risk Management
Framework which is approved by the Board and subject
to annual update and review. The key components of
the Risk Management Framework include Risk Appetite;
Risk Governance; Risk Process and People.
B) RISK MANAGEMENT
FRAMEWORK1
Risk Appetite
Risk appetite is a measure of the amount and type of
risks the Group is willing to accept or not accept over a
defined period of time in pursuit of its objectives. The
Group’s risk appetite seeks to encourage measured and
appropriate risk-taking to ensure that risks are aligned
to business strategy and objectives.
The risk appetite in the Group’s underwriting subsidiary
is driven by an over-arching desire to protect its
solvency at all times. Through the proactive
management of risk, it ensures that it does not take on
an individual risk or combination of risks that could
threaten its solvency. This ensures that it has and will
have in the future sufficient capital to pay its
policyholders and all other creditors in full as liabilities
fall due.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
18
1 ESRS 2 GOV-5 36a Description of scope, main features and components of risk management and internal control processes and systems in relation to
sustainability reporting - subject to limited assurance
Governance
Process
People
RISK MANAGEMENT FRAMEWORK
Risk Governance
The Board sets the business strategy and has ultimate
responsibility for the governance of all risk taking
activity in FBD. Risk is governed through business
standards, risk policies and Oversight Committees with
clear roles, responsibilities and delegated authorities.
The Group uses a ‘three lines of defence’ framework in
the delineation of accountabilities for risk governance:
•
Primary responsibility for risk management lies with
line management.
•
Line management is supported by the second line
Risk, Actuarial and Compliance functions who
provide objective challenge and oversight of first line
management of risks.
•
The third and final line of defence is the Internal
Audit function, which provides independent
assurance to the Audit Committee of the Board on
risk-taking activities.
Risk Process1
Identify and Measure
Risk, including emerging risk, is identified and assessed
through a combination of top-down and bottom-up risk
assessment processes. Top-down processes focus on
broad risk types and common risk drivers rather than
specific individual risk events, and adopt a forward-
looking view of perceived threats over the strategic
horizon. Bottom-up risk assessment processes are more
granular, focusing on risk events that have been
identified through specific qualitative or quantitative
measurement tools. Top-down and bottom-up views of
risk come together through a process of upward
reporting of, and management response to, identified
and emerging risks. This ensures that the view of risk
remains sensitive to emerging trends and common
themes. The Group measures risk on the basis of
economic capital and other bases (where appropriate)
to determine materiality, potential impact and
appropriate management. Risks are recorded on the
Group Risk Register.
Monitor and Report
We regularly monitor our risk exposures against risk
appetite, risk tolerances and risk limits and monitor the
effectiveness of controls in place to manage risk.
Reporting to the Executive and Board Risk Committees
is dynamic and includes material risks, emerging risks,
risk appetite monitoring, risk metrics, changes in risk
profile, risk mitigation programmes, reportable errors,
breaches of risk policies (if any) and results of
independent assessments performed by the Risk
function.
People
Risk Management is embedded in the Group through
leadership, governance, decision making and
competency. The Risk Management Framework
establishes the roles and responsibilities of risk
resources. A risk training programme is in place to
ensure all risk resources have the knowledge and
competency to perform their roles effectively.
In accordance with Group policy, business unit
management has primary responsibility for the effective
identification, management, monitoring and reporting of
risks. There is an annual review by the Executive Risk
Committee of all major risks and emerging risks, to
ensure all risks are identified and evaluated. Each risk is
assessed by considering the potential impact and the
probability of the event occurring. Impact assessments
are made against financial, operational, regulatory,
reputational and customer impact criteria.
Key Risks and Mitigants2
All individual risks recorded on the Group Risk Register
are assigned to key risk categories which are reviewed
regularly by the Executive and Board Risk Committees.
The Group's key risk categories and mitigants are
provided in the table below. Escalation parameters for
key risks that are outside of tolerance / appetite and a
‘three lines of defence’ system, complemented with
external reviews are in place. The Board is satisfied that
FBD maintains a robust and effective risk management
framework.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
19
1 ESRS 2 GOV-5 36b Description of risk assessment approach followed - subject to limited assurance
2 ESRS 2 GOV 5 36c Description of main risks identified and their mitigation strategies - subject to limited assurance
Capital Management Risk
The risk that the Group fails to maintain an adequate regulatory solvency position resulting in an inability to pay
policyholder and third party claims.
Key Mitigants
•
The Group has an Investment Committee, a Pricing & Underwriting Committee, a
Capital Management Forum, an Audit Committee, a Reserving Committee and Board
and Executive Risk Committees, all of which assist the Board in the identification and
management of exposures and capital.
•
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.
•
An experienced Actuarial team is in place with policies and procedures to ensure that
Technical Provisions are calculated in an appropriate manner and represent a best
estimate.
•
Technical Provisions are internally peer reviewed every quarter and subject to external
peer review every two years.
•
An approved Reinsurance Programme is in place.
•
The Group ensures that the capital position is considered as part of the strategic
planning process. The capital position is also considered in the strategic decision making
process.
•
On at least an annual basis, thresholds for Solvency Capital Requirements (SCR) Ratio,
developed as part of the ORSA/Own Solvency Needs Assessment process, are
approved by the Board as part of the Risk Appetite Statements in the Risk Appetite
Framework.
•
The Group also devotes considerable resources to managing its relationships with the
providers of capital within the capital markets, for example, existing and potential
shareholders, financial institutions, stockbrokers and corporate finance houses.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
20
Underwriting Risk
This is the risk that underwritten business is less profitable than planned due to insufficient pricing and setting of
claims case reserves as a result of higher than expected claims frequency, higher average cost per claim and
catastrophic claims.
Key Mitigants
The Group manages this risk through its underwriting strategy and its reinsurance
arrangements.
Underwriting Strategy
•
The Group’s underwriting strategy is incorporated in the overall corporate strategy
which is approved by the Board of Directors and includes the employment of
appropriately qualified underwriting personnel; the targeting of certain types of
business that conform with the Group’s risk appetite and reinsurance treaties; ongoing
review of the Group’s Pricing Policy using up-to-date statistical analysis and claims
experience; and the surveying of risks carried out by experienced personnel. All risks
underwritten are within the Group’s underwriting policies.
•
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.
•
The Group seeks to identify opportunities to promote a transition to a low carbon
environment and take into consideration climate change and ESG considerations in the
product development process.
•
While all of the Group’s underwriting business is conducted in Ireland, with a significant
focus on the farm sector, it is spread over a wide geographical area with no
concentration in any one county or region.
Reserving
•
The Group uses statistical and actuarial methods to calculate the quantum of claims
provisions and uses independent actuaries to review its liabilities to ensure that the
carrying amount of the liabilities is adequate. An uncertainty analysis is carried out
which inputs into the setting of the risk adjustment under IFRS17. The Reserving
Committee assists the Board in its review of the adequacy of the Group’s claims
provisions.
•
Case reserve estimates are subject to robust controls including system controls
preventing claim handlers from increasing reserves above their reserve limits without
supervisor approval and secondary review and challenge of case reserve estimates.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
21
Market Risk
The risk that the value of the Group’s investments may fluctuate as a result of changes in market prices, changes
in market interest rates or changes in the foreign exchange rates of the currency in which the investments are
denominated.
Key Mitigants
•
The extent of the exposure to market risk is managed by the formulation of, and
adherence to, an Investment Policy incorporating clearly defined investment limits and
rules, as approved annually by the Board of Directors and employment of appropriately
qualified and experienced personnel and external investment management specialists to
manage the Group’s investment portfolio. The overriding philosophy of the Investment
Policy is to protect and safeguard the Group’s assets and to ensure its capacity to
underwrite is not put at risk.
•
The Group will only invest in assets the risks of which can be properly identified,
measured, monitored, managed and controlled in line with the Prudent Person Principle
under Solvency II.
•
The Group has an Asset Liability Matching policy whereby its liabilities are backed by
fixed interest assets of similar currency and duration.
•
The Group monitors its allocation to the various asset classes and has a long term
Strategic Asset Allocation target.
Credit & Concentration Risk
This is the risk of loss in the value of financial assets due to counterparties failing to meet all or part of their
obligations and/or over allocation to a single entity that may default or fall in value resulting in adverse financial
impact.
Key Mitigants
•
Credit and concentration risk for investments is managed by the formulation of, and
adherence to, an Investment Policy that is approved annually by the Board of Directors.
The Investment Policy incorporates clearly defined investment limits and rules and
ensures that there is an optimum spread and duration of investments.
•
The Group only places reinsurance with companies that it believes are strong financially
and operationally. Credit exposures to these companies are closely monitored by senior
management. All of the Group’s current reinsurers have either a credit rating of A- or
better from a rating Organisation such as Standard and Poor's or AM Best. The
reinsurance programme structure ensures that there is no significant concentration of
risk.
•
All of the Group’s fixed term deposits are with financial institutions which have a
minimum A- rating.
Liquidity Risk
This is the risk of insufficient liquidity to pay claims and other liabilities due to inappropriate monitoring and
management of liquidity levels or inadequate Asset Liability Management.
Key Mitigants
•
The Group manages liquidity risk by monitoring forecast and actual cash flows and
ensuring that the maturity profile of its financial assets is well matched to the maturity
profile of its liabilities and maintaining a minimum amount available on term deposit at
all times.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
22
Strategy Risk
The risk that the strategy adopted by the Board is incorrect or not implemented appropriately resulting in sub-
optimal performance and impact on profitability.
Key Mitigants
•
The Group has a strategic planning cycle which commences with a fundamental review
of strategy at least every 5 years (normally every 3 years). Further supporting this is an
annual review of the strategy by the Board to determine the continuing relevance. To
ensure the strategy is implemented effectively, the Group engages in a robust business
planning and review process that results in an annual plan including key initiatives and
budget.
•
A Strategic Risk Policy is in place.
•
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.
Reputational Risk
The risk of reputational or brand damage arising from inadequate or failed processes and systems or badly
executed strategy/poorly executed communication.
Key Mitigants
•
The Group’s Board and senior management set the ethical and behavioural tone for the
Group. In support of this a number of Group policies are utilised which influence
employee behaviour, including a Reputational Risk Policy, Fitness & Probity Policy, an
Anti-Fraud Policy, Code of Conduct Policy, Conflicts of Interest Policy and a Speak Up
Policy.
•
The Group has established a Corporate Governance Framework which is in full
compliance with the requirements of the Central Bank of Ireland’s Corporate
Governance Requirements for Insurance Undertakings and the UK Corporate
Governance Code 2018 Irish Annex.
•
Reputation, integrity and character of persons are key considerations in establishing
business arrangements and throughout the life of the relationship.
•
Independent customer satisfaction research is undertaken and customer complaints are
dealt with efficiently to ensure the quality of products and services offered to
customers.
•
The Group’s claims philosophy is to be “Fair to the customer and fair to FBD”. This
philosophy guides the Claims function in its handling of all customer claims.
•
The Group has aligned its Environmental, Social and Governance (ESG) initiatives to
having a meaningful impact by supporting our customers and businesses as they
become more climate resilient.
•
The Group has a Sustainability Committee that reports into the Board through the CEO
and the Group has a company wide ESG strategy which they will implement over the
coming years. The UN Principles for Sustainable Insurance will continue to guide our
sustainability related goals, delivered by the business through the clearly defined pillars
of our ESG strategy.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
23
Operational Risk
Operational Risk is the risk of loss resulting from inadequate or failed internal processes, people and systems or
from external events. FBD’s material operational risks include people risk, business process risk, change
management risk, information technology risk, legal and regulatory risk and business continuity risk and
outsourcing.
Key Mitigants
Risk Management Framework
•
Operational risk is governed through business standards covering key processes. This is
complemented by our Risk Management Framework that defines the structure in place
to identify, measure, manage, monitor and report on operational risks and mitigating
controls with defined risk tolerances and Key Risk Indicators (KRIs).
•
There is a ‘three lines of defence’ system in place, with line management being primarily
responsible for risk management, with extensive second and third line challenge over
the operational control environment.
•
The ORSA provides a scenario based approach to determine the appropriate level of
capital to be held in respect of operational risks.
Information Technology Controls
•
Sound information technology controls are in place across the Group, including a
dedicated IT security team with overall responsibility for managing information
technology security standards, which together with on-going employee training and
regular cyber-risk reviews are used to mitigate information technology risks.
Business Continuity Plans
•
The Group has taken significant steps to minimise the impact of Business Interruption
that could result from a major external event. Formal Business Continuity and Disaster
Recovery plans are in place for both workspace recovery and retrieval of
communications, IT systems and data. If a major event occurs, these plans will enable
the Group to either move the affected operations amongst its various sites or invoke
remote working from home. The Group carries out two minor and one major Business
Continuity/Disaster Recovery exercises per year.
•
An Operational Resilience Framework has been developed incorporating important
business services.
Personnel
•
The success of the Group depends upon its ability to retain, attract, motivate and
develop talent. The Group are committed to providing employees at all levels with
appropriate training, development and education relevant to their role. Training needs
are identified through performance management and operational planning. A Talent
Management and Succession Plan is in place and reviewed regularly. This ensures that
the Group develops and retains key talent and is best placed to replace key roles in a
seamless manner should the need arise.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
24
Reinsurance Risk
The risk that the Reinsurance programme will not be effective in restricting loss from claims due to an
inappropriate structure being put in place caused by failed decision-making processes or from events occurring
outside of standard modelling processes resulting in a material impact on the solvency of the Group or failure to
assist the Group in reducing fluctuations in financial results.
Key Mitigants
•
The Group purchases reinsurance protection to limit its exposure to single claims and
the aggregation of claims from catastrophic events. The Group’s reinsurance programme
is approved by the Board on an annual basis. FBD has purchased a reinsurance
programme which has been developed to meet the local domestic risk profile and
tailored to FBD’s risk appetite. The programme protects Motor, Liability, Property and
other classes against both individual large losses and events.
Consumer Risk
The risk that the Group does not treat consumers fairly resulting in unsatisfactory consumer outcomes.
Key Mitigants
•
The Consumer Risk Framework is a subset of the Risk Management Framework and
utilises the same structures and processes in place to identify, assess, monitor, manage
and report risk. The objective of the Consumer Risk Framework is to provide a
systematic, effective and efficient way for managing consumer risk in the Group and to
ensure it is consistent with the overall business strategy and the risk appetite of the
Group.
•
The Group has a Consumer and Culture Committee that facilitates review and challenge
on consumer and culture risk information received from the business areas. This includes
but is not limited to consumer risks, consumer risk appetite, monitoring key consumer
risk metrics and trends.
•
The Group has a 2025-2029 Strategy in place which notes that it is the Group’s
ambition to be a customer-led organisation, delivering quality products and levels of
service to our customers.
•
In support of this Strategy a number of Group policies are utilised which mitigates
consumer risk, including a Product Oversight and Governance Policy, Code of Conduct
Policy, Vulnerable Customer Policy and Data Protection Policy.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
25
Climate Risk
The risk of detriment to the Group due to climate change conditions(physical), disruption from adjustment to low
carbon economy (transitional) and new potential liabilities arising from not considering or inappropriately
responding to climate change (liability) resulting in adverse financial, regulatory or reputational impact.
Key Mitigants
•
The management of climate risk is strategically important to FBD, 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.
•
The Group selected the Central Banks and Supervisors Network for Greening the
Financial System (NGFS) framework as the most appropriate framework from which to
choose a baseline scenario. Following due consideration of each scenario under the
NGFS scenario framework, the current climate change path and progress made, and the
climate change outlook, the Group selected the Nationally Determined Contributions
(NDC) scenario as its baseline scenario.
•
In addition to the NDC scenario, analysis has been performed on two additional
scenarios (Net Zero 2050 and Delayed Transition) and implications between scenarios
have been considered. The appropriateness of the baseline scenario will be reviewed
annually.
•
A Double Materiality Assessment (DMA) has been performed and has identified key
climate-related risks and opportunities (ROs). These ROs have been qualitatively
assessed in the context of the selected climate change scenarios (i.e., NDC, Net Zero
2050, Delayed Transition) and over the Group’s defined time horizons.
•
The Group will perform periodic assessments to assess the materiality of climate
change exposures at a Group level.
•
Climate risk has been considered as part of capital planning during the ORSA process.
•
The appropriateness of the risks and controls related to Climate Risk, including the
potential risks, time horizon and double materiality impact are assessed on a quarterly
basis via the Risk and Control Self-Assessment (RCSA) process.
•
The Group has a Sustainability Committee that reports to the Board through the CEO
and the Group has agreed a company wide ESG strategy which they will implement
over the coming years.
•
The Group has followed the guidance issued by the Central Bank of Ireland (CBI)
“Guidance for (Re)Insurance Undertakings on Climate Change Risk”.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
26
C. Inflation and Geopolitical Risk
The worst of the inflation shock appears to have passed,
albeit with inflation rates expected to settle above their
pre-pandemic level, with the global economy proving
unusually resilient throughout the disinflationary
process. Central banks have now switched their focus to
a monetary easing process although the US has lagged
in this regard as strong growth has been accompanied
by more persistent inflation. In Ireland, headline inflation
is forecast to average 1.8% over the next three years
with domestically driven services inflation being the
main contributor. Most measures of underlying inflation
suggest that Eurozone inflation will settle at around the
Governing Council’s 2% medium-term target on a
sustained basis. Domestic Eurozone inflation has edged
down but remains high, mostly because wages and
prices in certain sectors are still adjusting to the past
inflation surge with a substantial delay. The ECB cut
interest rates four times in 2024 and is projected to
make another four cuts in 2025 for a terminal rate of 2%,
although weakening growth prospects suggest this
could go lower. The Group is exposed to interest rate
fluctuations through the bond portfolios although the
impact of any unexpected rises may be offset by the
unwind of the accumulated losses from the 2022 shock
as these bonds approach maturity.
The high level of inflation during 2024 has 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. During 2024 there
was significant inflation in relation to property claims.
This was primarily driven by an increase in the
proportion of higher value subsidence and flood claims.
Following constant monthly increases post Covid-19,
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 with reporting and analysis in
monthly business review meetings and regular reporting
to senior management.
Geopolitical risks and market impacts have slightly
increased. 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 bi-lateral 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 multi-nationals. 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.
D. Emerging Risks
An emerging risk is a risk which may or may not develop,
is difficult to quantify, may have a high loss potential
and is marked by a high degree of uncertainty. We have
a defined process in place for the identification of and
response to emerging risks, which is informed through
the use of subject matter experts, workshops, Risk and
Control Self-Assessments and consulting a range of
external resources.
Key emerging risks are monitored regularly by the Board
and Risk Committees to assess whether they might
become significant for the business and require
specified action to be taken.
Key Emerging Risks include:
•
An increased frequency of cyber attacks, and the
impact that these factors may have on society’s
future insurance needs and claims types and
frequencies.
•
Accelerated adoption and advances in the use and
misuse of artificial intelligence.
•
Restricted data sharing due to retention of driver
analytics by manufacturers enabling them to offer
insurance as part of the vehicle price.
•
There is a risk of mass disease which may cross
species resulting in a negative impact on the
economy and FBD's agricultural customers.
•
Technological advances changing the shape of the
insurance industry and competitive environment.
•
Changes to motor vehicle ownership where there is
a significant increase in fleet owners/shared
ownership in urban areas.
•
Global deterioration in economic conditions and
particularly in Ireland may lead to a reduction in
revenue and profits.
•
Global socio-political uncertainty that may cause an
adverse impact on profitability.
•
Evolving regulatory and legislative landscape. We
continuously monitor developments at both a local
and EU level to ensure continued compliance with
legislative and regulatory requirements.
•
Due to greater numbers of electric cars, there is an
increased use in lithium-ion rechargeable batteries
which can present a higher risk of fire.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
27
Governance
Board of Directors
Biographical details of the Directors in office on the date of this Report are as follows:
LIAM
HERLIHY
Group Chair
Date of Appointment:
1 September 2015
Nationality: Irish
Committee Membership:
• Risk Committee
• Nomination and Governance Committee
(Chair)
• Remuneration Committee
Skills and experience:
Liam Herlihy is a farmer and was
appointed Chair in May 2017. He was
appointed Chair of Teagasc Authority in
September 2018 and was, until May of
2015, Group Chair of Glanbia plc, a leading
Irish based nutrition and ingredients
group, having served in that role for seven
years during which he presided over a
period of significant structural change and
unprecedented growth for Glanbia plc.
Mr Herlihy completed the Institute of
Directors Development Programme and
holds a certificate of merit in Corporate
Governance from University College
Dublin. He brings to the Board a wealth of
commercial experience and some deep
insights into the farming and general
agricultural industries in Ireland which,
together, comprise the Group's core
customer base.
External Directorships:
• Teagasc the Agriculture and Food
Development Authority
• Knockskeagh Farms Limited
TOMÁS Ó
MIDHEACH
Group Chief Executive Officer
Date of Appointment:
4 January 2021
Nationality: Irish
Committee Membership:
• None
Skills and experience:
Tomás Ó Midheach has over 30 years
experience in the financial services
industry spanning many diverse areas
including finance, data, customer analytics,
direct channels and digital. He spent 11
years with Citibank in the UK, Spain and
Dublin, where he held several senior
positions in Finance, ultimately assuming
the position of CFO at Citibank Ireland. Mr
Ó Midheach joined AIB in June 2006 and
held a number of senior executive
positions including Head of Direct
Channels and Analytics, Chief Digital
Officer, and Chief Operating Officer. Prior
to joining FBD, Mr Ó Midheach held the
position of Deputy CEO and was an
Executive Board Member of AIB.
External Directorships:
• Insurance Ireland (Member Association)
Company Limited by Guarantee
KATE
TOBIN
Group Chief Financial Officer
Date of Appointment:
1 January 2024
Nationality:
Irish
Committee Membership:
• None
Skills and experience:
Kate Tobin is a Fellow of the Society of
Actuaries in Ireland, holds a Masters in
Business Administration and is an
experienced insurance executive. She
joined FBD from Zurich Insurance where
she worked between 2007 and 2017,
holding various roles at both local and
Group levels, including Chief Underwriting
Officer for the Irish General Insurance
business. Prior to her appointment as
Group Chief Financial Officer in 2024, Ms
Tobin most recently held the position of
Chief Underwriting Officer of FBD, a
position held since 2018.
External Directorships:
• Johnstown Sportsfield Company Limited
By Guarantee
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
28
SYLVIA
CRONIN
Senior Independent Non-Executive
Director
Date of Appointment:
28 November 2019
Nationality:
Irish
Committee Membership:
• Risk Committee
• Nomination and Governance Committee
• Remuneration Committee
Skills and experience:
Sylvia Cronin was the Director of Insurance
Supervision in the Central Bank of Ireland
until October 2019 and was a Member of
the European Insurance and Occupational
Pensions Authority (“EIOPA”) Board of
Supervisors. Before joining the Central
Bank of Ireland, Ms Cronin spent the
majority of her career working in the
insurance industry, most recently as Chief
Executive of Augura Life Ireland Ltd.
Previously, Ms Cronin was the Chief
Executive of MGM International Assurance
Ltd. and spent several years with the AXA
Group where she was Head of Business
Development, Services and Marketing in
Ireland. Ms Cronin holds a Masters in
Business Administration, was admitted as
a Chartered Director to the Institute of
Directors in London and is a Centre for
Effective Dispute Resolution Certified
Mediator. Ms Cronin is a Chair and an
Independent Non-Executive Director on a
number of Financial Services company
boards including Mercer, Mediolanum,
Canada Life Europe, and AIB Life.
External Directorships:
• Canada Life Group:
– Canada Life Assurance Europe plc
– Canada Life International Assurance
(Ireland) DAC
– Canada Life UK Holdings Limited
– Canada Life Limited
– Canada Life Irish Holding Company
Limited
– Saol Assurance DAC (trading as AIB
Life)
– Saol Assurance Holdings Limited
• Mercer Global Investments Europe
Limited
• Mediolanum International Life DAC
JIM
BERGIN
Independent Non-Executive Director
Date of Appointment:
19 November 2024
Nationality:
Irish
Committee Membership:
• Nomination and Governance Committee
• Remuneration Committee
Skills and experience:
Jim Bergin was formerly the Chief
Executive Officer and Executive Director
of Tirlán Co-Operative Society Limited
(until July 2024). Mr Bergin spent a
considerable part of his career in Glanbia
plc in a number of senior management
positions.
Mr Bergin was former Chair of the Irish
Dairy Industry Association and is currently
chair of the Teagasc 'Better Farming for
Water' stakeholder steering committee. Mr
Bergin is also an Independent Non-
Executive Director of Enable Ireland and
Vice Chair of the governing body of
Southeast Technological University.
External Directorships:
• Dairy Industry Ireland Limited
• Enable Ireland Disability Services
• Buttercup Consulting Limited
MARY
BRENNAN
Independent Non-Executive Director
Date of Appointment:
31 August 2016
Nationality:
Irish
Committee Membership:
• Audit Committee
• Risk Committee (Chair)
Skills and experience:
Mary Brennan is a Chartered Director,
Certified Investment Fund Director and a
Fellow of Chartered Accountants Ireland.
In a career spanning over 30 years, Ms
Brennan has worked internationally in
audit in KPMG and in a number of publicly
listed companies, including Elan plc and
Occidental Petroleum Corp. She is a highly
experienced Independent Non-Executive
Director and currently holds the position
of Chair of the Board, Chair of the Audit
Committee, Chair of the Risk Committee
and Chair of the Remuneration Committee
in her portfolio of directorships. Ms
Brennan previously served on the Boards
of a number of a number of companies
including BNP Paribas Ireland, Atradius
Reinsurance DAC, Macquarie Capital
Ireland, the Social Finance Foundation and
Microfinance Ireland.
External Directorships:
• MMS Multi Euro Services DAC
• MMS Multi Market Services Ireland DAC
• Inchiaro Life DAC
• ENI Insurance DAC
• HRTEU Limited
• Western Union Payment Services Ireland
Limited
• BCP Asset Management DAC
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
29
OLIVE
GAUGHAN
Independent Non-Executive Director
Date of Appointment:
22 May 2024
Nationality:
Irish
Committee Membership:
• Audit Committee
• Risk Committee
Skills and experience:
Olive Gaughan is a Fellow of the Society
of Actuaries in Ireland. She is a highly
experienced Actuary. Ms Gaughan has
held several roles in the commercial sector
with over 30 years, most recently as
Director of Actuarial Services at Mazars in
Ireland. Prior to that she was Appointed
Actuary and Head of Actuarial Function at
Prudential International Assurance. She is
a member of the Pensions Council and is a
Non-Executive Director at Canada Life
Reinsurance Ireland, Scottish Friendly
Assurance Society Limited, and Scottish
Friendly Asset Managers Limited. She
serves on the Board of Réalta, a
Waterford-based charity focused on arts
and health.
External Directorships:
• Scottish Friendly Assurance Society
Limited
• Scottish Friendly Asset Managers
Limited
• Canada Life Re Ireland Designated
Activity Company
• Arts And Health Ireland Company
Limited By Guarantee T/A Réalta
FRANCIE
GORMAN
Independent Non-Executive Director
Date of Appointment:
9 September 2024
Nationality:
Irish
Committee Membership:
• None
Skills and experience:
Francie Gorman is a beef and sheep farmer
from Ballinakill in Co Laois. He is the 17th
President of the Irish Farmers' Association
(IFA) and commenced his four-year term in
January 2024. Mr Gorman previously
served as IFA Regional Chair for South
Leinster, Chair of IFA Laois and
represented IFA Laois on the IFA National
Farm Business Committee.
Mr Gorman is a Non-Executive Director of
Bord Bia which is an Irish semi state
Agency whose remit is to market and
promote Ireland's food, drink and
horticulture industry in Ireland and abroad.
He also sits on the board of The
Agricultural Trust.
Mr Gorman is a Vice President of COPA
(Committee of Professional Agricultural
Organisations) and represents Irish
farmers at EU level on COPA, which is the
official umbrella representative body for
European farmers.
External Directorships:
• IFA Telecom Limited
• Feirmeoiri Aontuithe Na H-Eireann
Iontaobaithe Cuideachta Faoi Theorainn
Ráthaíochta
• The Agricultural Trust
PATRICK
MURPHY
Non-Executive Director
Date of Appointment:
1 September 2023
Nationality:
Irish
Committee Membership:
• None
Skills and experience:
Patrick Murphy is from Kilkenny where he
owns and has been managing Smithstown
Dairy Farm, Kilkenny for the past forty-
eight years. Mr Murphy has extensive
knowledge of the global food and
beverage industry and has vast experience
in the governance and strategic
management of global and Irish
businesses.
Mr Murphy is a highly experienced Non-
Executive Director and currently holds the
position of Chair of Farmer Business
Developments plc. Mr Murphy previously
served on the Board of Irish Farm
Accounts Co-Operative Society Limited
(IFAC) and was Non-Executive Director of
Glanbia plc, and Vice Chair of Tirlán Co-
operative Society Limited and was Vice
President of Macra Na Feirme.
External Directorships:
• Farmnom Limited
• Farmer Business Developments plc
• Farmer Business Developments Assets
Limited
• Farmer Business Developments
Investments Limited
• Bulberry Properties Limited
• Bulberry Holdings Limited
• Hawridge Properties Limited
• PLL Property & Leisure Limited
• Pat and Sarah Murphy Limited
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
30
RICHARD
PIKE
Independent Non-Executive Director
Date of Appointment:
18 September 2019
Nationality:
Irish
Committee Membership:
• Risk Committee
• Nomination and Governance Committee
• Remuneration Committee (Chair)
Skills and experience:
Richard Pike has extensive experience of
working with financial institutions
throughout the world, assisting companies
in managing strategic and enterprise risk
more efficiently while addressing local
regulatory guidelines and standards. Mr
Pike is currently Chair of Citadel Securities
GCS (Ireland) Ltd and Citadel Securities
GCS (Europe) Ltd, and Independent Non-
Executive Director of Tuath House
Association CLG and Cumberland Building
Society. Prior to this, Mr Pike has worked
in various senior banking, insurance, credit
and market risk roles at Wolters Kluwer
Financial Services, ABN AMRO, Bain, JP
Morgan and Permanent TSB Bank. Mr Pike
lectures on Risk Management and
Governance at the Institute of Banking
and the Smurfit Business School and was a
contributing author to two books on risk
management. Mr Pike has also received
the designation of ‘Certified Bank Director’
by the Institute of Banking.
External Directorships:
• Citadel Securities GCS (Ireland) Limited
• Citadel Securities GCS (Europe) Limited
• Tuath Housing Association CLG
• The Cumberland Building Society
JEAN
SHARP
Independent Non-Executive Director
Date of Appointment:
16 August 2021
Nationality:
Irish
Committee Membership:
• Audit Committee (Chair)
• Nomination and Governance Committee
Skills and experience:
Jean Sharp is a Fellow of Chartered
Accountants Ireland, and is an experienced
Financial Services executive. Until 2019,
she was Chief Taxation Officer at Aviva
and its predecessor companies, a role she
had held since 1998. Ms Sharp is a former
partner in EY, the Big Four accounting firm.
She is an Independent Non-Executive
Director of Personal Assets Trust plc,
which is listed on the London Stock
Exchange and is a constituent of the FTSE
250 index. She also Chairs its Audit
Committee. Ms Sharp is also an
Independent Non-Executive Director and
Audit Committee Chair at Flood Re
Limited.
External Directorships:
• Flood Re Limited
• Personal Assets Trust plc
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
31
Tribute to David O'Connor and John O'Dwyer
DAVID
O’CONNOR
Independent Non-Executive Director
It is with great sadness that we
acknowledge the passing of our esteemed
Board member, David O’Connor. David was
a highly respected and valued member of
our Board, serving with distinction over
the past eight years. As Chair of FBD
Insurance plc. he played a pivotal role in
guiding the company, doing so with
wisdom and professionalism, drawing
particularly on his deep actuarial expertise.
A Fellow of both the Institute of Actuaries
and the Society of Actuaries in Ireland,
David dedicated his career to the
Insurance industry, holding senior
leadership roles in New Ireland Assurance,
Allianz Ireland and Willis Towers Watson.
His vast knowledge, strategic insight and
unwavering commitment made an indelible
impact to FBD.
David will be remembered as a man of
great integrity, a true gentleman, and a
brilliant raconteur. He was deeply
respected by his colleagues and is greatly
missed by all those who had the privilege
of working alongside him.
Ar dheis Dé go raibh a anam
JOHN
O'DWYER
Independent Non-Executive Director
We were deeply saddened by the passing
of John O’Dwyer, Independent Non
Executive Director of FBD Holdings plc
and FBD Insurance plc since August 2021
and Senior Independent Director since
August 2024. John was a highly regarded
member of our Board and everyone who
had the honour of working with him deeply
feels his loss John brought a wealth of
experience and insight to FBD, having held
several senior leadership roles at BUPA,
Friends First and Interamerican group
(Greece). Prior to joining the Board of FBD
he held the role of CEO of VHI. His
Industry knowledge and strategic vision
were invaluable to us at FBD.
John was a true gentleman, who led with
kindness, integrity and quiet
determination. He was an inspirational
leader, a mentor to many and someone
who always brought the best out in
people. He will be remembered for his
professionalism, leadership and generosity
of spirit.
Ar dheis Dé go raibh a anam
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
32
Corporate Information
Registered Office and Head Office
Bankers
FBD House
Allied Irish Banks plc
Bluebell
Barclays Bank plc
Dublin 12
Close Brothers International
D12 Y0HE
Deutsche Bank AG
Ireland
KBC Bank NV
Stockbrokers
Solicitors
Davy Stockbrokers
Dillon Eustace
49 Dawson Street
33 Sir John Rogerson’s Quay
Dublin 2
Dublin 2
D02 PY05
D02 XK09
Ireland
Ireland
Independent Auditors
Registrar
PricewaterhouseCoopers (PwC)
Computershare Investor Services (Ireland) Limited
Chartered Accountants and Statutory Audit Firm
3100 Lake Drive
One Spencer Dock
Citywest Business Campus
North Wall Quay
Dublin 24
Dublin 1
D24 AK82
D01 X9R7
Ireland
Ireland
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
33
Report of the Directors
The Directors present their report and the audited financial statements for the financial year 2024.
Principal Activities
FBD is one of Ireland’s largest property and casualty insurers, looking after the insurance needs of
farmers, private individuals and business owners through its principal subsidiary, FBD Insurance plc.
The Group also has a regulated intermediary offering general insurance, life insurance, investments and
pensions. The Company is a holding company incorporated in Ireland.
FBD Holdings plc is subject to the UK Corporate Governance Code 2018 (the "Code") and the Irish
Corporate Governance Annex (the "Irish Annex"). FBD Insurance plc is subject to the Central Bank of
Ireland's Corporate Governance Requirements for Insurance Undertakings 2015 and is required to
comply with the additional requirements for High Impact Designated Insurance Undertakings.
At the Annual General Meeting held on 9 May 2024 a resolution was passed by shareholders for FBD
Holdings plc to apply for the cancellation of the listing of the ordinary shares of €0.60 each in the
capital of the Company from the premium segment of the Official List of the Financial Conduct
Authority and to remove such ordinary shares from trading on the London Stock Exchange plc's Main
Market for listed securities. On 10 June 2024, the ordinary shares were removed from the Official List
and were cancelled from admission to trading on London Stock Exchange. FBD Holdings plc remains
listed on the Main Market of Euronext Dublin. Following the introduction by Euroxnext Dublin of the
Irish Corporate Governance Code 2024, FBD Holdings plc will report under this Code for year ending
31 December 2025 and for future years.
Business Review
The review of the performance of the Group, including an analysis of financial information and the
outlook for its future development, is contained in the Chairman's Statement on pages 7 to 9 and in
the Group Chief Executive’s Review of Operations on pages 10 to 14. Information in respect of events
since the financial year end and a review of the key performance indicators are also included in these
sections. The key performance indicators include insurance revenue, profit before tax, earnings per
share as well as alternative performance measures (see pages 282 to 288) that include 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.
Results
The results for the year are shown in the Consolidated Income Statement on page 198.
Financial Instruments
The Group makes routine use of financial instruments in its activities. The use of financial instruments
is material to an assessment of the financial statements. Detail on the Group’s financial risk
management objectives and policies are included in the Risks and Uncertainties Report on pages 18 to
27. The Group's exposure to liquidity, market, foreign currency, credit and concentration risk are
included in note 37 of the financial statements.
Dividends
Please refer to note 31 for further details.
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.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
34
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.
Principal Risk and Uncertainties
A description of the principal risks and uncertainties facing the Group are set out in the Risks and
Uncertainties Report on pages 18 to 27.
Subsidiaries
The Company’s principal subsidiaries, as at 31 December 2024, are listed in note 32.
Directors
The present Directors of the Company, together with a biography on each, are set out on pages 28 to
31. The Board has decided that all Directors continuing in office will submit themselves for re-election
at each Annual General Meeting (AGM). As disclosed in the 2023 Annual Report, Mr Liam Herlihy will
have reached nine years eight months on the Board in May 2025 and will not go forward for re-
election at the 2025 AGM.
The Directors who served at any time during 2024 were as follows:
Liam Herlihy
Chair
Tomás Ó Midheach
Executive Director and Group Chief Executive Officer
Kate Tobin
Executive Director and Group Chief Financial Officer (Appointed 1 January 2024)
Sylvia Cronin
Senior Independent Non-Executive Director
Jim Bergin
Independent Non-Executive Director (Appointed 19 November 2024)
Mary Brennan
Independent Non-Executive Director
Tim Cullinan
Independent Non-Executive Director (Resigned 09 September 2024)
Olive Gaughan
Independent Non-Executive Director (Appointed 22 May 2024)
Francie Gorman
Independent Non-Executive Director (Appointed 09 September 2024)
Patrick Murphy
Non-Executive Director
David O’Connor
Independent Non-Executive Director (Passed away 12 April 2024)
John O'Dwyer
Independent Non-Executive Director (Passed away 24 November 2024)
Richard Pike
Independent Non-Executive Director
Jean Sharp
Independent Non-Executive Director
Annual General Meeting
The Annual General Meeting (AGM) is scheduled to be held on Thursday, 8 May 2025. The notice of
the AGM of the Company will be sent to shareholders giving 21 clear days’ notice.
Articles of Association
The Company’s Articles of Association may only be amended by way of a special resolution approved
by the shareholders. They were last amended, effective as of 12 May 2021, by way of a special
resolution passed at the Annual General Meeting held on that date.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
35
Directors’ and Company Secretary’s interests
The interests of the Directors and Company Secretary (together with their respective family interests)
in the share capital of the Company, at 31 December 2024 (or date of departure, if earlier) and 1
January 2024 (or date of appointment, if later) were as follows:
Beneficial
Number of ordinary shares
of €0.60 each
31 December
2024
1 January
2024
Liam Herlihy
8,000
8,000
Tomás Ó Midheach
62,900
21,337
Kate Tobin 1
33,658
25,406
Sylvia Cronin
—
—
Jim Bergin2
—
—
Mary Brennan
—
—
Tim Cullinan 3
—
—
Olive Gaughan 4
—
—
Francie Gorman 5
—
—
Patrick Murphy
—
—
David O’Connor6
1,500
1,500
John O'Dwyer 7
—
—
Richard Pike
7,200
7,200
Jean Sharp
—
—
Company Secretary
Nadine Conlon
—
—
There has been no change in the interests of the Directors and Company Secretary (together with
their respective family interests) in the share capital of the Company from 31 December 2024 up to
the date of this report.
The interests of the Directors and the Company Secretary in conditional awards over the share capital
of the Company under the shareholder approved Performance Share Plans are detailed in the Report
on Directors’ Remuneration on pages 74 to 76.
European Communities (Takeover Bids (Directive 2004/25/EC))
Regulations 2006
For the purposes of Regulation 21 of the European Communities (Takeover Bids (Directive 2004/25/
EC)) Regulations 2006, the information on the Board of Directors on pages 28 to 31, the Performance
Share Plans in note 35 and the Report on Directors’ Remuneration on pages 74 to 76 are deemed to be
incorporated in this part of the Report of the Directors.
On an annual basis the Directors seek shareholder approval for certain powers relating to the
Company’s shares. Pursuant to shareholder resolutions passed at the Annual General Meeting held on
9 May 2024, the Directors have the authority to allot shares up to an aggregate nominal value of
€7,037,072 representing approximately 33% of the issued ordinary share capital (excluding treasury
shares) as at 27 March 2024.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
36
1 Date of appointment of Kate Tobin 1 January 2024
2 Date of appointment of Jim Bergin 19 November 2024
3 Date of resignation of Tim Cullinan 9 September 2024
4 Date of appointment of Olive Gaughan 22 May 2024
5 Date of appointment of Francie Gorman 9 September 2024
6 Date of death of David O'Connor 12 April 2024
7 Date of death of John O'Dwyer 24 November 2024
The Directors have authority to issue shares for cash other than strictly pro-rata to existing
shareholdings in certain circumstances as approved at the AGM held on 9 May 2024. This authority is
limited to the allotment of equity securities in connection with (i) specific circumstances relating to
rights issues; (ii) the allotment of shares not exceeding in aggregate 5% of the nominal value of the
Company’s issued share capital; (iii) the allotment of equity securities pursuant to the Company's
employee share schemes; and/or (iv) for the purpose of financing (or refinancing) an acquisition or
other capital investment of a kind contemplated by the UK Pre-emption Group not exceeding in
aggregate 5% of the nominal value of the Company’s issued ordinary share capita (excluding treasury
shares). This authority expires on 9 August 2025 unless renewed and resolutions to that effect are
being proposed at the AGM to be held on 8 May 2025.
The Directors also have authority to make market purchases of the Company’s ordinary shares up to
10% of the aggregate nominal value of the Company’s issued share capital with voting rights. These
authorities are due to expire on the earlier of the date of the next Annual General Meeting of the
Company or 9 August 2025. These authorities are sought annually at the AGM.
Substantial Shareholdings
As at 31 December 2024 the Company has been notified of the following interests of 3% or more in its
share capital:
Ordinary shares of €0.60 each
No.
% of Class
% of Total Voting
Rights
Farmer Business Developments Plc
8,531,948
23.77%
20.93%
FBD Trust CLG ('FBD Trust')
5,000,435
13.93%
12.27%
Sretaw Private Equity Unlimited Company
4,099,671
11.42%
10.06%
M & G Investment Management Ltd.
1,876,620
5.23%
4.60%
Preference Share Capital
14% Non-cumulative preference shares of
€0.60 each
No.
% of Class
% of Total Voting
Rights
Farmer Business Developments plc
1,340,000
100%
3.29%
8% Non-cumulative preference shares of
€0.60 each
No.
% of Class
% of Total Voting
Rights
FBD Trust
2,062,000
58.38%
5.06%
Farmer Business Developments plc
1,470,292
41.62%
3.61%
As at 3 March 2025, FBD has not been notified of any changes in substantial shareholdings.
Share Capital
The Group had four classes of shares in issue at the end of the year. Outlined in the table below are
the voting classes and the percentage of the total issued share capital with voting rights represented
by each are as follows:
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
37
Voting shares
Number in issue
% of Total
Ordinary shares of €0.60 each1
35,897,184
88.0%
14% Non-cumulative preference shares of €0.60 each
1,340,000
3.3%
8% Non-cumulative preference shares of €0.60 each
3,532,292
8.7%
Total Voting shares
40,769,476
100.0%
1excluding 164,005 shares held in treasury
The Company’s ordinary shares of €0.60 each are listed on the Main Securities Market of Euronext
Dublin. On 10 June 2024, the ordinary shares were removed from the Official List of the Financial
Conduct Authority and were cancelled from admission to trading on London Stock Exchange. FBD
Holdings plc remains listed on the Main Market of Euronext Dublin. Since 10 June 2024, the ordinary
shares are traded on Euronext Dublin only. Neither class of preference share is traded on a regulated
market.
Each of the above classes of share enjoys the same rights to receive notice of, attend and vote at
meetings of the Company.
Non-voting shares
Number in issue
‘A’ ordinary shares of €0.01 each
13,169,428
The rights attaching to the ‘A’ ordinary shares are clearly set out in the Articles of Association of the
Company. They are not 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.
Dematerialisation
Following a successful conversion on 1 January 2025, Irish corporate securities have now fully
transitioned to a dematerialised format. This means that all shares and securities will now only exist in
electronic format, eliminating the need for paper share certificates. Shareholders with access to
Computershare’s Investor Centre platform can check their balance or download a Statement of
Holding (as required) on the records of the registrar at any time by either logging in or registering via
www.investorcentre.com/ie.
For shareholders who do not yet have access to the above platform, it is recommended that you take
steps to sign up now. Shareholders who are unable to access Investor Centre can contact
Computershare to obtain a confirmation of their up-to-date balance. Contact details for
Computershare are available on the Investor Section of our website www.fbdgroup.com.
Non-Financial Statement
The Sustainability Statement in accordance with Part 28 of the Companies Act 2014 including the
requirements of the European Union (disclosure of Non-Financial and Diversity Information by certain
large undertakings and groups) Regulations 2017 (as amended by Statutory Instrument No. 410 of
2018) is included in pages 96 to 176 and forms part of this report.
Key Intangible Resources
The Group's intangible resources, which it depends on and are a source of value creation for the
Group, are set out in note 18 Intangible Assets.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
38
Independent Auditors
PricewaterhouseCoopers, Chartered Accountants and Statutory Audit Firm, were appointed by the
Directors in 2016 to audit the financial statements for the financial year ended 31 December 2016 and
subsequent financial periods. In accordance with section 1613 of the Companies Act, 2014, the
Sustainability Statement set out on pages 96 to 176 has been subject to limited assurance review by
PricewaterhouseCoopers.
The period of total uninterrupted engagement is nine years, covering the financial years ended 31
December 2016 to 31 December 2024. PwC has signified their willingness to continue in office in
accordance with the provisions of Section 383(2) of the Companies Act 2014.
Regarding disclosure of information to the Auditors, the Directors confirm that:
As far as they are aware, there is no relevant audit information of which the Group’s statutory auditors
are unaware; and they have taken all the steps that they ought to have taken as a Director in order to
make themselves aware of any relevant audit information and to establish that the Group’s statutory
auditors are aware of that information.
Please see page 50 in relation to Auditor Succession.
Accounting Records
The Directors have taken appropriate measures to ensure compliance with Sections 281 to 285 of the
Companies Act, 2014 – the requirement to keep proper accounting records – through the employment
of suitably qualified accounting personnel and the maintenance of appropriate accounting systems.
The accounting records are located at FBD House, Bluebell, Dublin 12, Ireland.
Directors’ Compliance Statement
The Directors of the Company acknowledge that they are responsible for securing the Company’s
compliance with its relevant obligations (as defined in the Companies Act 2014 (the “2014 Act”)) and,
as required by section 225 of the 2014 Act, the Directors confirm that:
(i) a compliance policy statement setting out the Company’s policies with regard to complying with
the relevant obligations under the 2014 Act has been prepared;
(ii) arrangements and structures have been put in place that they consider sufficient to secure
material compliance with the Company’s relevant obligations; and
(iii) a review of arrangements and structures has been conducted during the financial year to which the
Directors’ report relates.
Corporate Governance
The Corporate Governance Report on pages 42 to 46 forms part of this report. In the Corporate
Governance Report, the Board has set out how it has applied the principles set out in the Code, which
was adopted by Euronext Dublin and the Irish Annex, and the Central Bank of Ireland Corporate
Governance Code requirements for Insurance Undertakings 2015.
Euronext Dublin has published the first Irish Corporate Governance Code. The Irish Code will apply to
Irish-incorporated companies listed on the regulated market of Euronext Dublin for accounting years
commencing on or after 1 January 2025. FBD Holdings plc will report under this Code for year ending
31 December 2025 and for future years.
Board Committees
The Board has established Committees to assist it in the execution of its responsibilities. These are:
•
the Audit Committee;
•
the Risk Committee;
•
the Nomination and Governance Committee; and
•
the Remuneration Committee.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
39
A Disclosure Committee is in place with responsibility for overseeing the disclosure of information as
required under the Irish Listing Rules, the Disclosure and Transparency Regulations, and Market Abuse
Regulation (EU) 596/2014 and compliance with these obligations. A Standing Committee is also in
place to assist the Board in implementing administrative actions.
Political Donations
The Group did not make any political donations during 2024.
Viability Statement
The Directors have assessed the prospects of the Group and its ability to meet its liabilities as they
fall due in the medium term. The Directors selected a five-year timeframe which they consider
appropriate as this corresponds with the Board’s strategic planning process. The objectives of the
strategic planning process are to consider the key strategic choices facing the Group and to
incorporate these into a financial model with various scenarios. This assessment has been made with
reference to the Group’s current position and prospects, the Group’s strategy, the Board’s risk appetite
and the principal risks and uncertainties facing the Group, as outlined in the Risks and Uncertainties
Report on pages 18 to 27.
In 2024, the Board carried out an in-depth strategic review and focus had been given to the macro-
economic outlook, and other factors potentially impacting FBD's trading environment over the
strategic horizon. Strategic risk is considered within the Board’s Risk Management Framework. As part
of the strategy review, the Board were presented with a risk opinion on the Strategy Evolution 2025 to
2029. The Board was satisfied that the Strategy Evolution is aligned to the Risk Appetite Framework
and does not introduce or promote excessive levels of risk taking. The Board reviewed and approved
the Group's five-year strategy 2025 to 2029 in October 2024 and this is reviewed on an annual basis
to determine continuing relevance.
The Group performs an Own Risk and Solvency Assessment ('ORSA') annually which subjects FBD’s
solvency capital levels to a number of extreme stress scenarios. Climate Change Risk had been
considered as part of the ORSA which was approved in December 2024. The main purpose of the
ORSA process is to assess, in a continuous and prospective way, the overall solvency needs related to
the specific risk profile of the insurance company. The outputs from the ORSA assist the Board by
outlining the implications that strategic decisions have on the risk profile, regulatory capital and overall
solvency needs of the Company. As part of the 2024 ORSA process, work was carried out to consider
the financial assumptions underpinning the Strategy. Based on the results of these tests, the Directors
confirm that they have performed a robust assessment of the principal risks facing the Group,
including those that would threaten its business model, its future performance and solvency and that
they have a reasonable expectation that the Group will be able to continue in operation and meet its
liabilities as they fall due over the period of the assessment.
Going Concern
The Group’s business activities, together with the factors likely to affect its future development,
performance and financial position are set out in the Chair’s Statement and the Review of Operations,
as is the financial position of the Group. In addition, the Risks and Uncertainties Report on pages 18 to
27 and note 37 of the financial statements include the Group’s policies and processes for financial risk
management.
The Directors report that they have satisfied themselves and consider it appropriate that the Group
and the Company is a going concern, and have not identified any material uncertainties that cast a
significant doubt on the Group’s and the Company’s ability to continue as a going concern over a
period of at least 12 months from the date of approval of the financial statements.
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 Budget 2025 and projections for 2026
which reflect the latest assumptions used by the business, including an allowance for January 2025
weather events. The economic environment may impact on premiums including potential reductions in
exposures, new business and retention levels. Expense assumptions can change depending on the
level of premiums as discretionary spend and resources are adjusted. There were a number of scenario
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
40
projections run as part of the ORSA process as well as 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.
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 date of this
report. Therefore the Directors continue to adopt the going concern basis of accounting in preparing
the financial statements.
Approval of Financial Statements
The financial statements were approved by the Board on 6 March 2025.
Signed on behalf of the Board
Liam Herlihy
Tomás Ó Midheach
Chair
Group Chief Executive Officer
6 March 2025
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
41
Corporate Governance1
The Board of Directors is committed to the highest standards of corporate governance. Good
governance stems from a positive culture and well embedded values. FBD’s core values of respect,
belief, continuous improvement, community, accountability and engagement are central to how the
Board conducts its business and discharges its responsibilities. Equally, these values are relevant to
every employee working throughout the Group in their interactions with each other, and with our
customers, shareholders and other stakeholders.
UK Corporate Governance Code and the Irish Corporate Governance
Annex
The Code) and the Irish Annex codify the governance arrangements which apply to listed companies
such as FBD. Combined, these represent corporate governance standards of the highest international
level.
Throughout 2024 and to the date of this report, FBD applied the principles of the Code and complied
with the provisions of both the Code and the Irish Annex.
This section of the Annual Report sets out the governance arrangements in place in FBD Holdings plc.
Location of information required pursuant to Euronext Dublin Listing
Rule 6.1.80
Listing Rule
Information to be included:
6.1.77 (4)
Refer to Report on Director’s Remuneration on pages 74 to 76.
No information is required to be disclosed in respect of Listing Rules 6.1.77 (1), (2), (3), (5), (6), (7), (8),
(9), (10), (11), (12), (13), (14).
The Board of Directors and its Role
The Group is managed by the Board of Directors.
The primary role of the Board is to provide leadership and strategic direction while maintaining
effective control over the activities of the Group.
The Board has approved a Corporate Governance Framework setting out its role and responsibilities.
This is reviewed annually as part of the Board’s evaluation of its performance and governance
arrangements. The Framework includes a formal schedule of matters reserved to the Board for its
consideration and decision, which includes but is not limited to:
•
Reviewing performance in the light of the Group's strategy, objectives, business plans and budgets
and ensuring that any necessary corrective action is taken;
•
Approving of the Group’s long term objectives and commercial strategy and any material changes;
•
Approving of the annual operating and capital expenditure budgets and any material changes;
•
Overseeing FBD Group Operations;
•
Approving the Risk Appetite and the Risk Management Framework;
•
Approving changes to the Group capital structure, capital projects and approval of the dividend
policy;
•
Approving Financial Statements and any significant change in accounting policies or practices;
•
Ensuring maintenance of a sound system of internal control and risk management;
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
42
1 ESRS G1 GOV-1 5a Role of the administrative, management and supervisory bodies related to business conduct - subject to limited assurance
•
Appointing Directors and the Company Secretary;
•
Reviewing the Groups overall corporate governance arrangements; and
•
Ensuring adequate succession planning for its Board, executive Directors, the Company Secretary
and senior Group management.
This schedule ensures that the skills, expertise and experience of the Directors are harnessed to best
effect and ensures that any major opportunities or challenges for the Group come before the Board for
consideration and decision. The schedule was last reviewed in December 2024.
Other specific responsibilities of the Board are delegated to Board appointed Committees, details of
which are given later in this report.
Board Composition and Independence
At 31 December 2024 the Board comprised two Executive Directors1 and nine Non-Executive
Directors 2, including the Chair. This structure was deemed appropriate by the Board.
The Board deem it appropriate that it should have between eight and twelve members and that this
size is appropriate, being of sufficient breadth and diversity to ensure that there is healthy debate and
input.
Seven of the Non-Executive Directors in office at the end of 2024 were considered to meet all of the
criteria indicating independence set out in the Code. This is representative of 64%3 of the overall
Board of Directors.
Date first elected
by shareholders
Years from first election
to 2025 AGM
Considered to be
independent
Liam Herlihy
29 April 2016
9 years 0 months
Yes on appointment
Sylvia Cronin
31 July 2020
4 years 9 months
Yes
Jim Bergin
Awaiting election
–
Yes
Mary Brennan
31 August 2016
8 years 8 months
Yes
Olive Gaughan
Awaiting election
–
Yes
Francie Gorman
Awaiting election
–
Yes
Pat Murphy
9 May 2024
1 year 0 months
No
Richard Pike
31 July 2020
4 years 9 months
Yes
Jean Sharp
12 May 2022
3 years 0 months
Yes
Liam Herlihy was independent on appointment as Chair of FBD Holdings plc in accordance with
Provision of the Code. Patrick Murphy is Chair of the Group's largest shareholder, Farmer Business
Developments plc, and is not considered to be independent.
The Board is cognisant of the independence requirements of the Code with respect to its Non-
Executive Directors. In that regard, the Board has reviewed its current composition and determined
that Sylvia Cronin, Jim Bergin, Mary Brennan, Olive Gaughan, Francie Gorman, Richard Pike and Jean
Sharp are independent and free of any relationship which could materially interfere with the exercise
of their independent judgment. The Board has found that each Non Executive Director continues to
demonstrate independence of thought and expertise in meetings, and to support the senior
management in an objective manner and offer appropriate levels of challenge.
In reaching that determination, the Board took into account the principles relating to independence
contained in the Code and in particular, whether any Non-executive Director:
•
is or has been an employee of the Company or the Group within the last five years;
•
has, or has had within the last three years, a material business relationship with the Company
either directly or indirectly;
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
43
1 ESRS GOV-1 21a Number of executive members - subject to limited assurance
2 ESRS GOV-1 21a Number of non-executive members - subject to limited assurance
3 ESRS GOV-1 21e Percentage of independent board members - subject to limited assurance
•
has received or receives remuneration from the Company apart from a Director’s fee, participates in
the Group’s share plans, or is a member of the Group’s pension scheme;
•
has close family ties with any of the Company’s advisers, Directors or senior employees;
•
holds cross-directorships or has significant links with other Directors through involvement in other
companies or bodies;
•
represents a significant shareholder; or
•
has served on the Board for more than nine years from the date of their first appointment.
The Board is satisfied that the independence of the Non-Executive Directors has not compromised by
these or any other factors.
Key Roles and Responsibilities
Chair
The role of the Chair is set out in writing in the Corporate Governance Framework. The Chair is
responsible, inter alia, for:
•
Setting the Board’s agendas and ensuring that they cover the key strategic issues confronting the
business;
•
Leading the Board, encourage discussions, challenge the Board’s mindsets and to facilitate the
appropriate level of debate, promoting a culture of openness and debate at Board meetings and
ensuring that the Directors apply sufficient challenge to management proposals;
•
Nurturing relationships founded on mutual respect and open communication inside and outside the
Boardroom, between the Non-Executive Directors and Senior Executives;
•
Facilitating the effective contribution of Non-Executive Directors in particular and ensure
constructive relations between Executive and Non-Executive Directors are maintained;
•
Ensuring that the Directors receive accurate, timely and clear information;
•
Ensuring the Board receive adequate training about the operations and performance of the
Company to ensure Non-Executive Directors make informed decisions;
•
Ensuring that the performance of individual Directors and the Board as a whole and its committees
is evaluated on an annual basis;
•
Leading the Board appointment process in line with the Board Recruitment, Succession and
Diversity Policy;
•
Chairing the Annual General Meeting and deal with questions from shareholders; and
•
Ensuring that there is effective communication with shareholders.
Group Chief Executive Officer
The role of the Group Chief Executive Officer is set out in writing in the Corporate Governance
Framework. They are responsible, inter alia, for:
•
Developing a clear strategy for FBD with the Board and providing a formal process for review of
strategy;
•
Developing clear objectives and plans along with a suitable organisational structure to implement
strategy;
•
Establishing Key Performance Indicators quantifying individual and organisational goals for the
business and the senior management team and evaluating performance accordingly;
•
Ensuring that the organisation remains flexible to the changing business environment;
•
Growing and motivating a top class management team to meet the challenges of the business;
•
Maximising the efficient and effective use of resources;
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
44
•
Articulating, disseminating and providing leadership in relation to the vision, mission, objectives and
values of FBD and maximising morale and efficiency within the organisation;
•
Identifying and managing change within FBD and in the market and driving a process of continuous
improvement;
•
Providing career development and succession throughout the organisation, particularly at
management level; and
•
Representing FBD externally with shareholders, customers, regulators, media, providers and the
public.
Senior Independent Director
The Senior Independent Director is responsible for:
•
Being available to shareholders if they have any concerns which contact through the normal
channels of Chair, Chief Executive or other Executive Directors has failed to resolve or for which
such contact is inappropriate;
•
Leading the annual appraisal of the performance of the Chair;
•
Acting as a sounding board for the Chair; and
•
Serving as an intermediary for the other Non-Executive Directors where necessary.
Company Secretary
The Company Secretary acts as Secretary to the Board and to its Committees. In so doing, they:
•
Advising the Board, through the Chair, on all governance matters;
•
Ensuring good information flows within the Board and its Committees and between Senior
Management and Non-Executive Directors;
•
Facilitating induction and assist with professional development as required;
•
Having responsibility for ensuring that Board procedures are complied with; and
•
Regularly reviewing the Board governance processes with a view to ensuring they are fit for
purpose.
Board effectiveness and performance evaluation
Board effectiveness is reviewed annually as part of the Board’s performance evaluation process. The
Chair is responsible for ensuring that each Director receives an induction on joining the Board and that
they receive any additional training they require. The induction itself is organised and delivered by the
Company Secretary, other members of the Executive Management Team and by external providers
where appropriate. More information on Induction and Board Training can be found on page 67.
Board Evaluation
Every year the Board evaluates its performance and that of its Committees. Directors are expected to
take responsibility for identifying their own training needs and to take steps to ensure that they are
adequately informed about the Group and about their responsibilities as a Director. The Board is
confident that all of its members have the requisite knowledge and experience and support from
within the Group to perform their role as a Director of the Group.
The last external Board Evaluation was carried out in 2023 in respect of the year ended 31 December
2022 by Board Excellence. The output of this external review found that the Board had strong board
dynamics with a healthy balance of intelligent robust oversight by the Non-Executive Directors, a
progressive approach to collaboration on strategy between the Executive Team and the Board and
deep commitment to the highest standards of corporate governance, engagement with shareholders
and stakeholders, and ethics. Recommendations from this external review were progressed and
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
45
implemented over the course of 2023. The next external assessment will take place for the year
ending 31 December 2025.
FBD remains committed to ensuring that it has a high-performing Board, which is equipped to
anticipate, meet and overcome future challenges and risks and to ensure alignment with the Group's
long-term strategy.
Further details of the 2024 Board Effectiveness and Performance Evaluation are set out in the
Nomination and Governance Report on pages 67 to 73.
Re-election of Directors
The Board has, since 2011, adopted the practice that all Directors will submit themselves for re-
election at each AGM regardless of length of service or the provisions of the Company’s Articles of
Association.
Access to advice
All members of the Board have access to the advice and the services of the Company Secretary who is
responsible for ensuring that Board procedures are followed and that applicable rules, regulations and
other obligations are complied with.
In addition, members of the Board may take independent professional advice at the Group’s expense if
deemed necessary in the furtherance of their duties.
Attendance at Board and Board Committee Meetings during 2024
Board
Audit
Nomination and
Governance
Remuneration
Risk
J Bergin 1
1 of 1
M Brennan
12 of 12
8 of 8
5 of 5
T Cullinan2
7 of 8
S Cronin
12 of 12
9 of 9
4 of 4
5 of 5
L Herlihy
12 of 12
9 of 9
4 of 4
5 of 5
O Gaughan3
7 of 7
5 of 5
3 of 3
F Gorman4
4 of 4
P Murphy
12 of 12
D O'Connor5
0 of 4
0 of 3
0 of 1
J O'Dwyer6
10 of 11
7 of 7
3 of 3
T Ó Midheach
12 of 12
R Pike
12 of 12
3 of 3
1 of 1
5 of 5
J Sharp
12 of 12
8 of 8
9 of 9
K Tobin
12 of 12
If a Director is unable for any reason to attend a Board or Committee meeting, he or she will receive
Board/Committee papers in advance of the meeting and is given an opportunity to communicate any
views on or input into the business to come before the Board/Committee to the Board/Committee
Chair.
Each of the Committees have written terms of reference which were approved by the Board and set
out the Committees’ powers, responsibilities and obligations. The terms of reference are reviewed at
least annually by the Board. These are available on the Group’s website www.fbdgroup.com.
The Company Secretary acts as Secretary to the Committees. Minutes of all of the Committees’
meetings are available to the Board.
Each of these Committees have provided a report in the sections following.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
46
1 Jim Bergin was appointed on 19 November 2024
2 Tim Cullinan resigned on 9 September 2024
3 Olive Gaughan was appointed on 22 May 2024
4 Francie Gorman was appointed on 9 September 2024
5 David O'Connor passed away on 12 April 2024
6 John O'Dwyer passed away on 24 November 2024.
Report of the Audit Committee
JEAN SHARP
Committee Chair
Membership 1 January 2024 to 6
March 2025
Length of time served on committee at date of report
J Sharp
Committee Chair, Independent Non-
Executive Director
3 years 4 months
M Brennan
Independent Non-Executive Director
8 years 6 months
O Gaughan
Independent Non-Executive Director
0 years 9 months
J O'Dwyer1
Independent Non-Executive Director
2 years 8 months
Committee Composition
as at 6 March 2025
0.0%
100.0%
Male
Female
Committee Membership and Experience
The Committee Members have been selected to ensure that the Committee has available to it the
range of skills and experience necessary to discharge its responsibilities. The Board is satisfied that all
Members are considered to have recent and relevant financial experience and two members have
relevant qualifications.
In accordance with the UK Code, all Members of the Committee are Independent Non-Executive
Directors.
Ms Sharp is a Fellow of Chartered Accountants Ireland and is a former partner in EY Accounting firm.
She also holds another position of Chair of the Audit Committee in her portfolio of directorships. Ms
Sharp has significant experience of the Irish and UK market and internationally having worked in Papua
New Guinea.
Ms Brennan is a Fellow of Chartered Accountants Ireland. She has gained international experience
working in audit for KPMG and in a number of publicly listed companies including Elan plc and
Occidental Petroleum Corp. Ms Brennan holds the position of Chair of the Audit Committee of FBD
Insurance plc.
Ms Gaughan is a Fellow of the Society of Actuaries in Ireland with significant senior experience in
financial reporting and reserving within the insurance sector in Ireland. She is a former Director of
Actuarial Services in Mazars Ireland where she was actuarial lead and signing actuary on the audits of
a number of insurance companies. She is a member of the Audit Committee of each (re)insurance
company in her directorship portfolio.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
47
1 John O''Dwyer passed away on 24 November 2024.
The Board recognises the benefits of cross membership among its Board Committees. Ms Sharp is a
member of both the Audit and Nomination and Governance Committee. Ms Brennan is a member of
both the Audit and Risk Committee. Ms Gaughan is a member of both the Audit and Risk Committee.
The Committee as a whole has the competence relevant to the General Insurance sector.
Objective of the Committee
To assist the Board of the Group in fulfilling its oversight responsibilities for such matters as financial
reporting, the system of internal control and management of financial risks, the audit process and the
Group’s process for monitoring compliance with laws and regulations.
Key responsibilities delegated to the Committee include:
•
Reviewing the Group’s financial results announcements and financial statements;
•
Reviewing on an annual basis the Audit Committee Terms of Reference and recommend any change
to the Board for approval;
•
Reviewing and monitoring the effectiveness and adequacy of the Group's internal financial controls,
and risk management systems;
•
Considering any significant fraud, illegal acts, and deficiencies in internal control or similar issues;
•
Reviewing of significant financial reporting judgements;
•
Overseeing the relationship with the external auditors including reviewing and approving their
terms of engagement and remuneration in respect of audit services;
•
Reviewing and monitoring the independence and objectivity of the Statutory Auditor and the
effectiveness of the audit process;
•
Reviewing the findings of the audit with the Statutory Auditor;
•
Approving the Internal Audit Annual Work Plan;
•
Monitoring and reviewing the activities and effectiveness of the Group’s Internal Audit Function;
•
Reviewing the independence and scope of the Internal Audit Function;
•
Reviewing and approving the Internal Audit Strategy on an annual basis, and the Internal Audit
Charter periodically;
•
Meeting separately with the Head of Internal Audit and the Statutory Auditor at least annually to
discuss any matters that the Committee or the Head of Internal Audit consider should be dealt
with privately;
•
Monitoring the quality and integrity of sustainability disclosures within the Annual Report, including
the effectiveness of internal control and risk management systems,
•
Monitoring the CSRD reporting process, oversee assurance of CSRD reporting, review and make
recommendations to the Board on the approval of the annual Sustainability Statement that form
part of the Annual Report; and
•
Performing detailed reviews of specific areas of financial reporting as required by the Board or the
Committee.
Meetings
The Committee met on eight occasions during 2024. Attendance at the scheduled meetings held
during 2024 is outlined on page 46. Meetings are attended by Committee Members. The Group Chief
Financial Officer and the Group Head of Internal Audit are regular attendees at meetings. The
Statutory Auditor is also invited to attend meetings on a regular basis. Additionally, the Head of
Actuarial Function and the Group Chief Risk Officer are invited to attend all scheduled meetings at the
request of the Committee. The Chair of the Board and the Group Chief Executive Officer are not
members of the Committee and do not attend meetings of the Committee unless invited. The Chair of
the Board and the Group Chief Executive Officer did not attend any Committee meetings in 2024. The
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
48
Committee regularly meets separately with the Statutory Auditor and with the Group Head of Internal
Audit, without members of management present.
The minutes of Committee meetings are available to the Board. The Committee Chair also provides a
verbal report to the Board after each Committee meeting. The Committee reports formally to the
Board annually on the overall work undertaken and the degree to which it discharged the
responsibilities delegated to it.
Activities of the Committee during 2024
The principal activities undertaken by the Committee during 2024 include:
•
Reviewing and approving Committee Minutes;
•
Considering and reviewing the Key Methodologies, Judgements and Uncertainties, reviewing the
Actuarial Reserve Analysis; and Going Concern Assessment;
•
Reviewing drafts of the Annual Report, Preliminary Results Announcement and the IFRS 17 Results;
•
Reviewing Letters of Representation prior to their consideration by the Board;
•
Reviewing all aspects of the relationship with the External Auditor, including performance, the
statutory audit plan, audit findings and recommendations and consideration of the independence
of the external auditors and the arrangement in place to safeguard this, including partner rotation,
auditor independence, and reviewing and approving of External Audit fees for 2024 financial year;
•
Reviewing the Internal IT Update and External Audit IT General Control Report;
•
Reviewing and recommending to the Board for approval the Solvency and Financial Condition
Report, Regular Supervisory Report, Quantitative Reporting Templates and Solvency II Reporting
Policy and Director Accuracy Statement;
•
Appraising the Internal Audit Function, its independence, Annual Plan, Internal Audit Strategy,
Internal Audit Charter, approving the Internal Audit Budget, reports and issues arising and
monitoring the scope and effectiveness of the Function;
•
Reviewing the adequacy and effectiveness of controls operated by management to identify,
mitigate regulatory, operational and financial risk;
•
Reviewing the Annual Risk Management Report;
•
Reviewing the Actuarial Reserve Analysis;
•
Receiving regular updates and training on the Corporate Sustainability Reporting Directive;
•
Approving the Double Materiality Assessment ('DMA');
•
Reviewing the draft Sustainability Statement;
•
Considering management's review of the annual IAASA publication on "Observations on Selected
Financial Reporting Issues- Years ending on or after 31 December 2024";
•
Reviewing policies including the Internal Control Policy, Anti-Fraud Policy, Solvency II Reporting
Policy, Non-Audit Services Policy, Non-Financial Reporting Policy and Speak Up Policy;
•
Overseeing a tender process for the appointment of a new External Auditor for FY2026;
•
Reviewing the Committee Terms of Reference and recommended to the Board for approval; and
•
Reporting to the Board on its activities and confirmed the degree to which the Committee’s
delegated responsibilities had been discharged through verbal reports to the Board after each
meeting and a formal written report presented annually.
Corporate Sustainability Reporting Directive
A significant area of focus for the Committee throughout 2024 was the introduction of the Corporate
Sustainability Reporting Directive (CSRD), which came into force on 5 January 2023. The CSRD was
transposed into Irish law by the European Union (Corporate Sustainability Reporting) Regulations
2024, amending the Companies Act 2024 and the Transparency Regulations 2007. Companies subject
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
49
to the CSRD are required to report according to European Sustainability Reporting Standards (ESRS)
from 1 January 2024.
During 2024, the Committee members attended three internal validation workshops facilitated by our
ESG consultants with key individuals within the business, the first of which facilitated the Committee
members to provide feedback to management preparing the CSRD sustainability disclosures included
in the Annual Report. The second workshop consisted of a detailed review of the DMA, and the third
workshop comprised of a detailed review of the role of the Audit Committee in CSRD.
As part of the workshop where the DMA was reviewed, the Committee was presented with an
overview of the approach to engagement with stakeholders to score the Impacts, Risks and
Opportunities (IRO). This encompassed the use of surveys and interviews with internal and external
stakeholders and the output of these was provided to the Committee.
The Committee also received regular updates on the CSRD Programme Status, which included
management presenting draft Sustainability Statement for review, receiving an update on the progress
of IRO refinement, and the presenting of an overview of the progress of the Dry-Run testing
undertaken.
Auditor Independence
In 2024 the Committee considered the independence of the Auditors and acknowledged the
independence and quality control safeguards operated within PwC. Annually the Committee review
and approve a Non-Audit Services Policy which is in place to mitigate any risks threatening, or
appearing to threaten, the external audit firm’s independence and objectivity arising through the
provision of other assurance services. The review of this policy was last carried out in July 2024. No
other assurance services were provided by PwC other than the audit of those elements of the
Solvency and Financial Condition Report that PwC are required to audit, the limited assurance review
engagement on the Sustainability Statement forming part of this Annual Report, the provision of
certificates of premium amounts to the Motor Insurers Bureau of Ireland, the audit of the defined
contribution pension scheme and the interim review.
The Committee reviewed and approved the Auditor fees and agreed that these were reasonable in
light of the workload associated with CSRD and the current inflationary environment.
In considering the independence and effectiveness of the external audit process, the Committee
reviewed the External Audit Plan, the audit approach and objectives and Audit Findings and were
satisfied with the independence, quality and performance of PwC in respect of the year ended 31
December 2024.
PricewaterhouseCoopers have been Auditors of the Group for nine years, and were re-appointed as
Auditors in respect of the financial year ended 31 December 2024.
Auditor Tender Process
During the year, the Audit Committee oversaw a competitive tender process to select a new Statutory
Auditor for the financial year commencing 1 January 2026. As a Public Interest Entity (PIE), FBD under
Irish Auditing and Accounting Supervisory Authority ('IAASA') standards must change, via tender
process, their Statutory Auditor every ten years. FBD must adhere to the EU Audit Tender Process, in
particular, Article 16 of (EU) No 537/214, which provides that the Audit Committee must submit a
recommendation to the Board regarding Statutory Auditor appointment, the recommendation must
contain at least two choices for the Board, with a clear justified preference for one over the other for
their consideration. The Audit Committee recommendation must also be free from any Third-Party
influence. Any candidates invited to tender, must meet the condition that they are detailed on the
IAASA list of competent authorities.
The Committee approved a management proposal that FBD would undertake a two-stage tender
process. This process was supplemented by a full analysis against IAASA, Financial Reporting Council
('FRC') guidance and external best practice guidelines around the Statutory Audit Process. Stage one
saw the invitation of potential providers to submit tender proposals which would be scored by a mix of
key FBD stakeholders, to determine a shortlist of candidates invited to partake in Stage two. A full
scoring process, including a review of the prior three years of IAASA reports was completed with a
decision made to shortlist a number of candidates for Stage two of the Audit tender process. The
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
50
shortlisted candidates then presented to a panel consisting of the Audit Committee members and
representatives of relevant FBD Business Functions. Deloitte emerged as the successful candidate.
Audit Transitional Plans
A decision was made by the Board, at the recommendation of the Audit Committee, following this
external process that Deloitte be selected to replace PwC as Auditor of the Group. PwC will remain as
Statutory Auditors for the year ending 31 December 2025.
Independence and the Provision of non-Audit Services
There are no identified independence issues preventing PwC from being appointed as FBD’s Auditor
for the 2025 financial year.
Deloitte cannot engage in non-audit services that would compromise its independence. As a result,
Deloitte’s current work for FBD on Internal Audit support and Executive Remuneration ceased on
1 January 2025.
Key Audit Issues and Critical Judgements
The significant issues, critical judgements and estimates used in the formulation of the financial
statements are set out in note 3 on page 224 to 226. All are considered by the Committee, with
particular focus on the following:
Key Issue
Committee conclusion
Valuation of the liability for
incurred claims
The Committee reviewed the best estimate of the ultimate cost of claims incurred,
the adjustment to best estimate for future cash flows to reflect the time value of
money and the financial risks related to those cash flows, the risk adjustment for
non-financial risk, as well as the actuarial methodologies and key assumptions. The
Committee was satisfied with the measurement and valuation of the liability for
incurred claims.
Going concern
The Committee reviewed management's documentation of the going concern
assessment. The Committee was satisfied that there were 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 date of this report.
Fair, balanced and understandable
The Committee formally advises the Board on whether the Annual Report and financial statements,
taken as a whole, are fair, balanced and understandable, in accordance with Provision 27 of the Code.
The Committee must ensure that the Annual Report and financial statements also provide the
information necessary for shareholders to assess the performance of the Group, along with its
business model and strategy and the Committee is satisfied that the above requirements have been
met.
Evaluation
The Committee has reviewed the activities which it performed and its overall effectiveness and has
concluded that it has operated effectively in providing the Board with the assurances needed to
discharge its responsibilities.
Jean Sharp
On behalf of the Audit Committee
6 March 2025
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
51
Report of the Risk Committee
MARY BRENNAN
Committee Chair
Membership 1 January 2024 to 6
March 2025
Length of time served on committee at date of report
M Brennan
Committee Chair, Independent Non-
Executive Director
3 years 4 months
S Cronin
Senior Independent Non-Executive
Director
5 years 0 months
L Herlihy
Board Chair
7 years
10 months
O Gaughan
Independent Non-Executive Director
0 years 9 months
R Pike
Independent Non-Executive Director
5 years 0 months
Committee Composition
as at 6 March 2025
40.0%
60.0%
Male
Female
Committee Membership and Experience
The Committee Members have been selected to ensure that the Committee has the relevant risk
experience and the range of skills and experience necessary to discharge its responsibilities. The Board
is satisfied that all Members are considered to have recent and relevant experience.
Ms Brennan has notable experience in Risk and Internal Audit and she has held the position of Chair of
the Risk Committee in her portfolio of financially regulated directorships. She has gained international
experience working in audit for KPMG and in a number of publicly listed companies including Elan plc
and Occidental Petroleum Corp.
Prior to joining the Board, Ms Cronin was previously the Director of Insurance Supervision at the
Central Bank of Ireland and currently holds the position of Chair of the Risk Committee of FBD
Insurance plc in addition holding this role within her portfolio of directorships. She has gained key
European experience through her membership of the European Insurance and Occupational Pensions
Authority (EIOPA) Board of supervisors from 2014 to 2019. Ms Cronin also has experience of the UK
market through her portfolio of directorships.
Mr Herlihy has appropriate experience having been a long standing member of the Risk Committee. Mr
Herlihy has gained international experience in his former role as Chair of Glanbia plc, a global food and
nutritional business.
Mr Pike's expertise is in the areas of Strategy, Technology, Finance, Innovation and Risk Management.
Mr Pike also lectures on Risk Management and Governance. Mr Pike has regulated board experience in
Ireland and the UK and extensive experience working across Europe and the US in the areas of
Information Technology and Financial Services. Mr Pike previously held the position of Chair of the Risk
Committee in FBD Insurance plc.
Ms Gaughan has significant experience in risk management within the insurance sector, notably in
relation to the Risk Management Frameworks, ORSA, Model Risk, Reinsurance and Solvency II. As
Head of Actuarial Function for a number of insurers during her executive career, she has opined on
ORSA processes and contributed to Capital and Risk Management for many years. She also brings
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
52
expertise in relation to Climate Risk and Sustainability and Artificial Intelligence. Ms Gaughan has
extensive Risk Committee experience and sits on the Risk Committee of each (re)insurance company in
her directorship portfolio.
The Board recognises the benefits of cross membership among its Board Committees. Ms Brennan and
Ms Gaughan are members of both the Risk Committee and Audit Committee and Mr Herlihy, Ms
Cronin and Mr Pike are members of the Risk Committee, Nomination and Governance Committee and
Remuneration Committee.
Objective of the Committee
The Board Risk Committee is the forum for risk governance within FBD. It is responsible for providing
oversight and advice to the Board in relation to current and potential future risk exposures of the
Group and future risk strategy. This advice includes recommending a Risk Management Framework
incorporating strategies, policies, risk appetites and risk indicators to the Board for approval. The Risk
Committee oversees the Risk Function, which is managed on a day to day basis by the Chief Risk
Officer.
Key responsibilities delegated to the Committee include:
•
Promoting a risk awareness culture within the Group;
•
Ensuring that the material risks and emerging risks facing the Group have been identified and that
appropriate arrangements are in place to manage and mitigate those risks effectively;
•
Advising the Board on the effectiveness of strategies and policies with respect to maintaining, on
an ongoing basis, the amounts, types and distribution of capital adequate to cover the risks of the
Group;
•
Reviewing and recommending the Annual Compliance Plan and Compliance Framework to the
Board for approval;
•
Reviewing and recommending the Risk Management Framework to the Board for approval;
•
Reviewing and challenging risk information received by the Chief Risk Officer from the business
departments to ensure that the Group is not exceeding the risk limits set by the Board;
•
Presenting a profile of the Group’s key risks, Risk Management Framework, Risk Appetite and
Tolerance and Risk policies at least annually together with a summary of the Committee’s business
to the Board;
•
Meeting separately with the Head of Compliance, Chief Risk Officer, and the Head of Internal Audit
at least annually to discuss any matters that the Committee or the Chief Risk Officer consider
should be dealt with privately;
•
Reviewing and ensuring that an appropriate risk culture is embedded throughout the Group; and
•
Reviewing and recommending the Annual Data Protection Plan and the Annual Risk Function Plan to
the Board for approval;
Meetings
The Committee met on five occasions during 2024. Meetings are attended by Committee Members.
The Chief Risk Officer is an attendee at all Committee meetings. The Group Chief Executive Officer,
the Group Chief Financial Officer and the Chief Underwriting Officer are regular attendees at
Committee meetings.
The minutes of Committee meetings are available to the Board. The Committee Chair also provides a
verbal report to the Board after each Committee meeting. The Committee reports formally to the
Board annually on the overall work undertaken and the degree to which it discharged the
responsibilities delegated to it.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
53
Activities of the Committee during 2024
The principal activities undertaken by the Committee during 2024 include:
•
Reviewing and approving Committee Minutes;
•
Assisting the Board in the review, update and approval of Risk policies, including frameworks, Risk
Appetite, Risk Indicators, Risk Tolerance and Emerging Risks;
•
Recommending the Risk Plan and Compliance Plan for 2025 to be presented to the Board for
approval;
•
Reviewing the Solvency Capital Requirement throughout the year;
•
Reviewing and approving Internal Reserve Peer Review Process;
•
Reviewing the ORSA Update including reviewing the ORSA Plan, proposed ORSA scenarios for
2024, and approval of the ORSA Policy;
•
Reviewing the Privacy and Maturity Assessment and the Data Protection Officer Half Yearly Report,
reviewing the AI Update, and recommended the Data Protection Policy and Plan 2025 to the Board
for approval;
•
Reviewing the GDPR Update including the Mitigation Plan for the data Pseudonymisation Project,
and summary of data access requests;
•
Reviewing the quarterly Actuarial Reserve Analysis, and the Head of Actuarial Function Report;
•
Reviewing the Deep Dives undertaken in respect of Claims Settlement Risk, Sales Operational-
Sales Consumer Risk, Finance -Payment Processing, and Human Resource Risk;
•
Reviewing the Report of the CRO, and the Report of the Head of Compliance,
•
Assessing the effectiveness of the Business Risk Partners and recommending the Report from the
Business Risk Partners Review to the Board for approval;
•
Receiving an update on the status of the CSRD Implementation project and FBD's readiness for
CSRD reporting;
•
Receiving regular updates on Risk Culture;
•
Receiving regular updates from the Chief Technology and Operations Officer on IT related risks and
Operational Resilience;
•
Reviewing progress in relation to the implementation of the Digital Operational Resilience Act;
•
Receiving an annual update on Subsidiary Governance;
•
Reviewing and recommending the 2025 Reinsurance Programme for Placement to the Board for
approval;
•
Reviewing the update on Investor Relations and RNS Announcements;
•
Reviewing and discussing CBI correspondence and shareholder communications and considerations
received throughout the year; including the Delisting and Buyback;
•
Reviewing of Climate Risk Updates and the associated potential negative impacts;
•
Recommending the Climate Risk: Selection of Baseline Scenario and the Climate Change Risk
Assessment to the Board for approval;
•
Reviewing the Internal Audit Update;
•
Reviewing the Committee Terms of Reference and recommendation to the Board for approval;
•
Reviewing and recommending a number of risk related policies to the Board; including the IT
Disaster Recovery Policy, Business Continuity Policy, Deferred Tax Policy, Capital Management
Policy, Underwriting Policy, Investment Policy, Reserving Policy, Anti Money Laundering Policy and
Annual Risk Assessment , Reputational Risk Policy, Strategic Risk Policy, Liquidity Policy, Market
Abuse Policy and Procedures,
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
54
•
Reviewing and recommending approval of the Risk Management Framework to the Board; and
•
Reviewing and recommending the Operational Resilience Framework and the Operational Resilience
Self-Assessment to the Board for approval.
Evaluation
The Committee has reviewed the activities which it performed and its overall effectiveness and has
concluded that it has operated effectively in providing the Board with the assurances needed to
discharge its responsibilities.
Mary Brennan
On behalf of the Risk Committee
6 March 2025
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
55
Report of the Nomination and
Governance Committee
LIAM HERLIHY
Committee Chair
Membership 1 January 2024 to 6
March 2025
Length of time served on committee at date of report
L Herlihy
Committee Chair, Board Chair
8 years 9 months
S Cronin
Senior Independent Non-Executive
Director
5 years 0 months
J Bergin
Independent Non-Executive Director
0 years 1 month
D O'Connor1
Independent Non-Executive Director
2 years 5 months
R Pike
Independent Non-Executive Director
0 years 8 months
J Sharp
Independent Non-Executive Director
2 years 8 months
Committee Composition
as at 6 March 2025
60%
40%
Male
Female
Committee Membership and Experience
The Committee members have been selected to ensure that the Committee has available to it the
range of skills and experience necessary to discharge its responsibilities. The Board is satisfied that all
Members are considered to have recent and relevant experience.
Prior to joining the Board of FBD, Mr Herlihy was Chair of the Nomination and Governance Committee
and Group Chair of the Board of Glanbia plc. Liam has gained international experience in this role. He
also holds a certificate of merit in Corporate Governance from University College Dublin.
Prior to joining the Board of FBD, Ms Cronin was previously the Director of Insurance Supervision at the
Central Bank of Ireland and currently holds the role of Chair of a Risk Committee within her portfolio of
directorships. She has gained key European experience through her membership of the European
Insurance and Occupational Pensions Authority (EIOPA) Board of supervisors from 2014 to 2019. Ms
Cronin also has experience of the UK market through her portfolio of directorships.
Ms Sharp has experience as a member of a Nomination Committee in her portfolio of Non-Executive
directorships. Ms Sharp has significant experience of the Irish and UK market and internationally
having worked in Papua New Guinea.
Mr Pike has a strong background in financial services, technology and operational risk. Mr Pike’s areas
of expertise include digital technologies, governance, risk, compliance, business management and
strategy. Mr Pike lectures on Risk Management and Governance at the Institute of Banking and the
Smurfit Business School. Mr Pike is the Chair of the Nomination and Governance Committee of FBD
Insurance plc.
In February 2025, the Board approved the appointment of Mr Jim Bergin as member of the Committee.
Jim is the former Chief Executive Officer and Executive Director of Tirlán Co-Operative Society Limited
and he spent a considerable part of his career in Glanbia plc in a number of senior management
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
56
1 David O'Connor passed away on 12 April 2024
positions. Jim is the successor to the role of Board Chair and has considerable experience working
with Nomination and Governance Committee in his previous executive role.
The Board recognises the benefits of cross membership among its Board Committees. Mr Herlihy and
Ms Cronin are both members of the Nomination and Governance Committee, Remuneration Committee
and Risk Committee. Ms Sharp is a member of the Nomination and Governance Committee and the
Audit Committee. Mr Pike is a member of the Risk Committee, the Nomination and Governance
Committee, and the Remuneration Committee.
Objective of Committee
To ensure that the Board and its Committees are made up of individuals with the necessary skills,
knowledge and experience to ensure that the Board is effective in discharging its responsibilities.
Key responsibilities delegated to the Committee include:
•
Reviewing the structure, size and composition of the Board and making recommendations to the
Board for any appointments or other changes;
•
Recommending changes to the Board’s Committees and the Board;
•
Keeping under review the leadership needs of the Group and recommending the appointment of
Directors, Executive Management and the Company Secretary to the Board;
•
Advising the Board in relation to succession planning both for the Board and the Senior Executives
in the Group;
•
Monitoring the Group’s compliance with corporate governance best practice with applicable legal,
regulatory and listing requirements and to recommend to the Board such changes as deemed
appropriate; and
•
Overseeing, in conjunction with the Board Chair, the conduct of the annual evaluation of the Board,
Board Committees, Chair and individual Director Performance.
Meetings
The Committee met nine times during 2024. Only members of the Committee have the right to attend
Committee meetings. However, other individuals may be invited to attend for all or part of any
meeting, as and when appropriate.
The minutes of Committee meetings are available to the Board. The Committee Chair also provides a
verbal report to the Board after each Committee meeting. The Committee reports formally to the
Board annually on the overall work undertaken and the degree to which it discharged the
responsibilities delegated to it.
Activities of the Committee during 2024
The principal activities undertaken by the Committee during 2024 include:
•
Reviewing and approving Committee Minutes;
•
Reviewing the Succession Plan for the Board and Board Composition and Diversity;
•
Reviewing the extension of the tenure of the Board Chair;
•
Reviewing and recommending to the Board the approval of the appointment of the Chair of the
Board;
•
Reviewing the Board Skills matrix, the independence and time commitment of the Non-Executive
Directors;
•
Reviewing and recommending to the Board the approval of the appointment of Independent Non-
Executive Directors;
•
Reviewing updates on the Induction Training Programme for new Directors;
•
Reviewing and recommending to the Board additional directorships for Non-Executive Directors;
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
57
•
Reviewing the updates from the Group Chief Human Resources Officer on engagement with
employees, culture and values;
•
Reviewing update on the actions arising out of the 2023 Board Evaluation;
•
Reviewing the approach for the 2024 Board Evaluation;
•
Reviewing Director tenure;
•
Reviewing and recommending the re-election of the Directors;
•
Reviewing and recommending the Terms of Reference to the Board for approval;
•
Reviewing and recommending to the Board the approval of the Corporate Governance Framework;
•
Reviewing the Corporate Governance Annual Report;
•
Reviewing and approving the Talent Management Policy; and
•
Reviewing and recommending to the Board the approval of a number of policies including the
Fitness and Probity Policy, Conflicts of Interest Policy, Code of Conduct Policy, Disciplinary Policy,
Equal Opportunities, Diversity and Inclusion Policy, and the Board Recruitment, Succession and
Diversity Policy.
Time Commitment
During 2024 the Nomination and Governance Committee reviewed the time commitment of each
Director. Following this review the Committee is satisified that each Director has sufficient time
available to fulfil their role as Director.
Further details of the activities of the Committee are laid out in the Nomination and Governance
report on pages 67 to 73.
Evaluation
The Committee has reviewed the activities which it performed and its overall effectiveness and has
concluded that it has operated effectively in providing the Board with the assurances needed to
discharge its responsibilities.
Liam Herlihy
On behalf of the Nomination and Governance Committee
6 March 2025
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
58
Report of the Remuneration Committee
Richard Pike
Committee Chair
Membership 1 January 2024 to 6
March 2025
Length of time served on committee at date of report
R Pike
Committee Chair, Independent Non-
Executive Director
0 years and 8
months
S Cronin
Senior Independent Non-Executive
Director
5 years 0 months
L Herlihy
Board Chair
3 years 4 months
J Bergin
Independent Non-Executive Director
0 years 1 month
D O'Connor1
Committee Chair, Independent Non-
Executive Director
6 years 11 months
J O'Dwyer 2
Independent Non-Executive Director
1 years 11 months
Committee Composition
as at 6 March 2025
25.0%
75.0%
Male
Female
Committee Membership and Experience
The Committee Members have been selected to ensure that the Committee has available to it the
range of skills and experience necessary to discharge its responsibilities. The Board is satisfied that all
Members are considered to have recent and relevant experience.
Mr Pike was appointed as Chair of the Remuneration Committee in July 2024. In line with the Code,
before his appointment as Chair of the Remuneration Committee of FBD Holdings plc, Mr Pike had
served on a remuneration committee in his portfolio of directorships for at least twelve months.
Mr Herlihy was appointed as a Member of the Committee in October 2021, and in accordance the UK
Code, he was independent on appointment as Chair of FBD Holdings plc. Mr Herlihy was an attendee
at Committee meetings, prior to becoming a Member. He was previously Group Chair and a member of
the Remuneration Committee of Glanbia plc and has gained international experience in his role as
former Chair of Glanbia plc. Mr Herlihy is the Chair of the Remuneration Committee of FBD Insurance
plc.
Ms Cronin was previously the Chief Executive Officer of both MGM International and Augura Life
Ireland Limited and has remuneration experience in these roles. She has been a member of the
Remuneration Committee since 2020 and currently holds the role of Chair of the Remuneration
Committee within her portfolio of directorships. Ms Cronin has gained key European experience
through her membership of the European Insurance and Occupational Pensions Authority (EIOPA)
Board of supervisors from 2014 to 2019. Ms Cronin also has experience of the UK market through her
portfolio of directorships.
In February 2025, the Board approved the appointment of Mr Jim Bergin as member of the Committee.
Jim is the former Chief Executive Officer and Executive Director of Tirlán Co-Operative Society Limited
and he spent a considerable part of his career in Glanbia plc in a number of senior management
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
59
1 David O'Connor passed away on 12 April 2024
2 John O''Dwyer passed away on 24 November 2024
positions. Mr Bergin has considerable experience working with Remuneration Committees in his prior
executive career.
The Board recognises the benefits of cross membership among its Board Committees. Mr Herlihy, Mr
Pike and Ms Cronin are members of both the Remuneration and Risk Committees.
Objective of Committee
The Remuneration Committee is responsible for ensuring that the overall reward strategy is consistent
with achievement of the Group’s strategic objectives.
Key responsibilities delegated to the Committee include:
•
Ensuring that the Group’s overall reward strategy is consistent with achievement of the Group’s
strategic objectives;
•
Determining the broad policy for the remuneration of the Group’s Executive Directors, Company
Secretary and Executive Management;
•
Reviewing the on-going appropriateness and relevance of the Remuneration Policy and Variable Pay
Policy;
•
Determining the total remuneration packages for the foregoing individuals, including salaries,
variable remuneration, pension and other benefit provision and any compensation on termination of
office;
•
Ensuring that remuneration schemes promote long-term shareholdings by Executive Directors that
support alignment with long-term shareholder interests;
•
Ensuring that the Group operates to recognised good governance standards in relation to
remuneration;
•
Determining whether performance criteria has been met for the vesting of any share awards under
the Group’s approved share scheme;
•
Making awards of shares under the Group’s approved share scheme; and
•
Preparation of the detailed Report on Directors’ Remuneration.
Meetings
The Committee met four times during 2024. The Group Chief Executive Officer may attend meetings
of the Committee but only by invitation and not at a time when individual remuneration arrangements
are discussed.
The minutes of Committee meetings are available to the Board. The Committee Chair also provides a
verbal report to the Board after each Committee meeting. The Committee reports formally to the
Board annually on the overall work undertaken and the degree to which it discharged the
responsibilities delegated to it.
Activities of the Committee during 2024
The principal activities undertaken by the Committee during 2024 include:
•
Reviewing and approving Committee Minutes;
•
Reviewing and approving the grant and release of the Long Term Incentive Plan award;
•
Reviewing and approving the performance conditions on conditional awards made under the Long
Term Incentive Plan award;
•
Reviewing and recommending the approval of the Remuneration Policy, the Directors Remuneration
Policy and the Variable Pay Policy to the Board;
•
Approving the application for admission of shares to Euronext;
•
Reviewing and approving Variable Remuneration for Executive Directors and other Senior
Executives;
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
60
•
Reviewing and approving the performance remuneration arrangements including performance
conditions;
•
Reviewing and approving the annual Bonus Pool;
•
Receiving updates on Gender Pay; and
•
Reviewing the Committee's Terms of Reference, and recommending to Board for approval.
Full details of Directors’ Remuneration are set in the Report on Directors Remuneration on pages 74 to
76.
Evaluation
The Committee has reviewed the activities which it performed and its overall effectiveness and has
concluded that it has operated effectively in providing the Board with the assurances needed to
discharge its responsibilities.
Richard Pike
On behalf of the Remuneration Committee
6 March 2025
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
61
Engagement with Stakeholders1
FBD has identified the following as its key stakeholders;
•
Investors;
•
Own Workforce;
•
Customers;
•
Regulators;
•
Government and Industry Bodies;
•
Wider Society and ESG.
The Board is committed to ensuring that excellent lines of communication exist and are fostered
between the Group and its stakeholders. The Board has approved a Stakeholder Framework which
outlines FBD's approach to communicating with and hearing its stakeholders.
The Board is regularly updated on stakeholder engagement and their views. The interests of all FBD's
stakeholders are outlined and considered in Board decision making.
Engagement with Investors
A planned programme of investor relations activities is undertaken throughout the year which includes:
•
briefing meetings with major shareholders after the full year and half yearly results announcements;
•
regular meetings between institutional investors and analysts with the Group Chief Executive
Officer, Group Chief Financial Officer along with the Head of Corporate Strategy and Investor
Relations to discuss business performance and strategy and to address any issues of concern; and
•
responding to letters, requests and queries received directly from shareholders and from proxy
adviser firms.
The Board receives reporting on shareholder engagement which includes details of meetings held,
feedback received and issues either of interest or of concern raised. Any issues arising are addressed
and discussed at Board meetings.
The Annual General Meeting is the main platform for shareholders to share their views with
management and to ask questions. Further information on the Annual General Meeting can be found
on page 64. Should a significant proportion of votes be cast against a resolution at any general
meeting, the Board will endeavour to identify the shareholders concerned and will initiate contact with
them with the view to understanding the reasons for the adverse vote. In 2024, no resolution had 20%
or more votes cast against it.
Engagement with Own Workforce
FBD recognises the importance and value of engaging with its workforce. Throughout 2024 all
employees were invited to attend regular interactive Town Halls where updates on a number of
business areas and initiatives was provided.
We also conducted our Annual Employee Listening Survey (MyVoice) designed to establish employee
sentiment and feedback on important topics such as Culture, Engagement, Strategy, Reward, Career
Development and Leadership. This year, FBD's results exceed the Ireland norm in 7 out of the 10
benchmarked categories. We have used the results to reflect on the effectiveness of existing
initiatives, identify possible areas of improvement and feed into initiative development for 2025 and
2026.
We continue our regular engagement with employee representative bodies sharing relevant
information and work together to address matters raised on behalf of their members, our colleagues.
The Nomination and Governance Committee receive regular updates from the Chief HR Officer
including engagement with our representative bodies.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
62
1 ESRS 2 SBM-2 45d Description of how administrative, management and supervisory bodies are informed about views and interests of affected stakeholders
with regard to sustainability-related impacts - subject to limited assurance
Director Engagement with the Workforce1
As Director of Engagement, Sylvia Cronin continues to play a key role in fostering Diversity and
Inclusion (D&I) at FBD. In 2024, she has actively engaged with the Diversity and Inclusion Committee,
on an ongoing basis.
Beyond her work with D&I, Sylvia visited multiple Branch Offices throughout the year, conducting
listening sessions with employees to better understand their perspectives, gather feedback, and
identify areas for improvement. These interactions provided valuable insights into the priorities and
concerns of the workforce.
As part of her role, Sylvia provided regular updates to the Board ensuring that employee feedback
informed key strategic decisions, including those related to employee remuneration and workplace
enhancements.
Ms Sylvia Cronin was appointed as Senior Independent Director in February 2025 and Ms Olive
Gaughan was appointed as Director for Engagement with the Workforce.
Engagement with Customers
FBD values its customers and engages to support them with their needs. In 2024, Members of our
Board and Executive Management Team took to the road for two customer site visits. By spending
time with our customers, we understand their needs better and that allows us to offer market leading
services and innovative products.
Over 2024, we engaged in communications with customer on underinsurance on Home policies where
customers were encouraged to review their sums insured. We continued to support customers by
engaging at policy renewal and encouraged all customers to review their sums insured at renewal, to
ensure they were adequately covered.
An area of focus for us in 2024 into 2025 relates to engaging with customers on the changes
introduced under the Road Traffic and Road Acts 2023 which are coming into effect on 31 March 2025.
Under this new legislation motorists are required to provide their driver number, and those of any
named drivers, to their insurer when taking out motor-insurance policies. We are highly cognisant that
we are not permitted under the new legislation to renew existing policies or incept new business
private motor policies without the provision of these numbers, and we have been proactively taking
several actions to support our consumers and create awareness of these upcoming changes. These
actions include contacting customers directly by letter, phone, email and SMS, and updating our
website introducing a dedicated webpage which provides information on the upcoming changes and
includes a mechanism where customers can submit their driver number. We are committed to making it
easy for our customers to engage with us on these new requirements and we have a dedicated team,
telephone number, email address and section on our website where our customers can engage with us
through their preferred method.
FBD has numerous channels through which it can engage with customers. FBD is available to our
customers through our nationwide branch network, by phone, online or through our partner and broker
networks. Through a number of events in the community, FBD is visible and present to our customer
base. The customer is at the heart of FBD’s strategy.
Engagement with Regulators
Through regular meetings with Board Members and senior management, the Group has an engaging
relationship with the Central Bank of Ireland, its regulator.
Engagement with Government and Industry Bodies
When requested, FBD attends Oireachtas meetings on insurance related matters. Through these
meetings and engagement with the Department of Finance, FBD engages with Government bodies.
Through attendance at Oireachtas meetings on insurance related matters the Group engages with
Government bodies.
Tomás Ó Midheach is a member of the Board of Insurance Ireland. Insurance Ireland represents the
Irish general insurance market and through this FBD engages with the wider insurance industry.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
63
1 ESRS 2 GOV-1 21b Information about representation of employees and other workers - subject to limited assurance
In relation to the impending changes under the Road Traffic and Road Acts 2023, we have actively
engaged with key stakeholders in the process including Motor Insurers’ Bureau of Ireland, Insurance
Ireland and strategic partners to ensure minimal impact for our consumers. We have also set up a
dedicated number for Gardaí to contact us.
Engagement with Wider Society and ESG
In addition, FBD spokespeople on Insurance, Farm Safety and the Claims Environment participate in
and contribute to societal debate on topical issues.
The Corporate Governance Code 2018 makes reference to Section 172 of the UK Companies Act 2006.
As FBD is incorporated in Ireland it is subject to the Companies Act 2014. The success of FBD is a
fundamental part of our Business Model and Strategy and success against our Strategy is continually
reviewed and monitored by the Board and Executive Management. Details of how FBD promotes the
success of the Company for the benefit of its members as a whole and initiatives undertaken in
respect of the environment, the community and FBD’s business relationships are outlined in the
Strategy Section on pages 98 to 99, the Environmental Section on pages 128 to 145, the Social Section
on pages 146 to 162 and the Governance section on pages 163 to 168 of our Sustainability Statement.
Annual General Meeting (AGM)
The Company’s AGM is held each year in Dublin. The 2025 meeting will be held on 8 May 2025
Who attends?
•
Directors;
•
Senior Group Executives;
•
Shareholders;
•
Company Advisers; and
•
Members of the media are also invited and permitted to attend.
What business takes place at the meeting?
•
The Group Chief Executive Officer and Group Chief Financial Officer make a presentation on the
results and performance to the meeting prior to the Chair dealing with the formal business of the
meeting itself; and
•
All shareholders present, either in person or by proxy can question the Chair, the Committee Chairs
and the rest of the Board during the meeting and afterwards.
All formal resolutions are dealt with on a show of hands. Once the vote is declared by the Chair, the
votes lodged with the Company in advance of the meeting are displayed prominently in the venue for
those present to see. Immediately after the meeting is concluded the results are published on the
Group’s website www.fbdgroup.com and also via Euronext Dublin.
The notice of the AGM is issued to shareholders at least 21 clear days in advance of the meeting.
Details will be available in due course in respect to the holding of the AGM.
Internal Control
The Board has overall responsibility for the Group’s system of internal control and for reviewing its
effectiveness. The system which operates in FBD is designed to manage rather than eliminate the risk
of failure to achieve business objectives and can provide only reasonable and not absolute assurance
against material misstatement or loss.
In accordance with the revised Financial Reporting Council (FRC) guidance for Directors on internal
control published in September 2014, “Guidance on Risk Management, Internal Control and Related
Financial and Business Reporting”, the Board confirms that there is an ongoing process for identifying,
evaluating and managing any significant risks faced by the Group, that it has been in place for the year
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
64
under review and up to the date of approval of the financial statements and that this process is
regularly reviewed by the Board.
The key risk management and internal control procedures which cover all material controls include:
•
skilled and experienced management and staff in line with fit and proper requirements;
•
roles and responsibilities including reporting lines clearly defined with performance linked to Group
objectives;
•
an organisation structure with clearly defined lines of responsibility and authority;
•
the maintenance of proper accounting records;
•
a comprehensive system of financial control incorporating budgeting, periodic financial reporting
and variance analysis;
•
a Risk Committee of the Board and a Risk Management Framework comprising a Risk Function
headed by a Chief Risk Officer, a clearly stated Risk Appetite and Risk Strategy supported by
approved risk management policies and processes;
•
an Executive Risk Committee comprising senior management whose main role includes reviewing
and challenging key risk information and to assist the Board Risk Committee, described earlier, in
the discharge of its duties between meetings;
•
IT Risk and Operational Resilience Risk Committee that reports to the Executive Risk Committee.
This Committee is comprised of Executive and Senior Management with responsibility for the
oversight of IT risks and Operational Resilience risk and the control environment in place to manage
these risks;
•
IT and Operations Management Committee reporting to the Executive Management Team;
•
the Risk Strategy, Framework and Appetite are articulated in a suite of policies covering all risk
types and supported by detailed procedural documents. Each of these documents is subject to
annual review and approval by the Board;
•
performance of an ORSA linking to risk management, strategy and capital management;
•
a Group Internal Audit function;
•
a Group Compliance function;
•
a Data Protection Officer;
•
a Board Audit Committee whose formal terms of reference include responsibility for reviewing the
adequacy and effectiveness of controls operated by Management to mitigate regulatory,
operational and financial risk;
•
a Disaster Recovery Framework is in place and is regularly tested;
•
a Business Continuity Framework is in place and is regularly tested;
•
an IT Risk Management Framework; and
•
a number of key Group policies in place include a Corporate Governance Framework, Fitness and
Probity Policy, Speak Up Policy and Code of Conduct.
The Annual Budget, Half-Yearly Report and Annual Report are reviewed and approved by the Board.
Financial results with comparisons against budget are reported to Executive Directors on a monthly
basis and are reported to the Board quarterly.
The risk management, internal control, reporting and forecasting processes are important to the Board
in the exercise of its Governance and Oversight role. The Board constantly strives to further improve
their quality. The Group has established a Speak Up Policy for Workers*, the purpose of which is to
ensure that:
•
Workers* are aware of the arrangements and protection in place for raising concerns in respect of
wrongdoing in the Group.
•
Workers* are aware that it is safe and appropriate for all employees to raise a concern.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
65
•
FBD takes appropriate measures to ensure concerns are appropriately investigated and to
safeguard workers* who:
•
Raise genuine concerns; or
•
Are the subject to an investigation; or
•
Were the subject to an investigation and where no evidence of wrongdoing was discovered.
The Policy and supporting procedures are reviewed annually and were reviewed in December 2024.
The Policy is available on the FBD Group website and all employees receive annual mandatory training.
*Workers as defined by the Protected Disclosures (Amendment) Act 2022.
Features of Internal Control in relation to the Financial Reporting
Process
The main features of the Internal Control Framework which supports the preparation of the
consolidated financial statements are as follows:
•
A comprehensive set of accounting policies are in place relating to the preparation of the interim
and annual financial statements in line with IFRS;
•
A number of policies and controls are in place to support the delivery of the Annual Report and half
yearly report including a Financial Reporting Policy and Internal Control Policy;
•
An appropriately qualified and skilled Finance team is in place operating under the supervision of
experienced management who are compliant with fit and proper requirements;
•
Appropriate financial and accounting software is in place;
•
A control process is followed as part of the interim and annual financial statements preparation,
involving the appropriate level of management review of the significant account line items, and
where judgments and estimates are made, they are independently reviewed to ensure that they
are reasonable and appropriate. This ensures that the consolidated financial information required
for the interim and annual financial statements is presented fairly and disclosed appropriately;
•
Preparation and review of key account reconciliations;
•
The Board Audit Committee members attend a series of meetings in the lead up to the annual
financial statements to consider and review the financial statements in detail and to have early
sight of key Methodologies, Uncertainties and Judgements;
•
Detailed papers are prepared for review and approval by the Audit Committee covering all
significant Key Methodologies, Uncertainties and Judgements and technical accounting issues
together with any significant presentation and disclosure matters; and
•
The Audit Committee has a number of responsibilities delegated to it under its Terms of Reference.
On an annual basis an assessment is carried out of the Committee's compliance with its Terms of
Reference.
The Board confirms that it has reviewed the effectiveness of the Group’s Systems of Internal Control
for the year ended 31 December 2024. The 2024 internal control assessment provides reasonable
assurance that the Group’s controls are effective, and that where control weaknesses are identified,
they are subject to management oversight and action plans.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
66
Nomination and Governance Report
Dear Shareholder,
On behalf of the Nomination and Governance Committee, I am pleased to outline a summary of
activities during 2024.
Board Changes during 2024
I am saddened to report that in 2024 we experienced the loss of two friends and fellow Directors Mr
David O'Connor and Mr John O'Dwyer. Prior to taking up the role of Chair of FBD Insurance plc, David
was Senior Independent Director, a role John was appointed to in August 2024. David and John
brought a wealth of experience to the Board and the Board is thankful for their contribution and
dedication to FBD. May they rest in peace.
A large focus of the Committee in 2024 was on succession. In January, Ms Kate Tobin took up the role
as Executive Director and Group Chief Financial Officer. Over 2024 we also welcomed a number of
new Independent Non-Executive Directors to the Board. Ms Olive Gaughan joined the Board in May
2024. Olive is a Fellow of the Society of Actuaries in Ireland. She is a highly experienced Actuarial
Professional and brings strong industry and commercial experience to the Board.
In September 2024 Tim Cullinan stepped down as Independent Non-Executive Director and we thank
Tim for his commitment and sound advice throughout his tenure and we wish him well in his next
endeavours. We welcomed Mr Francie Gorman, President of the Irish Farmers Association, to our
Board. Francie brings great insight, understanding and knowledge of the farming business and
community and of FBD's core customer base.
As reported in the 2023 Annual Report, the Nomination and Governance Committee in conjunction
with the Senior Independent Director at that time, led the succession planning process seeking a
suitable replacement for the Chair. Mr Jim Bergin was identified as the successful candidate for the
position of Chair of the Board and in November 2024, Jim was appointed to the Board as an
Independent Non-Executive Director. Further information of the Chair Succession can be found below.
The Nomination and Governance Committee will keep the needs and requirements of the Board under
regular review, particularly as Directors reach their full term on the Board.
Board Induction, Training and Development
FBD recognises the importance and benefit of supporting the continued development of its employees.
The Board is highly supportive of this and is committed to its own ongoing professional development.
A detailed and comprehensive induction training programme is in place for newly appointed Directors.
Ms Olive Gaughan and Mr Francie Gorman have completed their induction training and Mr Jim Bergin
is in the process of undertaking his training.
During 2024 the Board regularly reviewed its programme of training which has been developed having
given consideration to the business needs and requirements, current and emerging risks and
forthcoming changes in law and regulation. The Board and/or its Committees Directors may request
training as they may deem appropriate.
Training was provided to the Board and/or its Committees on the following areas in 2024:
•
Data Protection;
•
Reinsurance;
•
Variable Remuneration;
•
The Central Bank (Individual Accountability Framework) Act 2023 including Director duties under
Conduct Standards and Reasonable Steps;
•
Competition Law;
•
Digital Operational Resilience Act;
•
Strategy and the current Trading Environment;
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
67
•
Market Abuse Regulations;
•
IT Security including Cyber Security;
•
Investments; and
•
CSRD.
Additionally the Risk Committee received deep dive briefings on a number of key risk areas.
Three1 training workshops on the Corporate Sustainability Reporting Directive were held for the
members of the Audit Committee with the purpose of providing an overview of FBD's Sustainability
and CSRD journey to date, review the output of the Double Materiality Assessment and to further
understand the role of the Committee in CSRD. In addition to these training workshops, the Board had
received detailed presentations allowing them to select the Baseline Scenario for Climate Risk for FBD,
and had considered Corporate Advocacy initiatives where FBD could make a meaningful contribution
to initiatives that supported our customers and the wider society.
Board Succession
In 2024 the Committee and the Board reviewed the Board Succession Plan. The Committee, on behalf
of the Board, regularly consider the Board composition and tenure, its diversity and that of its
Committees along with the Board skills matrix to ensure that the Board had sufficient skills available
to it to meet its strategic objectives. This assists the Committee in reviewing succession from a short,
medium and long term perspective and in identifying any skills and diversity requirements that would
be of benefit to the Board.
The Group extensively used an Independent executive search firm, Odgers Berndtson, to assist it in
the search for new independent Non-Executive Directors in line with Board requirements.
Board succession is supported by the Board Recruitment, Succession and Diversity Policy and Board
Conflicts of Interest Policy.
Chair Succession
As disclosed in the 2023 Annual Report and announced in November 2024, Liam Herlihy will retire as a
Director and Chair of FBD at the conclusion of this year’s AGM. In order to conduct an effective and
orderly Chair succession process, as well as to assist the then newly appointed Group Chief Financial
Officer with their integration to that role, the Board determined it was in the best interests of the
Company and the FBD Group that Mr Herlihy remain in his role as Chair until the 2025 AGM.
The Board instructed the Nomination and Governance Committee, led by the Senior Independent
Director at that time, to engage in an extensive succession planning process. The Committee prepared
a detailed specification for the role specifying the skills, knowledge, experience and attributes
required.
In November 2024 the Board announced that, following an extensive succession process and careful
consideration, Jim Bergin had been identified to succeed Liam Herlihy as Chair immediately following
the 2025 AGM, subject to re-election by shareholders. Mr Bergin was also appointed as an
Independent Non-Executive Director in the intervening period. During this period, Mr Herlihy and Mr
Bergin have worked together to ensure an effective and orderly transition of responsibilities, enabling
Mr Bergin to receive an appropriate induction. This has allowed Mr Bergin to have time to familiarize
himself with both the business and the Board before taking over the role of Chair.
Mr Bergin brings a wealth of knowledge and expertise to the Board, demonstrated by his highly
successful career in the agricultural sector over the past 40 years. Under Jim’s sponsorship, FBD Group
is assured to have the appropriate wealth of skills and experience to build an ambitious future and we
wish him every success in this role.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
68
1 ESRS 2 GOV-1 23a Information about sustainability-related expertise that bodies either directly possess or can leverage - subject to limited assurance
Board Diversity Report
Board Recruitment and Diversity Policy
Board Diversity is supported by the Board Recruitment, Succession and Diversity Policy and reflects
our continued commitment to promote a diverse and inclusive culture, valuing diversity of thought,
skills, experience, knowledge and expertise including of educational and professional backgrounds,
alongside diversity criteria such as gender, ethnicity and age. As set out in the Policy all Executive
appointments and succession plans are made on merit and objective criteria, in the context of the
skills and experience that are needed for the Board to be effective and to promote ‘diverse thinking’.
The objective of the Policy is to attract, recruit, and retain individuals with diverse backgrounds, skills,
and competencies who individually and collectively enhance the service FBD provides to its customers
and contribute to the successful delivery of FBD’s strategy and objectives. The Board Recruitment,
Succession and Diversity Policy is reviewed annually by the Nomination and Governance Committee
and recommended to the Board for approval. This Policy is consulted and followed for each Board
appointment.
Board Diversity
The Board believe that diversity and inclusion are key to creating an environment that fosters
innovation, employee engagement, creativity and the collaboration required to support and drive the
Board agreed strategy 2025 to 2029.
The Board fully supports and encourages the leadership team in promoting an inclusive and equal
employment work environment for our employees and the customers we serve. On behalf of the Board,
the Committee regularly receive updates on Diversity and Inclusion including the work of our Diversity
and Inclusion Committee. The Board welcomes FBD's achievement of the Gold accreditation for being
investors in Diversity through the Irish Centre for Diversity and we are committed to maintaining this
accolade.
FBD is committed to having a diverse board, to achieving the target set in this regard and to ensuring
an open and fair recruitment process. The Board has set a target to achieve 40% female membership
by 31 December 2025. Over 2024, female membership on the Board has grown and at 31 December
2024 the Board had a female membership of 45%.
The Board is mindful that diversity is not limited to gender. FBD recognises and supports the benefits
of having a diverse Board of Directors which can provide the range of perspective for insight and
challenge which enhances collective decision-making. For Board appointments, FBD works in
partnership with external professional executive search consultancy firms who are aware of FBD's
diversity ambitions. A selection of candidates is made on an unconscious bias basis and a shortlist of a
diverse balanced pool of candidates is gathered within the ability of the executive search firm and the
requirements of the Board at that time. Consideration will be given to age, ethnicity, and other
demographics of FBD’s customer and colleague base together with relevant composition
benchmarking data to inform the design of the role profile while taking into account the specific needs
of the Board at that time. FBD is an Irish insurer serving the Irish market. The Nomination and
Governance Committee is aware of the 2022 Irish Census results for Migration and Diversity and notes
that there is a limited diverse pool of ethnic minorities available to it in the Irish market in terms of
succession targets and the necessary skills required by the Board at any one time.
The breakdown of Gender Diversity, Skills and Experience, both locally and internationally, of FBD's
Board Committee can be found on page 47 for the Audit Committee, page 52 for the Risk Committee,
page 56 for the Nomination and Governance Committee and page 59 for the Remuneration
Committee.
The Board is committed to progressing its diversity and while all appointments to the Board and
Executive Management will have due regard to diversity, they will be made on merit, ensuring that the
skills, experience and traits noted by the Board as being of particular relevance at any time are present
on the Board and included in any planned refreshment. The Board is mindful that it maintains the
necessary skills and experience to deliver on the Board agreed strategy in the interests of the
shareholders and FBD's wider stakeholders.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
69
Board Diversity, Experience and Skills1
The skills and experience identified by the Board as critical to its composition and that of its
Committees at this time are outlined below. This was reviewed in December 2024 and the Nomination
and Governance Committee deemed the listed diverse range of skills as of sufficient breath for the
Board to carry out its role in promoting the long-term sustainable success of the Group, generating
value for shareholders and contributing to wider society.
The percentage of the Board having the requisite skills and experience are as follows:
Accounting and Audit
45 %
General Insurance Industry Experience
54 %
Actuarial
18 %
Corporate Finance
27 %
Strategic Planning
64 %
Farming and Agri-Industry
36 %
Financial Services
64 %
Operations / Change Management
36 %
Distribution / Commercial
36 %
Governance, ESG, and Subsidiary Governance
73 %
Risk Management
73 %
Regulatory and Compliance
64 %
Information Technology
36 %
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
70
1 ESRS 2 GOV-1 21c Information about member's experience relevant to sectors, products and geographic locations of undertaking - subject to limited assurance
ESRS 2 GOV-1 21d Percentage of members of administrative, management and supervisory bodies by gender and other aspects of diversity - subject to limited
assurance
ESRS 2 GOV-1 23a Information about sustainability-related expertise that bodies either directly possess or can leverage - subject to limited assurance
ESRS G1 GOV-1 5b Disclosure of expertise of administrative, management and supervisory bodies on business conduct matters - subject to limited assurance
Diversity of Experience
0
20
40
60
80
100
Ireland
UK
Europe
International
Diversity of Ethnicity
0
20
40
60
80
100
White British or other White
Mixed / Multiple Ethnic Groups
Asian / Asian British
Black / African / Caribbean / Black...
Other Ethnic Group, including Arab
Not Specified / Prefer not to say
The Board values the major contribution which a mix of backgrounds, skills and experience brings to
the Group and sees merit in increasing diversity at Board level in achieving the Group’s strategic
objectives. Differences in background, skills, experience and other qualities, including gender and
ethnicity, are always considered and formally discussed at the Nomination and Governance Committee
in determining the optimal composition of the Board, the principal aim being to achieve an appropriate
balance between them.
The Board continues to comprise of a mix in backgrounds, experience and gender in line with the
Policy. As at the date of this report, the Board was comprised as follows:
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
71
Tenure of Director
45.5%
36.4%
9.1%
9.1%
0-2 years
3-6 years
7-9 years
9+ years
Diversity of Age
9.1%
36.4%
45.4%
9.1%
70+
60-70
50-60
40-50
Executive / Non-Executive
18.0%
82.0%
Executive
Non-Executive
Board Gender Balance
55.0%
45.0%
Male
Female
The gender balance of those in the senior management and their direct reports
Gender Female
Gender Male
Executive Management Team
30 %
70 %
Direct Reports
50 %
50 %
FBD is a proud member and supporter of the ‘30% Club’. This International organisation was
established with a goal of achieving a better gender balance on Boards and in Executive Leadership.
As at 31 December 2024, 45% of the Board of Directors of FBD Holdings plc is female. 30% of
Executive level and 46% of manager/specialists level in FBD are female. 60% of FBD’s overall
employees are female. The average female gender representation on the Board throughout 2024 was
42.7% 1.
In 2022 FBD signed up to the Women in Finance Charter and has an ambition to see more female
representation at all levels.
Board Evaluation
In line with the Code, on an annual basis, the Board evaluates its performance, the performance of its
Committees, the Chair and individual Directors. The Board is committed to its continual improvement
and development and the Board Evaluation for 2024 was internally carried out. The next external
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
72
1 ESRS2 GOV-1 21d Board's gender diversity ratio - subject to limited assurance
Board evaluation will be carried out for the year ending 31 December 2025.
The Internal Board Evaluation reflected the provisions of the Code and the Central Bank of Ireland's
Corporate Governance Requirements for Insurance Undertakings 2015.
The Board Evaluation process was led by the Board Chair with the support of the Senior Independent
Director and the Company Secretary. The format of the evaluation included the following:
Individual Director Evaluation
•
Each Director completed a Director Self-Evaluation Questionnaire.
•
The Board Chair met individually with each Director to review and discuss performance and this
was aided by the Director Self-Evaluation Questionnaire.
•
Feedback was provided by the Chair to each Director.
Board Chair Evaluation
•
The Non-Executive Directors are responsible for the performance evaluation of the Board Chair.
The evaluation of the performance of the Board Chair was led by the Senior Independent Director.
•
The Senior Independent Director met with the Board Chair to discuss their performance and this
was supported by a number of performance related questions.
•
The Senior Independent Director reported to the Board in the absence of the Board Chair and the
Board evaluated the overall performance of the Chair.
•
Feedback was provided to the Chair through the Senior Independent Director.
Board Committee Evaluation
•
Each Committee Member completed a Committee Evaluation Questionnaire which rated the
Committee in a number of areas.
•
A formal report was compiled based on the feedback from the Committee Members and was
reviewed in the first instance by the Committee Chair.
•
The report was presented to the Committee and formed part of its annual reporting obligation to
the Board.
Board Evaluation
Each Director completed a Board Evaluation questionnaire which rated the Board in a number of areas.
The results were compiled into a report, which included areas identified for improvement, and this was
reviewed in the first instance by the Board Chair.
The report was presented to the Board for review and discussion along with proposed actions that
addressed feedback from Directors.
Overall the 2024 Board evaluation assessment noted that the Board continued to operate as a strong
Board with positive dynamics between the Board and the Executive Management. There remained
good healthy debate amongst Board members and respectful challenge of management.
A number of recommendations have been made to build on this strong foundation and these will be
addressed over the remainder of 2025.
Liam Herlihy
On behalf of the Nomination and Governance Committee
6 March 2025
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
73
Report on Directors’ Remuneration
Introductory Letter from the Remuneration Committee Chair
Dear Shareholder,
On behalf of the Remuneration Committee and the Board, I am pleased to present the Directors
Remuneration Committee Report for the year ended 31 December 2024. This report outlines the
operation of the Director’s Remuneration Policy in 2024, emphasising our commitment to compliance
with all relevant remuneration and legislative requirements.
Our focus on benchmarking with industry peers and maintaining alignment with our strategic goals has
guided our decisions on salary, bonus, and long-term incentive plan (LTIP) outcomes. This year, our
priorities included ensuring that executive compensation remains aligned with shareholders interests,
business strategy, and broader stakeholder expectations. Moreover, we carefully considered the
ongoing demands of integrating sustainable principles into our remuneration framework to reflect the
company’s long-term objectives.
Changes to Board
Effective 1 January 2024, Kate Tobin has assumed the role of Group Chief Financial Officer and
Executive Director, succeeding John O'Grady following his retirement.
Our fellow Director David O'Connor sadly passed away in April 2024 and John O'Dwyer sadly passed
away in November 2024.
In 2024, Olive Gaughan joined the Board in May, followed by Francie Gorman in September and Jim
Bergin in December. These appointments reflect our ongoing commitment to enriching the Board with
diverse expertise and leadership to support FBD's continued growth and success.
Remuneration in Context
In making decisions in relation to executive directors' remuneration outcomes in 2024, the Committee
took into account key measures of the Group's performance as well as the experience of wider
stakeholders as outlined below.
Strategic Priorities
In 2024, we progressed our strategy towards being a digitally enabled data enriched organisation
which delivers excellent customer and employee experience.
•
Our Customer: We have a complete picture of them, understand them and deliver a proposition
they value;
•
Our People: Foster individual and organisational effectiveness.
•
Wider Society and ESG: We are recognised as the local insurer, supporting and sustaining our local
communities. Delivering on our sustainability commitments and supporting our customers in theirs;
•
Delivering Measured Profitable Growth: Through a sharp focus on value, growth and capital
management;
•
Continuous Improvement: Be better tomorrow than we are today. Create capacity while enhancing
our customer value and employee experience.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
74
Financial Performance
•
Profit before taxation of €77.1m in 2024;
•
Gross Written Premium of €460m in 2024 representing at 13%1 increase in the year.
•
Growth in Policy Count of 6.3% in 2024;1
•
Combined Operating Ratio of 84.9% in 2024;
•
Total investment return of 4.0% in 2024.
We continue to maintain our underwriting discipline delivering a healthy underwriting profit in 2024.
Our focus has been on driving value for our stakeholders, and we have made positive progress in this
regard. Our ongoing focus and commitment in meeting the needs of our customers and the provision
of a personalised service continue to play a significant role in the performance of the business. For
further information on the 2024 results please see the Review of Operations on pages 10 to 14.
Our Employees
At FBD, we strive to be a great place to work by delivering an improved employee experience through
our People Strategy. We focus on enhancing various aspects of the employee journey, including
workplace culture, development opportunities, benefits, and work life balance. These efforts create a
more engaging and fulfilling environment for our employees, establishing FBD as an employer of choice
for key talent recruitment.
In 2024, we achieved Gold Accreditation from Investors in Diversity (IiD) through the Irish Centre for
Diversity, building on our 2023 Silver Accreditation. This milestone underscores our ongoing
commitment to fostering a diverse and inclusive workplace. Our culture celebrates the unique
differences among colleagues, recognising the creativity, innovation, and diversity of thought that this
richness brings to our organisation. We promote a nurturing environment where everyone can feel
valued, respected and empowered. Moreover, we remain dedicated to ensuring that promotion and
recruitment practices are fair and objective, rewarding employees appropriately for their contributions
to the business.
FBD continues to enhance hybrid working arrangements, with employees working two days per week
in the office, and in 2024, we extended hybrid working to our branch network. This initiative supports
flexibility and productivity across our operations and will be reviewed annually to ensure effectiveness
and alignment with the market demands.
Our wellbeing programme saw further enhancements, emphasising mental health, nutrition, and work-
life balance. Gender pay remains a key focus, with ongoing efforts to improve gender balance in senior
roles within the organisation. Looking ahead to 2025, a cornerstone of our strategy is “Empowering our
People”, delivering continuous improvement in Learning & Development, Career & Personal
Development, and our Employee Value Proposition. We have launched a comprehensive plan to
support our employees with career path development, technical skills, and sales training, backed by
data-driven insights.
To recognise our employees’ contributions:
•
A pay pot of 4.0% of base salary was awarded in April 2024, factoring in performance, current
position on the salary range, and pay grade;
•
A €1,000 voucher was also awarded in April 2024 to all employees to recognise their contribution
to our achievements in 2024;
•
A bonus pot of 120% of 'on target' bonus was given in April 2024, reflecting individual performance
and the company's successful delivery of business performance conditions for 2023.
•
A bonus pot of 126% of on target bonus was given in April 2024 in respect of CEO and CFO and
Executive Management Team reflecting performance and the company's successful delivery of
business performance conditions and progress on strategic objectives in 2023.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
75
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.
Paying for Performance
The Committee ensures that remuneration metrics are closely aligned with the Group's long-term
interests, business model, and strategic objectives. This alignment is reinforced by setting
appropriately ambitious performance targets that drive sustainability principles into our remuneration
framework, ensuring that executive compensation reflects the Company's commitment to achieving its
long-term environmental, social, and governance (ESG) goals while delivering enduring value for all
stakeholders.
The Remuneration Committee has reviewed performance against the 2024 Annual Bonus Plan targets
and approved the 2024 bonus payments.
Following Combined Operating Ratio Performance of 84.9%, 5% growth in Farmer policy count, 4.5%
growth in Business policy count, 4% growth in Retail policy count, 39% growth in Retail Partner policy
count, as well as a goal to Lead Culture Change, this resulted in a 2024 bonus €656k or the CEO and
€184k for the CFO. 30% of the bonus will be deferred into FBD shares for three years.
We reviewed the LTIP award granted in 2022 against the applicable performance conditions and the
formulaic outcome was 87.5%. However the Committee considered the holistic performance over the
period (including the points outlined below) and agreed it was appropriate to apply discretion to
adjust the vesting outcome to 100%.
•
Continued success in culture and strategic metrics aligned to our stakeholders. For example we
achieved gold accreditation from the Irish Centre for Diversity ahead of its anticipated schedule.
•
A strong governance framework is in place to supervise and manage risk and compliance within the
organisation to reliably achieve and exceed business objectives.
•
Significant outperformance on ROTE metric while maintaining strong retention and achieving
growth in policy count and premium over the period.
2024 Remuneration Policy and Implementation
The updated Remuneration Policy was approved by shareholders at the 2023 AGM and received
99.98% support for the votes cast. We will continue to operate under this Policy for 2025.
We have also reviewed and approved the 2025 Annual Bonus structure to ensure it is aligned to our
strategy, our shareholder and all stakeholder requirements. We also reviewed and approved the
metrics and targets for LTIP to be granted in 2025. Further detail on the implementation of the Policy
for 2025 is set out later in this report.
In approving the Remuneration Framework and performance conditions for 2025 the Committee
considered the following principles:
•
Motivate and reward executives to perform in the long-term interest of shareholders;
•
Attract and retain executives of the highest calibre;
•
Reflect the strategy of the Company for all our shareholders with a strong focus on Culture, ESG
and our People;
•
Provide an appropriate blend of fixed and variable remuneration and short and long-term
incentives.
Shareholder Dialogue and Support
Section 1110N of Companies Act 2014 (EU Shareholder Rights Directive), requires a vote on the Report
on Directors’ Remuneration at the AGM on an advisory basis. At the 2024 AGM, this report received
100% support from shareholders.
The Committee requests shareholders to consider and approve the annual remuneration report set out
on the following pages at the 2025 AGM.
Richard Pike
Chair of the Remuneration Committee
6 March 2025
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
76
Role of Remuneration Committee1
Responsibility for determining the levels of remuneration of the Executive Directors has been
delegated by the Board to the Remuneration Committee whose membership is set out in the
Corporate Governance Report.
In framing remuneration strategy, frameworks and policies, the Committee gives full consideration to
the principles and provisions of the Central Bank of Ireland Corporate Governance Requirements for
Insurance Undertakings 2015 and UK Corporate Governance Code 2018 as well as the update to the
EU Shareholder Rights Directive in 2020. It also takes into account the long-term interests of
shareholders, investors and other stakeholders of the Group.
The duties of the Remuneration Committee are to determine Directors Remuneration Policy and
practices by reviewing performance structures, performance metrics, target setting and application of
discretion.
The Remuneration Committee also reviews overall workforce remuneration and related policies and
alignment of incentives and rewards with culture and takes these factors into account when setting
the policy for Executive Director Remuneration.
The Committee considers and reviews the Remuneration Policy and are in agreement that it is
operating as intended in respect of Group performance quantum.
In determining outcomes under the bonus and the LTIP, the Remuneration Committee considers
performance achieved during the year and satisfies themselves that the incentive outcomes were
appropriately aligned with the extent to which the Group met its strategic goals and the shareholder
experience.
External Advice
Deloitte, following their appointment in 2023, provided advice to the Remuneration Committee in 2024
and the total fees paid were €63,598. Following a tender process Deloitte have been selected to
succeed PwC as statutory auditor and PwC will resign as external auditors after the completion of the
2025 audit for the Group following a period of 10 years. Deloitte has been discharged as advisors to
the Committee to ensure that any prohibited advisory services have ceased with a one-year gap and
as a result Willis Towers Watson (WTW) has been appointed as our Remuneration Advisors for 2025.
Remuneration Policy2
The current Remuneration Policy was approved by shareholders at the 2023 AGM and received 99.98%
support of the votes cast. This section sets out the main components of the Policy. The full Policy as
approved by shareholders can be found in the 2023 Annual Report which is on the Company’s website.
Remuneration arrangements are determined throughout the Group based on the same principle – the
reward should be sufficient in order to attract, retain and motivate high performing individuals who are
critical to the future development of the Group. The fair distribution of our Group’s profits is an
integral part of our corporate culture as we wish to reward our employees’ contribution to the success
of the Group.
The performance measures ensure everyone is focused on delivering the same business priorities and
that employees share in the success if the business strategy is delivered.
It is the policy of the Group to provide all members of executive management, middle management
and employees of the Group with appropriate remuneration and incentives that reward performance.
The aim is to ensure reward aligns to Group objectives in terms of profitability built on good customer
outcomes together with balanced and responsible assumption of risk. This is done by ensuring that the
principles of sound and prudent risk management are fully reflected and that excessive risk taking is
neither encouraged nor rewarded. The appropriateness is assessed with reference to internal and
external sources.
The Committee has aimed to build simplicity and transparency into the design and delivery of our
Remuneration Policy, which was approved by shareholders at the 2023 AGM. The remuneration
structure is simple to understand for both participants and shareholders and is aligned to the strategic
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
77
1 ESRS 2 GOV-3 29e Description of level in undertaking at which terms of incentive schemes are approved and updated - subject to limited assurance
2 ESRS 2 GOV-3 29a Description of key characteristics of incentive schemes - subject to limited assurance
priorities of the business. We aim for our disclosures to clearly explain the design of our arrangements
and the way that they have been operated so that they can be fully understood by all stakeholders.
When determining Executive Director Remuneration policy and practices, all of the following are
addressed:
•
Clarity: Remuneration arrangements should be transparent and promote effective engagement with
shareholders and the workforce;
•
Simplicity: Remuneration structures should avoid complexity and their rationale and operation
should be easy to understand;
•
Risk: Remuneration arrangements should ensure reputational and other risks from excessive
rewards, and behavioural risks that can arise from target-based incentive plans, are identified and
mitigated;
•
Predictability: The range of possible values of rewards to individual Directors and any other limits
or discretions should be identified and explained at the time of approving the policy;
•
Proportionality: A significant part of an executive’s reward is linked to performance with a clear line
of sight between business performance and the delivery of shareholder value;
•
Alignment to Culture: The incentive arrangements and the performance measures used are strongly
aligned to those that the Board considers when determining the success of the implementation of
the Company’s purpose, values and strategy.
The Committee has the discretion to override formulaic outcomes and enable recovery and
withholding of bonuses where appropriate. The Committee will continue to monitor corporate
governance developments and evolving best practice and take these into account in the Policy and its
implementation.
The Policy includes a number of points in its design, the aim of which is to mitigate potential risk:
•
Defined limits on the maximum opportunity levels under incentive plans;
•
Provisions to allow malus and claw back to be applied by the Remuneration Committee where
appropriate;
•
Performance targets calibrated at appropriately stretching but sustainable levels in line with our
business strategy so that executives are incentivised to deliver performance but not at the
expense of going beyond the Group ‘s risk appetite;
•
Shareholding requirements ensure alignment of interests between Executive Directors and
shareholders and encourage sustainable performance;
•
A significant proportion of any Executive Director bonus will be deferred into FBD shares for a
period of three years. This practice would allow the Committee to have flexibility to apply malus
and claw back if circumstances warranted; and
•
Persons subject to the Remuneration Policy shall commit to not using any personal hedging
strategies or remuneration and liability-related insurance which would undermine the risk alignment
effects embedded in their remuneration arrangement.
We aim for our disclosure to be clear to allow shareholders to understand the range of potential
values which may be earned under the remuneration arrangements. All incentive arrangements have
defined and disclosed limits on pay out / award levels.
A significant proportion of Executive Director Remuneration arrangements is share-based and we also
require significant holding of shares which ensures that remuneration outcomes are closely aligned to
shareholder returns. For example, the Group Chief Executive Officer is required to build and maintain a
shareholding equivalent to two times the annual salary.
It is also the policy of the Group to provide a remuneration framework that attracts, motivates and
rewards Executives of the highest calibre who bring experience to the strategic direction and
management of the Group and who will perform in the long-term interests of the Group and its
shareholders.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
78
As part of our annual remuneration cycle a comprehensive analysis is completed in respect of
comparison of changes to salary, benefits and annual bonus for Executive Directors, Senior
Management and all employees. A gender pay gap comparison and gap analysis is also completed in
respect of both pay and bonus around total workforce remuneration.
We are committed to ongoing and constructive engagement with our employees and use a number of
channels to support our engagement process in order to incorporate their views into our business
activities.
Reward Philosophy
At FBD, our reward philosophy is grounded in ensuring competitiveness while maintaining cost
stability. We leverage up-to-date benchmarking data from WTW and PwC to align our reward offerings
with the Market Median, ensuring our compensation packages remain attractive and competitive
within the industry.
We are committed to creating pathways for individuals to grow their earnings through performance-
based incentives and career advancement opportunities. In addition, we continually review our
benefits portfolio, exploring cost-effective enhancements that demonstrably improve employee
retention and performance. This approach ensures our rewards strategy remains both effective and
sustainable.
Addressing Key Stakeholders Needs
FBD is committed to maintaining openness and transparency in its remuneration arrangements for all
employees. As part of this commitment, we present the Report on Directors’ Remuneration at the AGM
each year for an advisory vote, ensuring alignment with shareholder expectations. The FBD
Performance Share LTIP Plan, approved by shareholders at the AGM on 5 May 2018, reflects this
ongoing dedication to transparency and stakeholder engagement.
As part of our regular interaction with investors we answer questions that they may have on
remuneration arrangements and take into consideration views expressed in the formulation of policy
and setting appropriate performance conditions. In addition, we engage with investor advisory services
about any concerns they may have. We have listened to our investors and their feedback in respect of
the importance of balance between growth and profitability. The Remuneration Committee have taken
this feedback into account when setting appropriate performance conditions for 2025.
Among our key stakeholders is Farmers Business Development plc and as FBD's largest shareholder
they have held and will continue to hold a seat on the Board which benefits the Group as they share
knowledge in respect of our largest customer base.
To address key stakeholder needs and support ongoing engagement, FBD published the Gender Pay
Gap Report in December 2024, for the third year in a row, highlighting progress and outlining
strategies to close the gap as set out below in our key updates for 2024.
Our Director of Engagement Sylvia Cronin also engaged throughout the year with our employees and
gathered feedback which she shared with the Board and Committee which enabled the Remuneration
Committee to make informed decisions in respect of employee remuneration.
FBD also has a programme of investor relations activities where we engage with shareholders in order
to enhance bi-lateral communication by fostering objective orientated dialogue with shareholders.
The Committee considers remuneration for all employees and is satisfied that pay arrangements are
appropriate.
Key Updates in 2024
We have strengthened implementation of the policy by integrating improved communication
initiatives, heightened transparency measures, and a sharper focus on sustainability-driven metrics.
These updates align our remuneration framework with the Group’s evolving strategic objectives and
the expectations of our stakeholders.
To foster a deeper understanding of our reward structure and ensure transparency, we introduced:
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
79
•
Reward Information Sessions: Hosted by HR throughout the year, these sessions offer employees a
comprehensive overview of FBD’s reward philosophy. Topics include the structure of our bonus
schemes, pay increments, and the pay grading system for each job family.
•
Monthly Reward Clinics: Employees can engage in one-on-one discussions to address personal
reward-related queries, ensuring clarity and addressing individual concerns effectively.
•
Roadshows Across Functions and Locations: These interactive events provide detailed updates on
key topics such as career progression, reward programmes, development opportunities, wellness
initiatives, diversity, inclusion, and speak up channels. This approach supports employees at every
stage of their employee journey with FBD.
The following table sets out the key elements of the Remuneration Policy for Executive Directors, their
purpose and how they link to strategic rationale for 2024.
Element and link to strategy
Policy and operation 2024
Base Salary (fixed remuneration)
To help recruit and retain senior experienced Executives
Base salaries are reviewed annually with effect typically
from 1 April taking the following factors into account:
•
The individual’s role and experience
•
Group performance
•
Personal performance
•
Market practice and benchmarking
Although salaries are reviewed annually there is no
automatic right of any Executive to receive a salary
increase.
Element and link to strategy
Policy and operation 2024
Benefits (fixed remuneration)
To provide market competitive benefits
Benefits provided include motor allowance and an agreed
percentage contribution to health and other insurance
costs.
Element and link to strategy
Policy and operation 2024
Pension Provision (fixed remuneration)
To provide market competitive benefits and reward
performance over a long period, enabling Executives to
save for retirement
Since 2020, the Remuneration Policy ensures that all newly
appointed Executive Directors receive defined contribution
pension benefits (or equivalent cash in lieu), in line with
existing scheme arrangements available to the wider
workforce.
One Executive Director's defined contribution pension rate
was not aligned with the rate in operation for the majority
of the workforce, due to existing contractual
arrangements. He has now retired as indicated in last
year's report and from 1st January 2024, all Executive
Director’s pensions are in line with the wider workforce.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
80
Element and link to strategy
Policy and operation 2024
Annual Performance Bonuses (variable remuneration)
To reward achievement of Group targets, personal
performance and contribution
Annual bonus is based on stretching performance
conditions set by the Remuneration Committee at the
start of the year. The maximum opportunity level under
the Policy for the Group Chief Executive Officer is 120% of
base salary and 100% of base salary for other Executive
Directors. In a given year, the Committee may determine
that a maximum opportunity level below the above Policy
levels will be operated.
Annual bonus outcomes will be determined based on
performance against Group financial targets and the
achievement of defined individual strategic objectives. The
Remuneration Committee will determine the performance
measures, their weightings and the calibration of targets
each year and will clearly disclose these in the
Remuneration Report.
Financial targets will determine the majority of the bonus.
Financial targets will be set in a manner which will
encourage enhanced performance in the best interests of
the Group and its shareholders and will be approved by
the Remuneration Committee.
In addition, if annual Group profit before tax does not
reach a minimum level, to be determined annually by the
Remuneration Committee after the budget has been
approved, then the bonus may be revised downwards
potentially to zero, the ultimate discretion over which
rests with the Remuneration Committee following
consultation with the Chief Executive Officer.
Individual performance will be assessed against agreed
performance objectives, which will include a risk objective
to ensure that all employees identify, evaluate and
mitigate and control risks as part of our overall objectives
to meet the organisation’s strategic goals.
The Remuneration Committee has the discretion to
override formulaic outcomes in circumstances where it
judges it would be appropriate to do so. Any such
discretion would be fully disclosed in the relevant Annual
Report.
Any bonus payments are subject to the potential for the
Remuneration Committee to apply provisions to withhold,
reduce or require the repayment of awards for up to two
years after payment if there is found to have been (a)
material misstatement of the Group's financial results or
(b) gross misconduct on the part of the individual.
30% of any executive bonus will be deferred into FBD
shares for a period of three years. This practice will allow
the Committee to have flexibility to apply clawback if
circumstances warranted.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
81
Element and link to strategy
Policy and operation
Long Term Incentives - the FBD Performance Share Plan (variable remuneration)
To align the financial interests of Executives with those of
shareholders
The Group Performance Share Plan (LTIP) was approved by
shareholders in 2018. Under the LTIP, the Remuneration
Committee may, at its sole discretion, make conditional
awards of shares to Executives.
Conditional awards of shares under the LTIP are limited to
10% in aggregate with any other employee share plan of
the Company's issued ordinary shares of €0.60 each over
a rolling 10 year period. The market value of shares which
are the subject of a conditional award to an individual may
not, in any financial year, normally exceed 150% of the
participants base salary as at the date of the grant.
The Remuneration Committee set performance conditions
each year, selecting appropriate metrics based on key
strategic priorities. The period over which the performance
conditions applying to a conditional award under the LTIP
are measured may not be less than three years. The extent
to which a conditional award may vest in the future will be
determined by the Remuneration Committee by reference
to the performance conditions set at the time of the
reward.
These conditions are designed to ensure alignment
between the economic interest of the plan participants
and those of shareholders. Different conditions, or the
same conditions in different proportions, can be used by
the Remuneration Committee in different years under the
LTIP rules, provided that the Committee is satisfied that
they are challenging targets and that they are aligned
with the interest of the Group's shareholders.
Consistent with prior periods, the LTIP rules allow the
Remuneration Committee (at its sole discretion) to make
awards which may be subject to an additional post vesting
holding period. Awards will vest after three years once
applicable performance conditions have been achieved
and the vested shares (net of tax) will be required to be
held for a further two year period to provide continued
alignment with shareholders. The Remuneration
Committee has the discretion to override formulaic
outcomes in circumstances where it judges it would be
appropriate to do so and any such discretion will be fully
disclosed in the relevant annual report.
The LTIP includes provisions that allow the Remuneration
Committee to withhold, reduce or require the repayment
of rewards for up to two years after vesting (i.e. up to five
years after grant) if there is found to have been (a)
material misstatements of the Group's financial results or
(b) gross misconduct on the part of the award holder.
Share Ownership Policy
The Group incentivises its Executive Directors and Senior and Middle Management with equity based
awards under the Group’s shareholder approved share schemes. Central to the philosophy underlying
awards is the goal of aligning the economic interests of those individuals with those of shareholders.
Executives are expected to maintain a significant long-term equity interest in the Group. The
requirement, which is set out in a policy document by the Remuneration Committee, approved and
reviewed annually, is to build and retain a valuable shareholding relative to base salary, at a minimum,
as noted hereunder.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
82
Executive
Share ownership requirement
Group Chief Executive Officer
2 times annual salary
Other Executive Directors
1.5 times annual salary
Until such time as the requirement has been met, Executive Directors are precluded from disposing of
any shares issued to them under the group share schemes.
Executive Directors have a post employment shareholding requirement for at least two years at a level
equal to the lower of the shareholding requirement immediately prior to departure or the actual
shareholding on departure.
Recruitment Policy
When recruiting new Executive Directors, the policy is to pay what is necessary to attract individuals
with the skills and experience appropriate to the role being filled, taking into account remuneration
across the Group, including other Senior Executives as well as benchmarking against the financial
services industry.
Base salary levels will be set in consideration of the skills, experience and expected contribution to the
new role, the current salaries of other Executive Directors in the Group and current market levels for
the role.
The Remuneration Committee has determined that the level of pension contribution for any newly
appointed Executive Director will be set in line with levels in operation for the majority of the
workforce, as is the case with all employees.
Other fixed benefits will be considered in light of relevant market practice for the role and the
provisions in place for Executive Directors.
In exceptional circumstances or where the Remuneration Committee determines that it is necessary
for the recruitment of key executives, the Remuneration Committee reserves the right to offer
additional cash and/or share-based payments. Such payments may take into account remuneration
relinquished when leaving the former employer and would reflect the nature, time horizons and
performance requirements attached to the remuneration. The Remuneration Committee may also grant
share awards on hiring an external candidate to buy out awards which will be forfeited on leaving a
previous employer.
For an internal appointment, the Remuneration Committee reserves the right to offer additional cash
and/or share-based payments on an internal promotion when it considers this to be in the best
interests of the Group and its shareholders.
Service Contracts
The service contract for the Group Chief Executive Officer and the Group Chief Financial Officer
provide for the following periods of notice of termination of employment;
Executive
From
Company
From CEO/
CFO
Tomás Ó Midheach CEO
12 Months
6 Months
Kate Tobin CFO
6 Months
6 Months
Termination Payments
Termination payments will be related to performance achieved over the whole period of activity and
designed in a way that does not reward failure.
Bonus awards will generally be pro-rated to reflect the performance period, which was worked, and
the performance outcomes achieved, although the Remuneration Committee retains discretion to dis-
apply such pro-ration where it would be appropriate in the circumstances.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
83
In the event of an Executive Director leaving before an LTIP award vests for reasons other than death,
redundancy, injury, ill health or disability retirement with the agreement of the Remuneration
Committee or any other reason approved by the Remuneration Committee, the awards of the
Executive Directors will lapse, except that the Remuneration Committee may at any time prior to
vesting, in its absolute discretion revoke any determination to permit awards to vest where an
Executive Director breaches a protective covenant.
Non-Executive Director Remuneration
The remuneration of the Non-Executive Directors is determined by the Board and reflects the time
commitment and responsibilities of their role. In setting this level, the Board has regard to the fees
payable to the Non-Executive Directors of the other Irish publicly listed companies and also to the
developments and policy for the remuneration of the employees in the wider Group.
Non-Executive Directors receive a basic fee. Additional fees are paid for acting as Senior Independent
Director, being a member of and/or chairing Board Committees. These fees are reflective of their
added responsibilities and time commitment.
Non-Executive Directors are not members of the Group's pension schemes and are not eligible for
participation in the Group's long-term incentive schemes.
Derogation from Remuneration Policy
The Remuneration Committee intends that remuneration arrangements will operate in accordance with
the above Remuneration Policy for a four-year period or until an amended Remuneration Policy is put to
shareholders for approval. The European Union (Shareholders' Rights) Regulations 2020 allow for the
potential for a temporary derogation from the Remuneration Policy where doing so is necessary in
exceptional circumstances, to serve the long-term interests and sustainability of the traded plc as a
whole or to assure its viability.
By definition, it is not possible to fully list all such exceptional circumstances, but the Remuneration
Committee would only use such ability to apply a derogation after careful consideration and where the
Remuneration Committee considers the circumstances were truly exceptional and the consequences
for the Group and shareholders of not doing so would be significantly detrimental. Where time allowed
shareholders would be consulted prior to applying such a change, or at a minimum where this was not
possible, the full details of the derogation would be communicated as soon as practical (e.g. by market
announcement/on the Group's website) and disclosed in detail in the next Remuneration Report. Under
the potential derogation, the Remuneration Committee would have the ability to vary the elements of
the remuneration described in the above table, including levels of performance conditions applicable
to incentive arrangements.
Remuneration Report
The information on pages 74 to 94 of the Report on Directors' Remuneration identified as audited
forms an integral part of the audited financial statements as described in note 7 to the financial
statements on page 233. All other information in the report on Directors Remuneration is additional
information and does not form part of the audited financial statements.
In respect of the below table, the percentage difference between fixed and variable pay (excluding
LTIP) is as outlined below:
Executive and Non-Executive Directors’ Remuneration details
The following table sets out in detail the remuneration payable by the Group in respect of any Director
who held office for any part of the financial year:
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
84
Executive Directors Remuneration for the year ended 31 December 2024 and
31 December 2023 (Audited)
Executive Directors:
Tomás Ó Midheach
Kate Tobin
John O'Grady
2024
2023
2024
2023
€000s
€000s
€000s
€000s
Salary1,2,3
555
530
311
342
Benefits4
40
40
16
18
Pension Contribution5
44
42
25
51
Total fixed remuneration
639
612
352
411
% Fixed versus Total
31 %
53 %
48 %
48 %
Other Payments6
656
544
184
174
Vested LTIP in year7
788
—
202
277
Total Variable remuneration
1,444
544
386
451
% Variable versus Total
69 %
47 %
52 %
52 %
Total remuneration6
2,083
1,156
738
862
Notes
1.
Salaries were paid to Executive Directors and the salary numbers in the table reflect what was
actually paid in the financial year (Pay increases each year were effective from 1st April).
2.
2023: A pay increase was awarded to Mr O'Grady in line with the wider workforce. Mr. Ó
Midheach was awarded 8% to recognise his strong contribution since his appointment in 2021
and no increase had been given since appointment. The annual increase therefore is 3.9% in
respect of CEO and 4.5% in respect of CFO.
3.
2024: A pay increase was awarded to Mr. Ó Midheach in line with the wider workforce. Ms Tobin
did not receive a pay increase following her recent appointment.
4.
Benefits relate exclusively to a motor allowance and contribution towards health insurance costs.
5.
Pension contributions relate to contributions to a defined contribution pension scheme or a
payment in lieu.
6.
2024: Bonuses of €656k and €184k were awarded to Mr Ó Midheach and Ms. Tobin under the
bonus scheme in 2024. The bonuses were calculated in accordance with the Annual Performance
Arrangements described earlier and both Mr Ó Midheach's and Ms. Tobin's bonuses were
approved by the Remuneration Committee. 2023: bonuses of €544k and €174k were awarded to
Mr Ó Midheach and Mr O'Grady under the bonus scheme in 2023. The bonuses were calculated
in accordance with the Annual Performance Arrangements described earlier and both Mr Ó
Midheach's and Mr O'Grady's bonuses were approved by the Remuneration Committee.
7.
Vested LTIP in year relates to 2020-2022 LTIP vesting in 2023 and 2021-2023 LTIP vesting in
2024.
8.
The total remuneration for Executive Directors was €2,821,000 (2023: €2,018,000 )
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
85
Non Executive Directors Remuneration for the year ended 31 December 2024
(or date of departure, if earlier) and 31 December 2023 (Audited)
Non Executive Directors:
Fees1 €000s
Number of ordinary shares
of €0.60 each
2024
2023
31 December
2024
31 December
2023
Liam Herlihy (Chair)
183
166
8,000
8,000
Olive Gaughan2
54
—
—
—
Francie Gorman3
22
—
—
—
Patrick Murphy
72
24
—
—
Padraig Walsh8
—
15
—
1,100
Mary Brennan
119
103
—
—
Sylvia Cronin
98
83
—
—
Richard Pike
147
103
7,200
7,200
Jim Bergin4
8
—
—
—
David O’Connor5
89
160
1,500
1,500
John O'Dwyer6
89
75
—
—
Jean Sharp
103
89
—
—
Tim Cullinan7
54
66
—
—
Total
1,038
884
16,700
17,800
Notes
1.
Fees were paid to Non-Executive Directors.
2.
Olive Gaughan joined the FBD Board on 22nd May, 2024.
3.
Francie Gorman joined the FBD Board on 9th September, 2024.
4.
Jim Bergin joined the FBD Board on 19th November, 2024.
5.
David O'Connor sadly passed away on the 12th April, 2024.
6.
John O'Dwyer sadly passed away on the 24th November, 2024.
7.
Tim Cullinan left the board on 9th September, 2024.
8.
Padraig Walshe sadly passed away on the 1st February, 2023.
Base Salary
The base salaries effective from 1st April 2024 were €561,600 for the CEO and €315,000 for the CFO.
Further detail was provided in the 2023 Directors’ Remuneration Report.
Determination of Annual Performance Bonus for the year ended
31 December 20241,2
As previously noted, the overall Annual Performance Bonus arrangements, the targets and their
achievement are approved by the Remuneration Committee each year. Specifically, the Remuneration
Committee approves the merit pay and bonus arrangements for the Executive Directors in line with
FBD’s Remuneration Policy.
In 2024 the Remuneration Committee included a profit threshold that had to be reached in order to
qualify for bonus.
The Group’s short and long-term remuneration philosophy is to ensure that remuneration is aligned to
FBD’s purpose and values, supports strategy and promotes long-term success of the Group.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
86
1 ESRS 2 GOV-3 29 Incentive schemes and remuneration policies linked to sustainability matters for members of administrative, management and supervisory
bodies exist - subject to limited assurance
2 ESRS 2 GOV-3 29c Disclosure of how sustainability-related performance metrics are considered as performance benchmarks or included in remuneration
policies - subject to limited assurance
Remuneration includes performance-related elements designed to align Directors’ interests with those
of shareholders and to promote long-term sustainable growth and performance in line with our
strategy. Market-competitive total remuneration is structured to attract, motivate and retain
individuals of the highest quality.
The following objectives were set for the Executive Directors for 2024:
Executive Director
Objective
Measure of Success
Result
Tomás Ó Midheach
Operational Excellence
Achieve our key operational
metrics delivering retention and
service and our day to day goals
throughout the year.
Achieved
Technology & Innovation
Continue to deliver
transformational targets in
terms of core replacement and
digital delivery.
Achieved
Strategy
Deliver key strategy in respect
of our five key stakeholders, Our
Investors, The Regulator, Our
People, Wider Society and Our
Customer. Meaningful progress
made following the launch of
FBD's purpose, strategy and
values.
Achieved
ESG
Continue to enhance ESG
strategy and ensure key
deliverables are aligned across
the business with appropriate
communication and engagement
plan for investors, customers
and employees.
Achieved
People & Culture
Focus on key values continuous
improvement, engagement and
accountability to build a high
performing engaged workforce.
Progression of career
development and succession
plans for senior leaders.
Achieved
Kate Tobin
Financial Strategy
Strong balance sheet
management and management
of overall group profitability.
Effectively and proactively
manage investor relations.
Achieved
ESG
Continue to enhance ESG
strategy and key deliverables
are aligned across the business
with appropriate communication
and engagement plan for
investors, customers and
employees.
Achieved
People & Culture
Positive internal and external
communications creating strong
relationships with key
stakeholders and regulatory
bodies
Achieved
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
87
The following bonus conditions were agreed by the Remuneration Committee for Executive Directors
in respect of performance for 2024
Combined Operating Ratio
60.0 %
Grow Farmer Policy Count
6.7 %
Grow Business Policy Count
6.7 %
Grow Retail Policy Count
3.3 %
Grow Retail Partner Policy Count
3.3 %
Lead Culture Change
20.0 %
In respect of Combined Operating Ratio, target 84.9% was achieved as well as achieving 5% growth in
respect of Farmer Policy Count, 4.5% Business Policy Count, 4% Retail Policy Count and 39% Retail
Partner Policy count. FBD has a very clearly defined culture strategy that is aligned to our business
strategy and is actively considered and set by the Board and Executive Management Team (EMT). The
Board and EMT take a leading role in communicating the desired culture to the organisation.
Metric
% of Target
Available
0 %
25%-100%
On Target
100%
Out-
performance
100%-150%
Result
%
Achieved
for Bonus
Combined Operating Ratio
60.0 %
>98.6%
98.6%-95.8%
95.8 %
95.8%-90.6%
84.9 %
150.0 %
Grow Policy Count in line
with strategic plan Farmer
6.7 %
— %
0%-0.4%
0.4 %
0.4%-1%
5.0 %
150.0 %
Grow Policy Count in line
with strategic plan Business
6.7 %
2.0 %
2%-4.5%
4.5 %
4.5%-7%
4.5 %
100.0 %
Grow Policy Count in line
with strategic plan Retail
3.3 %
— %
0%-0.3%
0.3 %
0.3%-1%
4.0 %
150.0 %
Grow Policy Count in line
with Strategic plan Retail
Partner
3.3 %
15 % 15%-25%
25 % 25%-40%
39 %
150 %
Lead Culture Change
20.0 %
Communicate and embed purpose and mission,
Define behaviours. Communicate and ensure they are
embedded.
Demonstrate core values
Outperformance
150 %
Total
146 %
The Remuneration Committee have assessed the performance of the Group Chief Executive Officer
and Group Chief Financial Officer in relation to leadership of culture change. Achievements in the year
include1:
•
Continued to deliver on FBD strategy and executed effectively exceeding in some key areas.
•
Built on success of 2024 with a continued focus on our key stakeholders and delivery of the
strategy.
•
Achieved Gold award in D&I from the Irish Centre for Diversity which was a strong recognition of
all we achieved in respect of the Culture we aspire to in FBD.
•
A strong governance structure is in place to supervise and manage risks and compliance within the
organisation to reliably achieve business objectives.
•
Engagement remained a key focus with Town hall meetings, Branch Roadshows and engagement
forums throughout the year with two-way communication and opportunities for employees to give
feedback.
•
The implementation of strategic initiatives focused on employee and customer experience.
Following the determination of actual performance against the targets, as set out above, the CEO was
awarded a bonus of €656k and the CFO was awarded a bonus of €184k in line with our Policy, 30%
will be deferred into FBD shares for three years.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
88
1 ESRS 2 GOV-3 29b Description of specific sustainability-related targets and (or) impacts used to assess performance of members of administrative,
management and supervisory bodies - subject to limited assurance
The Remuneration Policy has operated as intended in terms of Group performance and quantum. The
Remuneration Committee considered the above formulaic outcome to ensure that it was both fair and
appropriate given wider stakeholder experience. The Committee did not adjust the outcome as it was
comfortable that this was the case.
Long Term Incentives
Conditional Awards of Shares in 2024 - Audited
During 2024 one Conditional Award of shares was made under the Performance Share Plan. This was
made in March 2024 to Executive Directors and Senior Management. The award represented 120% of
salary for the Group Chief Executive Officer and 60% of salary for the Group Chief Financial Officer.
The conditions attached to the award, which reflect the Board’s strategic plans, were based 10% on
the Policies in force growth. Policy count growth was chosen to reflect the ambition of the Board to
grow the business over the strategic time period. 70% was based on the Return on Targeted Equity
and this was chosen as it is aligned with our strategic intent and takes in both business profitability
and balance sheet management. Strategic Metrics is 20% and has a number of key deliverables to
align to the strategy.
Vesting levels range between a threshold level of 25% to a maximum of 125% for our performance. The
average return target for Return on Targeted Equity is up to low double-digit percentages and the
CAGR target for policy count growth is up to mid-single digit percentages. The actual upper-level
percentages are not disclosed due to commercial sensitivity and because to do so would also
constitute forward looking guidance.
The Committee will publish details regarding targets and vesting levels at the end of the performance
period (2026).
The Committee has decided not to include relative performance to market targets as there is no
relevant comparator in the Irish market.
The maximum and threshold for vesting for the performance conditions are as follows:
Metric
Weighting
Threshold
Level
Proportion
Vesting
Upper Level
Proportion
Vesting
Return on Targeted Equity
(ROTE)*
70%
8.4 %
25 %
Low double
digits
125 %
Policies in Force Growth
10%
>3.9%
25 %
Mid single
digits
125 %
Strategic Metrics
20%
Outstanding Conditional Awards (2021-2023)
The Committee considered the extent to which the performance conditions underpinning this award
were met in the three financial years 2021 to 2023 (the ’Performance Period’). The Committee
concluded that 125% of NAV was met as the adjusted compound annual growth rate (CAGR) was
13.86% when compared to the actual NAV at 31st December 2020. This was in excess of the upper
performance threshold of 4.9%. The In-force Policy Count target was not met. Therefore, in respect of
the conditional awards granted in March 2021 83.25% vested.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
89
The table below shows the applicable targets for this award and the actual performance achieved.
Threshold
(25% vesting)
Upper Level
(125% vesting)
Performance
Achieved
Vesting Level
Policy Count
4.7 %
6.6 %
1.8 %
— %
NAV CAGR
0.7 %
4.9 %
13.9 %
125 %
83.25 %
The Remuneration Committee considered the above formulaic outcome to ensure that it was both fair
and appropriate given holistic performance achieved and the wider stakeholder experience. The
Remuneration Committee adjusted the CAGR calculation to reflect the variance in dividends compared
to target.
Directors’ and Company Secretary’s Conditional LTIP Awards -
Audited
Details of the conditional share awards issued at nil cost to the Executive Directors who held office for
any part of the financial year and to the Company Secretary made under the 2007 and 2018 LTIP plans
are given in the table below. In respect of the 2022, 2023 and 2024 awards the number of shares
could increase to a maximum of 125% of the number of shares outlined below (which is 100%) if the
performance conditions previously described are met at stretch target level.
Individual Interest in LTIP (Audited)
At 1
January
2024
Granted
during
year
Dividends
(Under)/Out
Performance
LTIP
Vested
during
year
Forfeited
during
year
At 31
December
2024
Performance
Period
Earliest
vesting
date
Market
price on
award €
Executive Directors
Tomás Ó
Midheach
58,055
—
10,902
(9,724) (59,233)
—
—
2021-2023
Mar-24
6.89
40,404
—
—
—
—
—
40,404
2022-2024
Mar-25
9.90
29,347
—
—
—
—
—
29,347
2023-2025
Mar-26
13.63
—
48,178
—
—
—
—
48,178
2024-2026
Mar-27
13.45
Total
127,806
48,178
10,902
(9,724) (59,233)
—
117,929
John
O'Grady
27,866
—
5,233
(4,668) (28,431)
—
—
2021-2023
Mar-24
6.89
22,626
—
—
—
—
(7,542)
15,084
2022-2024
Mar-25
9.90
17,010
—
—
—
—
(11,340)
5,670
2023-2025
Mar-26
13.63
Total
67,502
—
5,233
(4,668) (28,431)
(18,882)
20,754
Kate
Tobin
14,877
—
2,794
(2,492)
(15,179)
—
—
2021-2023
Mar-24
6.89
12,424
—
—
—
—
—
12,424
2022-2024
Mar-25
9.90
9,340
—
—
—
—
—
9,340
2023-2025
Mar-26
13.63
—
14,052
—
—
—
—
14,052
2024-2026
Mar-27
13.45
Total
36,641
14,052
2,794
(2,492) (15,179)
—
35,816
Company Secretary
Nadine
Conlon
9,394
—
—
—
—
—
9,394
2022-2024
Mar-25
9.90
7,062
—
—
—
—
—
7,062
2023-2025
Mar-26
13.63
—
7,479
—
—
—
—
7,479
2024-2026
Mar-27
13.45
Total
16,456
7,479
—
—
—
—
23,935
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
90
The total number of shares subject to conditional awards outstanding under the 2018 LTIP Scheme
amount to 653,985 being 1.8% of the Company’s ordinary share capital (excluding treasury shares) at
31 December 2024 (2023: 770,522 shares) and 2.1% of ordinary share capital (excluding treasury
shares).
The 2007 and 2018 LTIP scheme rules do not permit the aggregate number of shares over which
conditional awards are granted in the preceding 10 year period, to be more than 10% of the Company's
issued ordinary share capital at the time the awards are granted. In the past 10 years there have been
10 conditional awards with an aggregate of 3,124,841 shares or 8.7% of the Company’s issued ordinary
share capital (excluding treasury shares).
Non-Executive Director Remuneration
The remuneration of the Non-Executive Directors is determined by the Board and reflects the time
commitment and responsibilities of their role. In setting this level, the Board has regard to the fees
payable to the Non-Executive Directors of the other Irish publicly listed companies and also to the
developments and policy for the remuneration of the employees in the wider Group.
The basic Non-Executive Director fee is €72,000 and this was reviewed in June 2023 following a
benchmarking exercise carried out by Odgers Berndtson to ensure our non-executive remuneration
was in line with the market rate. The previous review of Non-Executive Directors remuneration had
taken place in 2020. Directors receive additional fees for being members of and/or chairing Board
Committees as outlined within the Corporate Governance Report on pages 42 to 66. These fees are
reflective of their added responsibilities.
Executive Director and Non-Executive Director Remuneration
European Union (Shareholders' Rights) Regulations 2020 came into force in Ireland on 30 March 2020
when they were transposed into Section 1110N of Companies Act 2014. The annual Executive Director
and Non-Executive Director Remuneration over the last five years of those in office in 2024 is set out
below:
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
91
2020
2021
2022
2023
2024
€000s
€000s
€000s
€000s
€000s
Executive Directors:
Tomás Ó Midheach
Total Remuneration
—
1,065
1,081
1,156
1,295
% change in year1
— %
— %
1 %
7 %
12 %
Kate Tobin
Total Remuneration
—
—
—
—
536
% change in year1
— %
— %
— %
— %
— %
Non Executive
Directors:
Liam Herlihy (Chairman)
Fees
134
149
149
166
183
% change in year1
13 %
11 %
— %
11 %
10 %
Patrick Murphy
Fees
—
—
—
24
72
% change in year1
— %
— %
— %
— %
200 %
Mary Brennan
Fees
74
81
87
103
119
% change in year1
20 %
9 %
7 %
18 %
16 %
Sylvia Cronin
Fees
64
73
73
83
98
% change in year1
17 %
14 %
— %
14 %
18 %
Tim Cullinan
Fees
—
60
60
66
54
% change in year1
— %
— %
— %
10 %
(18) %
David O'Connor
Fees
88
103
144
160
89
% change in year1
25 %
17 %
40 %
11 %
(44) %
Richard Pike
Fees
59
69
88
103
147
% change in year1
4 %
17 %
28 %
17 %
43 %
Olive Gaughan
Fees
—
—
—
—
54
% change in year1
— %
— %
— %
— %
— %
John O'Dwyer
Fees
—
20
65
75
89
% change in year1
—
—
225 %
15 %
19 %
Francie Gorman
Fees
—
—
—
—
22
% Change in Year
— %
— %
— %
— %
— %
Jim Bergin
Fees
—
—
—
—
8
% Change in Year
— %
— %
— %
— %
— %
Jean Sharp
Fees
—
25
76
89
103
% change in year1
— %
— %
204 %
17 %
16 %
1 % change shows the increase or decrease in remuneration and does not include a percentage change if related to the first year in office.
The Chairman, Liam Herlihy received fees of €183,000 during the year (2023: €166,000) inclusive of
the basic Non-Executive Director fee. Richard Pike received fees of €147,000 as he assumed David
O'Connor's role following his sad passing in April, 2024.
In respect of Olive Gaughan payments reflect a partial year as Olive joined the Board on 22nd May,
2024. Francie Gorman payments also reflect a partial years payment as he joined the Board on the 9th
September, 2024 and Jim Bergin is also a partial payment as he joined the Board on the 19th
November, 2024. David O'Connor RIP and John O'Dwyer RIP also received partial payments..
Non-Executive Directors are not members of the Group’s pension schemes and are not eligible for
participation in the Group’s long-term incentive schemes.
External appointments held by the Executive Directors
In recognition of the benefits to both the Group and to our Executive Directors serving as Non-
Executive Directors of other companies, our Executive Directors are, subject to advance agreement in
each case, permitted to take on an external non-executive appointment and to retain any related fees
paid to them.
Details on Executive Directors external appointments are included on pages 28 to 31.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
92
Change in Directors’ remuneration, employee remuneration and
Group Performance
European Union (Shareholders' Rights) Regulations 2020 came into force in Ireland on 30 March 2020
when they were transposed into Section 1110N of Companies Act 2014.
The annual change over the last five years is set out below for Group Chief Executive Officer
remuneration and remuneration of all other Group employees:
2020
2021
2022
2023
2024
Group Chief Executive Officer
(18)%1
0%
1%
7%
12%
Remuneration % change year on year
All Group Employees
2%
1%
6%
11%
12%
Remuneration % change year on year
1 In addition Mr D'Alton was paid consultancy fees of €790,000 and overlapped for part of 2020.
Tomás Ó Midheach was appointed in January 2021 and therefore there is only a three year prior
comparison.
The average cost per full-time equivalent for 2024, excluding Directors, was €84,000 (2023: €79,000).
The table below details the average cost per full time equivalent over the last five years, including the
annual change.
2020
2021
2022
2023
2024
Average cost per full-time equivalent
66,000
74,000
80,000
79,000
84,000
Average cost % change year on year
(1) %
12 %
8 %
(1) %
6 %
When making decisions on executive pay the Remuneration Committee takes into account pay in
respect of all employees and is satisfied that pay arrangements are appropriate.
The Group Net Asset Value (NAV) per share and dividend paid per share for the last five years is set
out below:
2020
2021
2022
2023
2024
Performance of the Group
NAV per share (IFRS 4)
1,095
1,338
1,188
—
—
NAV per share (IFRS 17)
—
—
1,2761
1,330
1,346
Ordinary Dividend paid per share
0
0
100c
100c
100c
Special Dividend paid per share
—
—
—
100c
100c
1restated
Implementation of policy in 2025
Base Salary
A pay pot of 3.5% of base salary has been agreed for our employees for 2025 and this will take into
account performance, current position on salary range and pay grade. We are also awarding all
employees a €1,000 voucher in recognition of their hard work and dedication throughout 2024.
The Committee has decided to award a pay increase of 3.5% to the CEO. A pay increase of 3.5% has
been awarded to the CFO. These increases are in line with pay increases to the wider workforce.
Annual Performance Bonus
There is no change to the bonus opportunity for the CEO, with a maximum opportunity of 120% of
salary. The maximum bonus opportunity for CFO is 100% of base salary.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
93
The annual performance bonus for Executive Directors in respect of 2025 will be subject to the
following performance measures and weightings:
Performance Metric
Weighting
Combined Operating Ratio
60 %
Grow Policy Count
20 %
Lead Strategy & Culture Change
20 %
Payment of any bonus will be subject to the achievement of a defined minimum level of Group profit
after tax.
The Remuneration Committee considers that the above financial metrics are key measures of
operational performance for the business. The culture change metric will assess the achievement of a
number of key initiatives being carried out by the business and will be measured by employee surveys
and output from culture initiatives.
The full details of targets and performance will be set out on a retrospective basis in next years
Remuneration Report.
Pension
The pension contribution level for the Group Chief Executive Officer and the Group Chief Financial
Officer in 2025 will be 8% of base salary, which is in line with the rate for the wider workforce.
LTIP
The Committee determined an award of 150% of salary for the CEO in 2025. This took into account
the performance of the business and the CEO and is within our Remuneration Policy as approved by
shareholders. Awards will continue to be subject to stretching performance targets and delivered in
shares. The following conditions will apply in respect of LTIP's granted for the period 2025-2027:
Metric
%
Weighting
Return on Targeted Equity
70 %
Policy in Force Growth
10 %
Strategic Metrics
20 %
Vesting threshold levels will be applied at intervals of 25% to a maximum of 125% if the performance
conditions are met.
The Remuneration Committee believes that Return on Targeted Equity is a key strategic measure as it
takes into account both business profitability and balance sheet management and this is reflected in
the weighting on this measure for the 2025 LTIP award. Policies in Force growth is a key measure of
growth in the business and is fundamental to FBD's strategy.
The strategic metrics element will be determined by performance achieved in relation to a number of
key long-term strategic initiatives. The specific targets cannot be disclosed on a forward-looking basis
at this time as they are commercially sensitive however the Remuneration Committee has committed
to full disclosure on a retrospective basis and disclosing the targets in the Directors' Remuneration
report next year to the extent that they are not considered commercially sensitive at that point.
Performance will be measured on assessment of outcomes for each key stakeholder group.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
94
Directors'
Responsibilities
Statement
The Directors are responsible for preparing the Annual
Report and financial statements, in accordance with the
Companies Act 2014 and the applicable regulations.
Irish company law requires the Directors to prepare
financial statements for each financial year. Under the
law, the Directors have elected to prepare the financial
statements in accordance with International Financial
Reporting Standards as adopted by the European Union
(“relevant financial reporting framework”). Under
company law, the Directors must not approve the
financial statements unless they are satisfied that they
give a true and fair view of the assets, liabilities and
financial position of the Company and the Group as at
the financial year end date and of the profit or loss of
the Group for the financial year and otherwise comply
with the Companies Act 2014.
The Directors' responsibilities for the Sustainability
Statement are discussed in full in our Statement of
Directors' responsibilities for the Sustainability
Statement on page 97.
In preparing each of the Company and Group financial
statements, the Directors are required to:
•
select suitable accounting policies for the Company
and the Group financial statements and then apply
them consistently;
•
make judgements and estimates that are reasonable
and prudent;
•
state whether the financial statements have been
prepared in accordance with the applicable
accounting standards, identify those standards, and
note the effect and the reasons for any material
departure from those standards; and
•
prepare the financial statements on the going
concern basis unless it is inappropriate to presume
that the Company will continue in business.
The Directors are responsible for ensuring that the
Company and the Group keeps or causes to be kept
adequate accounting records which correctly explain
and record the transactions of the Company and the
Group, enable at any time the assets, liabilities, financial
position and profit or loss of the Company and the
Group to be determined with reasonable accuracy,
enable them to ensure that the Annual Report and
financial statements comply with the Companies Act
2014 and the Listing Rules of the Euronext Dublin and
enable the financial statements to be audited.
They are also responsible for safeguarding the assets of
the Group and hence for taking reasonable steps for the
prevention and detection of fraud and other
irregularities.
The Directors are also required by the Transparency
(Directive 2004/109/EC) Regulations 2007
(Transparency (Directive 2004/109/EC) (Amendment)
(No. 2) Regulations 2015) to include a management
report containing a fair review of the business and a
description of the principal risks and uncertainties facing
the Group.
Under applicable law and the requirements of the
Listing Rules issued by the Euronext Dublin, the
Directors are also responsible for preparing a Directors’
Report and reports relating to Directors’ remuneration
and corporate governance that comply with that law
and those Rules. The Directors are responsible for the
maintenance and integrity of the corporate and financial
information included on the Group’s website. Legislation
in Ireland governing the preparation and dissemination
of financial statements may differ from legislation in
other jurisdictions.
The Directors confirm that, to the best of their
knowledge and belief:
•
the financial statements, prepared in accordance
with IFRSs as endorsed by the EU, give a true and
fair view of the assets, liabilities and financial
position for the Group as at 31 December 2024 and
of the result for the financial year then ended;
•
the Report of the Directors, the Chair’s Statement
and the Review of Operations include a fair review of
the development and performance of the Group’s
business and the state of affairs of the Group for the
12 months ending 31 December 2024, together with
a description of the principal risks and uncertainties
facing the Group; and
•
the Annual Report and financial statements, taken as
a whole, is fair, balanced and understandable and
provides the information necessary for shareholders
to access the position, performance, strategy and
business model of the Group.
On behalf of the Board
6 March 2025
Liam Herlihy
Tomás Ó Midheach
Chair
Group Chief Executive Officer
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
95
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
96
SUSTAINABILITY
STATEMENT
FBD BUSINESS INSURANCE CUSTOMER
“FBD has supported us from
the very beginning with our
insurance needs, and I like that
I’ve been liaising with the same
local contact in FBD for years.
That personal aspect is very
important. It is what our own
business is based on too, that
personal interaction and treating
customers well.”
Kenneth Keavey
Green Earth Organics, Co. Galway.
WHAT ESG MEANS TO FBD
Environmental, Social and Governance (ESG) refers to the three
pillars of a set of standards which guide corporate behaviour
with a view to companies becoming better global citizens.
ESG is relevant to any company in any country and in any sector.
Statement of Directors' Responsibilities
for the Sustainability Statement
The Directors are responsible for the preparation of the Sustainability Statement in accordance with
Part 28 of the Companies Act 2014 and including the Sustainability Statement in a clearly identifiable
dedicated section of the Directors’ Report.
The Directors are also responsible for designing, implementing and maintaining such internal controls
that they determine are necessary to enable the preparation of the Sustainability Statement in
accordance with Part 28 of the Companies Act 2014 and that it is free from material misstatement,
whether due to fraud or error.
In preparing the Sustainability Statement, the Directors are required to:
•
prepare the statement in accordance with the European Sustainability Reporting Standards (ESRS)
including the selection and application of appropriate sustainability reporting methods;
•
disclose the double materiality assessment process performed to identify the information required
to be reported in the Sustainability Statement;
•
prepare the disclosures within the environmental section of the Sustainability Statement, in
compliance with Article 8 of EU Regulation 2020/852 (the “Taxonomy Regulations”);
•
ensure that the Group maintains adequate records for the preparation of the Sustainability
Statement;
•
make judgements and estimates that are reasonable in the circumstances including the
identification and description of any inherent limitations in the measurement or evaluation of
information in the Sustainability Statement;
•
prepare forward-looking information, where applicable, on the basis of disclosed assumptions
about events that may occur in the future and possible future actions by the Group.
On behalf of the Board
6 March 2025
Liam Herlihy
Tomás Ó Midheach
Chair
Group Chief Executive Officer
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
97
ESG Strategy Areas of Focus
WE FOCUS ON WHERE WE CAN HAVE
A MEANINGFUL IMPACT
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
98
Strategy & Governance
•
Determine where we can have a meaningful impact
•
Embed within our business
•
ESG governance structure and resources
•
Launch FBD's signature advocacy initiatives and Prepare for CSRD (Double
materiality; Taxonomy review and climate scenario analysis)
•
Implementation of carbon reduction strategies across investment portfolio
•
Signatory of the Women in Finance Charter
Meaningful Impact
•
Irish Centre for Diversity Gold Accreditation
•
Confirmed as members of the UN Principles for Sustainable Insurance
•
Adapting as the sustainability reporting landscape evolves.
•
Climate scenario analysis completed
•
Climate risk modelling integrated into capital modelling
•
Implementation project to report on 2024 metrics for CSRD
Disclosures & Advocacy
•
Advocating for and investing in sustainable initiatives, research and
education while supporting our customers in meeting their sustainability
goals.
•
Embedding annual CSRD reporting
•
Increased disclosures under EU Taxonomy
•
Continued reporting on UN principles for sustainable insurance to the UN
Environment Programme Finance Initiative
•
Continued reporting under the Carbon Disclosure Project
2024
FBD has embraced ESG as a core component of our operational & strategic activities
FBD – A local insurer, supporting & sustaining local communities
2025+
2017-23
Deliver on
our ESG
commitments
and support
our customers
in theirs.
A robust
governance
structure.
ENVIRONMENTAL
SOCIAL
GOVERNANCE
A local presence
at the heart
of the community
we serve.
Focus on Ireland
Leading insurer in Agri/Farming
DELIVERING AND HAVING
A MEANINGFUL IMPACT
The UN Principles for Sustainable Insurance will continue to
guide our sustainability related goals, delivered by the business
through the clearly defined pillars of our ESG strategy.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
99
UN PRINCIPLES FOR
SUSTAINABLE INSURANCE
Principle 1
We will embed in our decision-making Environmental,
Social and Governance issues relevant to our insurance
business
Principle 2
Work together with our clients and business partners to
raise awareness of Environmental, Social and Governance
issues, manage risk and develop solutions
Principle 3
Work together with government, regulators and other
stakeholders to promote widespread action across
society on Environmental, Social and Governance issues.
Principle 4
Demonstrate accountability and transparency in regularly
disclosing publicly our progress in implementing the
Principles
DELIVERED BY OUR BUSINESS
THROUGH THE PILLARS OF OUR
ESG STRATEGY
Corporate & Advocacy
How We
Operate
Underwriting,
Claims & Sales
Investments
Disclosures
How we govern the business, our pledge, our promise &
evolving our ESG strategy and approach based on the
assessment of challenges ahead.
How we run the
business
Areas of the
business that are
responsible for our
products, services,
sector sustainability
assessment and
objectives.
Manage the
company assets
Reporting, Metrics & Measurements
Climate Change
FBD and the wider insurance industry have a role to play
in addressing climate change by supporting customers
and businesses as they become more climate resilient.
Addressing and mitigating climate change is one of the
most serious global challenges we face. FBD are
dedicated to contributing to this effort which is reflected
in the areas of focus within our ESG strategy, although
we recognise we are on a journey together with our
customers, the insurance industry and wider society.
Our ESG strategy will evolve along with the sustainability
landscape including the growth of green technology and
solutions, increased awareness and reporting across our
value chain, emerging market practices and the
geopolitical response.
2024 ESG INITIATIVE LAUNCH
UCD FBD Agricultural Science Centre
Pictured at the UCD FBD Agricultural Science Centre Launch: (Left
to Right) Liam Herlihy, FBD Group Chair; Tomás Ó Midheach, FBD
Group Chief Executive Officer; Kate Tobin, FBD Group Chief
Financial Officer; Charlie McConalogue TD former Minister for
Agriculture, Food and the Marine , Professor Orla Feely, President
of UCD and Michael Berkery, Chairman of FBD Trust CLG
As a signatory of the UN principles for sustainable
insurance we strive to work with stakeholders to
promote action. Building on the launch of our signature
Corporate Advocacy initiative in 2023 - Moorepark, FBD
and University College Dublin (UCD) announced a major
investment in new agricultural research and education
facilities at UCD Lyons Farm in August 2024.
FBD Holdings plc has pledged a contribution of €1.5
million in support of the 'UCD FBD Agricultural Science
Centre'. The investment underscores our commitment to
supporting Ireland’s farming communities, agriculture as
a whole and the food industry.
The UCD Centre will enhance UCD’s ability to deliver
both teaching and research to the highest international
standards and will be a focal point for all users. It will
provide a centre where researchers, students,
innovators and industry experts can collaborate on
projects aimed at addressing the most pressing
challenges facing modern farming
and agriculture.
This significant new development will:
•
Enhance UCD's ability to deliver both teaching and
research to the highest international standard
•
Provide a hub where researchers and students can
collaborate on projects addressing the most pressing
farming challenges
•
Facilitate new education programmes in the areas of
animal science, animal health, crop science and
sustainable food production.
•
Construction of the new centre is due to commence
in 2025
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
100
"We are delighted to join forces with UCD in this important initiative that will
foster innovation research and education in the agricultural sector. Together
with UCD we are dedicated to nurturing the next generation of agricultural
scientists who are poised to make a lasting impact on a sustainable future"
WE ARE DELIGHTED TO JOIN
FORCES WITH UCD IN THIS
IMPORTANT INITIATIVE
Tomas Ó Midheach, Group Chief Executive Officer
General Basis for Preparation
Framework
On 5 January 2023, the Corporate Sustainability Reporting Directive (CSRD) entered into force. The
objective of the CSRD is to improve the existing requirements of the EU’s Non-Financial Reporting
Directive (NFRD), to better harness the potential of the EU in the transition to a fully sustainable and
inclusive economic and financial system, in accordance with the European Green Deal and the UN
Sustainable Development Goals. Companies subject to the CSRD are required to report according to
European Sustainability Reporting Standards (ESRS) from 1 January 2024. FBD Holdings plc is in the
first wave of mandatory reporters as it is considered a 'public-interest entity' and is deemed 'large'
under the scoping criteria of the regulation. To ease the first-time application, presenting comparative
information in the first year of preparation of the Sustainability Statement under the ESRS is not
required. For a list of disclosure requirements complied with refer to Appendix 'Disclosure requirements
complied with' on pages 169 to 172.
The Group’s 2024 Sustainability Statement is prepared in accordance with Part 28 of the Companies
Act 2014 and in compliance with the ESRS issued by the European Financial Reporting Advisory Group
(EFRAG). The Environmental, Social and Governance (ESG) topics included therein have been assessed
as material through our Double Materiality Assessment (DMA). We identified and report on one entity-
specific topic being; farm safety. Please see 'Double Materiality Assessment Process' on pages 119 to
125 for information on our DMA's scope and our methodology.
The reporting period for FBD's Sustainability Statement is consistent with that of its financial
statements.
Consolidation
The consolidated data comprises FBD Holdings plc and subsidiaries controlled by FBD Holdings plc.
The data is consolidated according to the same principles as the financial statements. Please refer to
accounting policy B on pages 208 to 209.
The information provided in the Sustainability Statement has been extended to include information on
the material impacts, risks and opportunities connected with our business through its direct and
indirect business relationships in the upstream and/or downstream value chain (“value chain
information”). The inclusion of value chain information in the Sustainability Statement does not affect
the reporting boundaries, which correspond to the boundaries of the entities included in the perimeter
of its consolidated financial statements. For further details see section 3 'Value Chain Analysis' under
'Double Materiality Assessment Process' on pages 119 to 120.
Key estimates and judgements
The Group uses judgements and estimates for the reporting of some data points, for example our
Scope 3 emissions. Emissions for Purchased Goods and Services and Capital Goods have been
calculated on a spend basis by applying emission factors to categories of expenditure that we have
determined to be relevant. While this method is considered to be less accurate than obtaining
emissions data directly from vendors, it will enable us to identify which categories of expenditure
contribute the most to FBD's indirect emissions and we aim to refine this method over the coming
years. In addition, emission calculations for Investments include extrapolation where no direct data is
available. Data coverage is an industry wide issue which is expected to improve over time.
We regularly reassess our use of estimates and judgements based on experience, the development of
ESG reporting, and several other factors. Changes in estimates are recognised in the period in which
the estimate in question is revised unless new information provides evidence of circumstances that
existed in the prior period in which case the comparatives are revised. Data and assumptions used in
preparing the Sustainability Statement are consistent with the corresponding financial data and
assumptions used in the Group’s financial statements. The key sources of judgement and estimation in
the preparation of the financial statements are detailed in accounting policy X on pages 224 to 226.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
101
There was no significant risk identified of a material adjustment to the carrying amounts of assets and
liabilities reported in the financial statements relative to our material risks and opportunities within the
next annual reporting period.
Exemptions
The Group has not used the option to omit a specific piece of information corresponding to intellectual
property, know-how or the results of innovation nor the exemption from disclosure of impending
developments or matters in the course of negotiation, as provided for in articles 19a(3) and 29a(3) of
Directive 2013/34/EU and Part 28 of the Companies Acts 2014.
The Group has availed of the phased-in disclosure requirements outlined in appendix C of ESRS 1 to
the extent that they applied to FBD's material topics and are allowable given FBD's average number of
employees exceeded 750 during the reporting period. See Appendix 'Phased in concessions availed of'
on page 174 for further details.
External review
In accordance with section 1613 of the Companies Act, 2014, the Sustainability Statement set out on
pages 96 to 176 has been subject to limited assurance review by PricewaterhouseCoopers, Chartered
Accountants and Sustainability Assurance Service Providers. The elements of the Annual Report
outside the Sustainability Statement that are covered by their limited assurance procedures are clearly
indicated by "subject to limited assurance" footnotes where data points that are covering ESRS
disclosure requirements are incorporated by reference. Their limited assurance procedures do not
extend to any links or references to material outside of the Annual Report unless clearly otherwise
indicated to the contrary.
Their limited assurance report is included on pages 177 to 180 of the Annual Report and should be read
in conjunction with this Sustainability Statement.
Incorporation by Reference
The data-points below mandated by ESRS disclosure requirements have been included within the
Management's Review section of our Annual Report and are incorporated into our Sustainability
Statement by reference.
ESRS 2 GOV-1
21 a
Number of executive members
Integer
43
Board Composition and Independence
ESRS 2 GOV-1
21 a
Number of non-executive members
Integer
43
Board Composition and Independence
ESRS 2 GOV-1
21 b
Information about representation of
employees and other workers
narrative
63
Director engagement with the workforce
ESRS 2 GOV-1
21 c
Information about member's experience
relevant to sectors, products and
geographic locations of undertaking
narrative
70- 72
Board Diversity, Experience and Skills
ESRS 2 GOV-1
21 d
Percentage of members of administrative,
management and supervisory bodies by
gender and other aspects of diversity
Percent
70- 72
Board Diversity, Experience and Skills
ESRS 2 GOV-1
21 d
Board's gender diversity ratio
Percent
72
Gender Balance
ESRS 2 GOV-1
21 e
Percentage of independent board
members
Percent
43
Board Composition and Independence
ESRS 2 GOV-1
23 a
Information about sustainability-related
expertise that bodies either directly
possess or can leverage
narrative
68
70- 72
Board Induction, training and Development
Board Diversity, Experience and Skills
ESRS
DR
Para
Name
Data
Type
Page
Additional Information
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
102
G1
G1.GOV-1
5a
Disclosure of role of administrative,
management and supervisory bodies
related to business conduct
narrative
42
Corporate Governance Report
G1
G1.GOV-1
5 b
Disclosure of expertise of administrative,
management and supervisory bodies on
business conduct matters
narrative
70- 72
Board Diversity, Experience and Skills
ESRS 2 GOV-3
29
Incentive schemes and remuneration
policies linked to sustainability matters
for members of administrative,
management and supervisory bodies exist
semi-
narrative
86-89
Determination of Annual Performance
Bonus for the year ended 31 December
2024
ESRS 2 GOV-3
29 a
Description of key characteristics of
incentive schemes
narrative
77-82
Remuneration Policy
ESRS 2 GOV-3
29 b
Description of specific sustainability-
related targets and (or) impacts used to
assess performance of members of
administrative, management and
supervisory bodies
narrative
88
Determination of Annual Performance
Bonus for the year ended 31 December
2024
ESRS 2 GOV-3
29 c
Disclosure of how sustainability-related
performance metrics are considered as
performance benchmarks or included in
remuneration policies
narrative
86-89
Determination of Annual Performance
Bonus for the year ended 31 December
2024
ESRS 2 GOV-3
29 e
Description of level in undertaking at
which terms of incentive schemes are
approved and updated
narrative
77
Role of the Remuneration Committee
ESRS 2 GOV-5
36 a
Description of scope, main features and
components of risk management and
internal control processes and systems in
relation to sustainability reporting
narrative
18-19
Risk & Uncertainties Report
ESRS 2 GOV-5
36 b
Description of risk assessment approach
followed
narrative
18-19
Risk & Uncertainties Report
ESRS 2 GOV-5
36 c
Description of main risks identified and
their mitigation strategies
narrative
19-27
Risk & Uncertainties Report
ESRS 2 SBM-1
40 a i
Description of significant groups of
products and (or) services offered
narrative
16
Business Model
ESRS 2 SBM-1
40 a ii Description of significant markets and (or)
customer groups served
narrative
16
Business Model
ESRS 2 SBM-1
42
Description of business model and value
chain
narrative
16
Business Model
ESRS 2 SBM-1
42 a
Description of inputs and approach to
gathering, developing and securing inputs
narrative
16
Business Model
ESRS 2 SBM-1
42 b
Description of outputs and outcomes in
terms of current and expected benefits
for customers, investors and other
stakeholders
narrative
16
Business Model
ESRS 2 SBM-1
42 c
Description of main features of upstream
and downstream value chain and
undertakings position in value chain
narrative
16
Business Model
ESRS 2 SBM-2
45 d
Description of how administrative,
management and supervisory bodies are
informed about views and interests of
affected stakeholders with regard to
sustainability-related impacts
narrative
62
49
Stakeholder engagement
Audit Committee Review of DMA
ESRS
DR
Para
Name
Data
Type
Page
Additional Information
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
103
Double Materiality Assessment
Introduction
There are twelve binding ESRS with mandatory quantitative and qualitative disclosures. The starting
point of sustainability reporting in accordance with the CSRD and the ESRS is a mandatory Double
Materiality Assessment (DMA). The concept of Double Materiality considers materiality from an
“outside-in” perspective, which is the financial effect (positive and negative) on FBD from sustainability
related matters, as well as from an “inside-out” perspective, which is the impact (positive and
negative) of FBD operations on the environment and society. Conducting a DMA ensures that we
report on all material sustainability matters that are relevant to our business activities.
ESRS 1 and ESRS 2 are mandatory ‘cross-cutting’ standards which FBD is required to follow and report
on irrespective of its DMA results. The ten topical standards covering Environmental, Social and
Governance matters are subject to a Double Materiality Assessment i.e. FBD must report under CSRD
on those sustainability matters which are deemed material following the DMA.
A sustainability matter is a specific dimension of sustainability under which the Group has an impact
on people or the environment or which results in risks or opportunities for the Group.
Sustainability topics and sub-topics are structured groups of sustainability matters that on the highest
structural level are grouped into Environmental, Social and Governance standards as defined in the
CSRD. The topical standards further specify sustainability topics and sub-topics into concrete
sustainability disclosure requirements.
The material sustainability matters are determined through identifying and assessing material Impacts,
Risks, and Opportunities (IROs) for ESG sustainability matters.
A sustainability matter is considered material when it meets the criteria defined for impact materiality
or financial materiality, or both (see section 4.3 of 'Double Materiality Assessment Process' on pages
123 to 125.).
The applicable information prescribed within the disclosure requirements of the material assessed
topical standards, including its datapoints are disclosed when the information is relevant from one or
more of the following perspectives:
(a) the significance of the information in relation to the matter it purports to depict or explain; or
(b) the capacity of such information to meet the users’ decision-making needs, including the needs of
primary users of general-purpose financial reporting described in the paragraph and/or the needs of
users whose principal interest is in information about the undertaking’s impacts.
In the case where a sustainability matter is not covered by a topical standard, entity-specific
disclosures are made in keeping with the overarching principles and minimum disclosure requirements
of the ESRS.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
104
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
105
DOUBLE MATERIALITY ASSESSMENT
OUTSIDE IN
(RISKS & OPPS.)
Financial Materiality
(“inward impact” or “outside-in)
Risks and opportunities are sustainability
matters/topics which could have material
financial effects on FBD. These financial risks
and opportunities are not limited to topics
that can be controlled by the Group.
INSIDE OUT
(IMPACTS)
Impact Materiality
(“outward impact” or “inside-out”)
Sustainability matters/topics for which FBD
can have a material impact - i.e. on the planet
and society. They can occur inside and outside
the Group along the entire value chain.
FBD
PLANET &
SOCIETY
DOUBLE
MATERIALITY
Sustainability Governance Framework
In the Corporate Governance Report on pages 42 to 66
the Board outlines how it has applied the principles set
out in the UK Corporate Governance Code 2018 and the
Irish Corporate Governance Annex. The report outlines
the roles and responsibilities of the Board and its
Committees including any delegated responsibilities.
Biographical details of the Directors in office are
detailed on pages 28 to 31. The composition, diversity,
experience and skills, including expertise on business
conduct matters, are disclosed in the Board Diversity
report on pages 70 to 72. The breakdown of Gender
Diversity, Skills and Experience, both locally and
internationally, of FBD's Board Committees can be found
on page 47 for the Audit Committee, page 52 for the
Risk Committee, page 56 for the Nomination and
Governance Committee and page 59 for the
Remuneration Committee.
Risks relating to ESG matters are managed and reported
in line with the Risk Management Framework. FBD’s
three lines of defence framework, is described in more
detail in the Risk and Uncertainties report on pages 18
to 27.
A mapping of the information provided in the
Sustainability Statement about the due diligence
process is included within the appendix 'Statement on
sustainability due diligence'
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
106
DMA APPROACH
We have conducted our first DMA assessment following the European Financial
Reporting Advisory Group (EFRAG) Implementation Guidance (IG) and involved
consultation with internal and external stakeholders.
1
2
3
4
5
Top-Down
Assessment:
Value Chain
and Stakeholder
Analysis:
Identifying and
validating IROs:
Stakeholder
Engagement and
Assessing
Materiality:
Validation and
Approval:
Through review of
our business model,
peer reporting, and
other relevant
industry insights, we
identified relevant
sustainability matters
for which IROs were
developed.
Using EFRAG
Implementation
Guidance on Value
Chains (IG 2), we
determined which
value chain actors and
business relationships
should be considered in
the development of
IROs due to heightened
risk of adverse impacts
and key dependencies.
We also determined the
stakeholder engagement
approach to support the
assessment and scoring
of IROs including
deciding whether
stakeholders would be
interviewed and/or
surveyed.
We identified a long
list of IROs across
upstream,
downstream and own
operations, linked to
the relevant
sustainability matters
identified in the top-
down assessment.
Through discussions
with key individuals
within the business,
we refined the
longlist of IROs into a
shortlist of IROs.
We identified and
engaged with
stakeholders via
surveys, interviews
and workshops. We
completed scoring of
each of the
shortlisted IROs,
incorporating
feedback received
through stakeholder
engagement. .
We validated
material IROs and
sustainability matters
and prepared this
report on the DMA
process and results.
Sustainability at Board Level
The Board of FBD is ultimately responsible for the long-
term sustainable success of the Group. The Board sets
strategic goals within the boundaries of the Group’s risk
appetite and a framework of prudent and effective
controls. Since 2022 ESG has been included as a
dedicated work stream within FBD’s overall Group
strategy. The CEO report to the Board includes a
sustainability update on a quarterly basis. In addition,
the Board and Board Committees incorporate ESG
considerations, where relevant, as part of their decision-
making. This reflects our commitment to the UN
Environment Programme Finance Initiative Principles for
Sustainable Insurance ("UNEP FI PSI"), to embed ESG in
decision-making within our insurance business. FBD
became a signatory of the UNEP FI PSI on the 9 January
2024.
Audit Committee
On behalf of the Board, the Audit Committee is
responsible for monitoring the quality and integrity of
Sustainability Statement. See activities of the
Committee during the reporting period on page 49.
Board Risk Committee
The Board Risk Committee is responsible for ensuring
that ESG risks and negative impacts are integrated into
the Risk Management Framework and for promoting a
risk awareness culture in the Group. See activities of the
Committee during the reporting period on page 54.
Remuneration Committee
The Remuneration Committee is responsible for ensuring
the Group’s overall reward structures are aligned with
the achievement of the Group’s strategy. Although no
specific percentage of variable remuneration is allocated
to ESG performance or climate related considerations,
the Remuneration Committee has set ESG objectives for
the CEO and CFO aligned to the implementation of the
ESG strategy. Remuneration of executive and non-
executive directors is outlined in the report on Directors’
Remuneration on pages 74 to 94 and activities of the
Committee during the reporting period are detailed on
pages 60 to 61.
Nomination and Governance Committee
The Nomination and Governance Committee is
responsible for ensuring the Board and its Committees
are made up of individuals with the necessary skills,
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
107
knowledge and experience to discharge their
responsibilities effectively and monitoring compliance
with corporate governance best practice. ESG forms
part of the Skills Matrix and is included in the skills and
experience required when the Board is completing
succession planning. See activities of the Committee
during the reporting period on pages 57 to 58.
Executive Risk Committee
The Executive Risk Committee reports to the Board Risk
Committee and has responsibility for the oversight and
management of key sustainability-related risks and
negative impacts from an operational perspective, and
implementation of appropriate risk management
strategies.
Sustainability Committee
The Sustainability Committee is an executive sub
committee, and is tasked with implementing the Board
approved ESG strategy and reviews and approves all
ESG related activity across the Group. The Sustainability
Committee oversees the IRO Management approach,
including the review and approval of associated action
plans and targets. Risks and Negative Impacts are also
reported to the Board Risk committee for integration
into the Risk Management Framework. The Sustainability
Committee comprises the Executive Management Team
and other relevant senior management, and reports to
the Board through its Chair, the Group Chief Executive
Officer.
Executive Management Team (ESG strategy
pillar owners)
The Executive Management Team (EMT) comprises the
most senior executives within the Group reporting
directly to the CEO. The EMT support the CEO in
leading the organisation, and its individual teams, to
fulfil the Group’s vision and purpose and assist with the
management of the Group on a day-to-day basis. To
direct the execution of our ESG strategy, five Pillars
have been established with assigned Executive Officers
as owners of each Pillar:
•
Corporate & Advocacy – Group Company Secretary
•
How we Operate – Group Chief Technology and
Operations Officer and Group Chief HR Officer
•
Underwriting, Claims & Sales – Chief Underwriting
Officer, Chief Claims Officer and Group Chief
Commercial Officer
•
Investments – Group Chief Financial Officer
•
Disclosures – Group Chief Financial Officer
The EMT are accountable for implementing policies,
strategies, action plans, and targets related to IROs, as
well as other sustainability-related initiatives in their
pillar.
Investment Committee (Investments Pillar)
The Investment Committee is responsible for the
oversight of the Investment Policy including its specific
ESG exclusions and limits, as approved by the Board, so
as to ensure returns are maximised within the overall
risk appetite of the Company. The Investment
Committee comprises executive and senior management
and reports to the Board through its Chair the Group
CFO.
Corporate Social Responsibility Directive
Project Steering Committee (Disclosures Pillar)
FBD are required to report according to ESRS from 1
January 2024. Throughout the reporting period, a CSRD
project team sponsored by the CFO was in place to
deliver the required reporting in line with the required
application timelines. The CSRD Project Steering
Committee comprises senior management across the
Group to provide accountability, direction, oversight and
a decision-making forum for the programme.
Sustainability Working Group
The Sustainability Working Group supports the
Sustainability Committee in reviewing the work
performed under each of ESG strategic pillars and is a
forum for knowledge and idea sharing as well as
providing updates to the Sustainability Committee on
pillar activities. The Sustainability Working Group is
comprised of key personnel involved in pillar activity
from each area across the business.
Sustainability expertise across the Group
FBD seeks to ensure that its Board, Board Committees,
Executive Committees, Working Groups, ESG Reporting
Team and project team have the requisite experience
and qualifications to successfully deliver the Group’s
strategic goals, including sustainability. Sustainability is
an evolving area and FBD understands that for
sustainability to be integrated and prioritised
effectively, its paradigms need to be understood and
implemented across multiple departments. As a result,
FBD has invested in sustainability literacy through
academic qualifications and experience built up through
years of ESG reporting as well as research and
interaction supplemented with the use of ESG
consultants. FBD engaged the support of external
consultants to assist with an ESG strategy appraisal,
determining a climate scenario baseline, conducting a
Double Materiality Assessment in accordance with the
ESRS and with CSRD project support. Training was
provided to the Board Audit Committee by external
consultants to ensure FBD were in a position to report
under CSRD.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
108
The main features of Internal Control in relation
to Non-Financial Reporting which support the
preparation of the Sustainability Statement are
as follows:
•
A comprehensive Policy architecture is in place
addressing material impacts, risks and opportunities;
•
A defined ESG Sustainability Governance
Framework;
•
An appropriately skilled cross functional CSRD
reporting project team and sustainability working
groups operating under the supervision of
experienced management;
•
ESG considerations integrated across all aspect of
the business including strategy, business model,
governance, decision-making, Risk Management and
Compliance Framework;
•
Defined targets and metrics are identified and
monitored;
•
Data validation for all metrics including the use of
appropriate software sources where possible;
•
Preparation and review of qualitative and
quantitative disclosure checklists;
•
Controlled process flow from data collection to
ultimate disclosure including the appropriate level of
management review. Key assumptions as well as any
judgements and/or estimates used throughout the
Non-Financial Reporting process are reviewed by
senior management before being presented to the
Audit Committee for approval;
•
Consistency checks of sustainability/ESG related
disclosures across general purpose financial
reporting and other public disclosures;
•
Board Audit Committee review of the Sustainability
Statement in detail including key methodologies,
judgements and estimates used in their preparation;
•
Board Risk Committee oversight of sustainability-
related risks and integration of the risks into the Risk
Management Framework;
•
Internal Audit review key processes, projects and
systems as part of the control environment.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
109
DMA Outcome
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
110
ENVIRONMENTAL
SOCIAL
GOVERNANCE
ESRS E1
ESRS S1
ESRS G1
Climate Change
Own Workforce
Business Conduct
ESRS E2
ESRS S2
Pollution
Workers in the Value Chain
ESRS E3
ESRS S3
Water and Marine Resources
Affected Communities
ESRS E4
ESRS S4
Biodiversity and Ecosystems
Consumers and End Users
ESRS E5
Resource Use and Circular
Economy
Material topics
Immaterial topics
On completion of the DMA, we have concluded that there are
four topical ESRS which are material to FBD, details of which are
outlined within this report. We identified farm safety as an
entity-specific sustainability matter under S4. The DMA
approach and outcome was approved by the Sustainability
Committee in May 2024, and by the Audit Committee in
October 2024 .
E1 – CLIMATE CHANGE
S1 – OWN WORKFORCE
S4 – CONSUMERS AND END USERS
G1 – BUSINESS CONDUCT
DOUBLE MATERIALITY MATRIX
A mapping of FBD's material sub-topics, sub-sub topics and one entity-
specific topic in order of impact and financial materiality is displayed on the
matrix below.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
111
high
low
high
low
FINANCIAL MATERIALITY
IMPACT MATERIALITY
S1.D/S1.G/S4.J
S1/S4
G1.P
S4.K
S1.F
S1.E
S1/S4
G1.N
G1.O
G1.M
E1.B
E1.A
S1.C/S1.H/S1.I/S4.L
ENVIRONMENTAL
ESRS E1 Climate Change
E1.A Climate change adaptation
E1.B Climate change mitigation
SOCIAL
ESRS S1 Own Workforce
S1.C Health and safety
S1.D Secure employment
S1.E Working time
S1.F Gender equality and equal pay for
work of equal value
S1.G Training and skills development
S1.H Diversity
S1.I Work-life balance
ESRS S4 Consumers and End-Users
S4.J Privacy
S4.K Access to (quality) information
S4.L Entity-specific: farm safety
GOVERNANCE
ESRS G1 Business Conduct
G1.M Corporate culture
G1.N Protection of whistle-blowers
G1.O Management of relationships
with suppliers including
payment practices
G1.P Corruption and bribery
Material Impacts, Risks and Opportunities
by topic and sub/sub-sub topic
The table below contains a breakdown of FBD's material sub-topics, sub-sub
topics and one entity-specific topic under each topical ESRS and the related
IROs.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
112
E1 Climate Change
Climate Change
Adaptation
Climate Change
Mitigation
S1 Own Workforce
Health & Safety
Work-life Balance
Secure Employment
Working Time
Training & Skills
Development
Gender Equality and Equal
Pay for Work of Equal Value
Diversity
S4 Consumers and
End-Users
Privacy
Access to (quality)
information
Entity-Specific: Farm Safety
G1 Business
Conduct
Corporate Culture
Corruption and Bribery
Management of
Relationships with Suppliers
Protection of
Whistle-blowers
ENVIRONMENTAL
SOCIAL
GOVERNANCE
IRO legend
Positive Impact
Negative Impact
Opportunity
Risk
IRO listing on page
113-118
Material sustainability-related Impacts
Risks and Opportunities Identified
The following tables list the sustainability-related IROs we identified and assessed as material from
our DMA process. As shown in the matrix on page 111, four out of the ten Topical Standards are
material to FBD. Each material Topical Standard is presented in the following tables, where we specify
the sub-topics, sub-sub-topics and entity-specific topic that our material IROs relate to, e.g. climate
change mitigation and climate change adaptation. Brief descriptions of the material IROs are included
in the tables. Time horizons shown are as prescribed by the ESRS, with short being within one year,
medium term 1-5 years and long-term being greater than 5 years.
Disclosures relating to each of our identified IROs are provided in line with ESRS disclosure
requirements. More information on how we address our IROs is included in the section ‘Future-proofing
our Impact, Risk and Opportunity management process’ on pages 125 to 127.
E1 – Climate Change
Incentivisation for adaptation solutions – FBD can have a positive
environmental impact by developing its customer offerings through changes
to risk appetite, product design and pricing to support implementation of
sustainable "adaptation solutions".
N/A
Medium
Own
Operations
Increased claims due to climate events – Increased frequency and severity of
natural disasters could expose FBD to higher-than-expected property and
damage claim pay outs.
Physical
Risk
Medium
Own
Operations
Cost / Availability of reinsurance cover – Increased frequency or severity of
weather events could lead to an increase in FBD’s reinsurance coverage
costs, or alternatively could reduce the level of reinsurance which FBD can
take on, increasing the magnitude of exposure to losses.
Physical
Risk
Medium
Own
Operations
Financial Impact of other climate related events – Events such as sea level
rise, variability in temperature or precipitation and water stress could lead to
increased operating costs for FBD in relation to climate change adaptation
measures, changes in revenue, impact of changes in supply chain costs and
reliability, and increased cost of capital or potential write-offs. Other
financial impacts may include a shift in demand for products and services,
changes in loss ratios and profits or, changes in loss frequency and/or
severity.
Physical
Risk
Long
Own
Operations
Reduced opportunities arising as a result of sustainable investment strategy
– By focusing its investments towards sustainable strategies, FBD may forgo
opportunities in other areas, resulting in decreased risk/return efficiency
and/or profitability of the investment portfolios.
Transition
Risk
Medium
Downstream
Asset Management – Due to the potential future low market demand for
carbon intensive assets, FBD may experience reduced returns on and/or be
unable to dispose of high carbon intensive assets in its investment portfolio,
leading to a decrease in overall investment portfolio return/profitability.
Transition
Risk
Medium
Own
Operations
Climate Change Adaption
Risk
type
Time to
Impact
Value Chain
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
113
Positive Impact
Negative Impact
Opportunity
Risk
Shrinking Insurance Market – There is a risk that legislative and policy
changes aimed at climate change adaptation measures may lead FBD to
experience a financial impact as a result of reduced insurance premiums and
insurable activity
Transition
Risk
Medium
Own
Operations
Pricing – FBD can enhance pricing of climate risk, leading to optimisation of
underwriting performance and profit margins.
N/A
Medium
Own
Operations
Capital planning – By continuing to assess the impact of physical climate risk
and related scenario analysis, FBD can determine the impact on its capital
and take appropriate measures to address any impacts therefore increasing
financial stability and security for shareholders.
N/A
Medium
Own
Operations
Capital planning – Failure to keep up to speed with physical climate risk and
related scenario analysis can lead to difficulties in planning and determining
impact on FBD capital, thus increasing financial risk and reducing security for
shareholders.
Transition
Risk
Medium
Own
Operations
New Offerings – FBD may generate revenue from new insurance products
and underwriting propositions that contribute to climate change adaptation.
N/A
Medium
Own
Operations
Reputation risk – Failure by FBD to adequately consider and respond to the
impact of climate change on its business could lead to a loss of trust within
the local community and within the market, potentially leading to fewer
customers and resulting in a financial impact.
Transition
Risk
Medium
Own
Operations
Climate Change Adaption
Risk
type
Time to
Impact
Value Chain
Insurance industry supporting GHG intensive activities – FBD can have an
indirect negative impact on overall GHG emissions and the climate, through
both the insurance of and investments in GHG intensive industries if the
business strategy and support measures like advocacy do not evolve to
support climate change mitigation.
N/A
Medium
Downstream
Improved returns through additional sustainable investments – As the
demand for sustainable products and services grows out into the future, FBD
could improve its return on investment by investing in additional greener,
climate-friendly activities within its investment portfolio.
N/A
Medium
Downstream
Insurance supporting sustainable activities – FBD may have an indirect
positive impact on emissions reduction through the provision of insurance to
businesses or customers trialling solutions to reduce greenhouse gases.
N/A
Medium
Downstream
Market share – Failure by FBD to implement effective climate change
mitigation measures could negatively impact FBD’s market position and
reputational standing, leading to an overall reduction in profitability due to
decreased customer numbers.
Transition
Risk
Long
Own
Operations
Climate Change Mitigation
Risk
type
Time to
Impact
Value Chain
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
114
Positive Impact
Negative Impact
Opportunity
Risk
S1 – Own Workforce
Health & Safety Policies - FBD has a positive impact on our workforce, and their
health and wellbeing, by upholding adequate health and safety practices within the
organisation and providing employees with a safe working environment.
Short
Own Operations
Working conditions - Health and safety
Time to
Impact
Value Chain
Work life balance – FBD has a positive impact on the work-life balance of its
employees through the implementation of policies on regular breaks, annual leave etc.
This means that employees have sufficient time away from work commitments, which
is beneficial for employee physical and mental wellbeing.
Short
Own Operations
Working conditions - Work-life balance
Time to
Impact
Value Chain
Increased productivity – By offering good working conditions and training and
development programs for our employees, FBD can improve overall productivity,
which can enhance FBD’s reputation, encourage new product development and
improve customer service, leading to business growth.
Medium
Own Operations
Secure employment – FBD has a positive impact on its employees and on their job
security by offering them secure employment, which enhances employees’ sense of
belonging and reduces anxiety about job security, enabling employees to achieve
fulfilment in their role.
Medium
Own Operations
Working conditions - Secure employment
Time to
Impact
Value Chain
Working time – FBD can positively contribute to the lives of employees by ensuring
all employees are provided with sufficient working time and no individual is hired on a
zero hour contract.
Medium
Own Operations
Working time – By ensuring consistency in employee workloads and by giving
adequate notice of any requirement for increased working time, FBD has an
opportunity to positively contribute to employees working hours and satisfaction,
leading to reduced employee turnover and lower recruitment costs.
Short
Own Operations
Working conditions - Working time
Time to
Impact
Value Chain
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
115
Positive Impact
Negative Impact
Opportunity
Risk
Training – FBD positively impacts employee satisfaction by providing education,
training and development for employees.
Medium
Own Operations
Increased productivity – Through the provision of good working conditions and
effective training and development programmes, FBD can enhance its reputation and
attract top talent, potentially leading to improved productivity, new product
development and improved customer service, leading to business growth.
Short
Own Operations
Equal treatment and opportunities for all -
Training and skills development
Time to
Impact
Value Chain
Gender equality – FBD has a positive impact on employees and diversity within the
workforce through focus on gender balance and equality.
Short
Own Operations
Gender equality – A failure by FBD to uphold gender equality practices within the
workplace or to address any gender pay gap within the organisation may result in
employees feeling alienated from the company and lead to increased staff turnover,
ultimately increasing operating expenses.
Medium
Own Operations
Equal treatment and opportunities for all - Gender
Equality and Equal Pay for Work of Equal Value
Time to
Impact
Value Chain
Diversity – FBD has a positive impact on the lives of employees by championing
diversity and inclusion within its operations.
Medium
Own Operations
Equal treatment and opportunities for all - Diversity
Time to
Impact
Value Chain
S4 – Consumers and/or end-users
Data Security – FBD could have a negative impact on consumers should they fail to
manage consumer data appropriately. Failure to have appropriate organisational and
technical measures in place may result in a data breach involving consumer personal
data.
Short
Downstream
Data Security – A failure by FBD to safeguard the integrity and confidentiality of all
consumers information which has been entrusted to FBD for the purposes of
providing and servicing insurance. Failure to do so may result in detrimental harm to
FBD Group.
Short
Own Operations
Information-related impacts for consumers and/or end-users - Privacy
Time to
Impact
Value Chain
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
116
Positive Impact
Negative Impact
Opportunity
Risk
Customer Service – FBD has a positive customer impact on the overall
insurance market by providing a valuable and quality service to customers,
including access to appropriate information.
Medium
Downstream
Reputation – By providing valuable, trustworthy and transparent services and
continuously improving products, FBD can enhance customer trust and
loyalty and improve reputation leading to increased revenue.
Medium
Own
Operations
Information-related impacts for consumers and/or
end-users - Access to (quality) information
Risk
type
Time to
Impact
Value Chain
Farm Safety - FBD can have a positive impact on the health and safety of farmers
through promoting and encouraging farm safety to their farming customers through
appropriate learnings and guidance.
Short
Downstream
Entity- specific: Farm safety
Time to
Impact
Value Chain
G1 – Business Conduct
ESG-linked incentives – FBD can have a positive impact on the successful
implementation of climate change strategy and measures, by linking remuneration
and incentives to ESG performance, improving motivation from senior leadership to
prioritise the ESG agenda. FBD currently has ESG-linked incentives in place for the
CEO and CFO.
Medium
Own Operations
Robust governance – Creating a robust governance structure with clear responsibility
and accountability to increase oversight and control of ESG performance can help
FBD to identify opportunities to achieve strategic targets with the intention of
climate mitigation.
Medium
Own Operations
Engaging in unethical business conduct – Engagement by FBD in unethical business
conduct could damage our reputation and lead to legal repercussions and could
result in a financial impact to FBD.
Medium
Own Operations
Governance structure – Failure by FBD to maintain an adequate governance structure
may lead to regulatory and/or reputational issues which could result in a financial
impact to FBD.
Medium
Own Operations
Corporate Culture
Time to
Impact
Value Chain
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
117
Positive Impact
Negative Impact
Opportunity
Risk
Compliance management – FBD have by establishing a Compliance Function including
Money Laundering Reporting Officer (MLRO), Board approved compliance
management framework and supporting structures, policies and guidelines (including
an annual compliance plan and employee regulatory and consumer protection
training) can avoid incidents of corruption and bribery and have a positive impact on
the transparency of the insurance sector. This can have a positive impact on all
stakeholders that FBD engages with.
Medium
Own operations
Corruption and Bribery - Prevention and detection including training
Time to
Impact
Value Chain
Reputation – Any existence of corruption or bribery in the value chain could
negatively impact the reputation of FBD as a reputable insurance provider and could
have a financial impact due to reduced customer trust and potential legal penalties.
Medium
Own operations
Corruption and Bribery - Incidents
Time to
Impact
Value Chain
Delayed Payments to Suppliers – A delay in payments to suppliers by FBD may result
in strained supplier relationships, reduced supplier performance, financial penalties
and a damaged reputation, negatively impacting the financial standing of FBD.
Medium
Upstream
Management of Relationships with Suppliers
Time to
Impact
Value Chain
Whistleblowing policy implementation – FBD has a positive impact on the lives of our
employees by creating an environment where employees are encouraged to speak up
if they witness conduct not in line with FBD's values. There is a non-punitive, well-
publicised whistleblowing hotline in place at FBD. This has a positive impact on the
wellbeing of all employees as they are comfortable raising issues which can be
resolved. FBD has a speak up policy and an e-learning course in place that employees
must complete.
Short
Own operations
Protection of Whistle-Blowers
Time to
Impact
Value Chain
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
118
Positive Impact
Negative Impact
Opportunity
Risk
Double Materiality Assessment Process
1.
Top Down Assessment
FBD considered what were material topics to our organisation and validated the topics through
looking at peers and other available assessments to form a long list of ESG-related topics. We looked
across other industries outside Insurance to build our knowledge and verify what we considered
material.
The theme of the research centred on what ESG topics appeared to be relevant to peers.
Once all topics were identified, each topic was assigned a level of priority for each peer, based on the
materiality of the topic to the peer. In cases where a materiality assessment had not been performed,
the priority of the topic was assessed based on the level of discussion of the topic by the peer.
A screening for relevant topics was conducted, initially through desktop analysis whereby the topics of
‘Pollution’, ‘Water’, 'Biodiversity', ‘Circularity’, ‘Workers in the value chain’ and ‘Affected communities’
were deemed not relevant.
2. Value Chain Analysis
In line with the requirements of ESRS 2, and EFRAG IG 2, our Sustainability Statement includes
information about all material IROs including those that arise or may arise beyond our own operations
in the context of our business relationships in the upstream (e.g. suppliers) and downstream (e.g.
customers, brokers, investment managers, partnerships) value chain. CSRD does not require
information on each and every actor in the Value Chain (VC), but rather the inclusion of material VC
information. As such, our assessment focused on relationships that are likely to be associated with
material IROs.
We considered our full range of activities, resources and relationships relative to our business model
and the external environment in which we operate and identified the VC actors for FBD based on two
key criteria outlined in the Value Chain Implementation Guidance (VCIG) issued by EFRAG, namely:
•
Exposure to Material Impacts (or ‘hot spots’) that expose FBD to the likelihood of actual and
potential impacts (negative/positive) (under E, S and G); and
•
Dependency of FBD on the VC actor.
Exposure to Material Impacts: We determined whether our association with each actor in the VC
may result in FBD being exposed to material impacts, and whether these impacts are environmental,
social, or governance related.
Dependency: We determined whether our dependence on particular VC actors results in an exposure
to financial risks or opportunities.
IROs were developed for relevant VC actors and their activities as part of step 3.
On the next page is an overview of our value chain showing where our material sustainability related
IROs arise across our full value chain.
All IROs are connected to our strategy and business model. Key inputs, business activities and outputs
are outlined within our Business Model on page 16. See Our strategy on page 17.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
119
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
120
UPSTREAM
Supply chain workers
and our investors
Our Reinsurers
Fuel and energy for our
buildings and operations
Our investors
Our Suppliers
Supply chain
employees
OWN OPERATIONS
Customer Service
Product development
and underwriting
Manage claims
Our workplaces
Sales and marketing
Capital management and
investment policy
Regulatory engagement and
compliance management
Waste generated from our
operations
Corporate culture and
Whistle-blower protection
DOWNSTREAM
Our customers and
wider society
Insurance Cover for
our Customers
Financial advisory
services
ESG advocacy and
community contribution
Our investments
Positive Impact
Negative Impact
Opportunity
Risk
IRO listing on page 113-118
Complaints Management
Career Opportunities
Our people and
our workplace
3. IRO Identification
FBD developed a longlist of IROs encapsulating the entire scope of our operations, taking into
consideration our specific circumstances as well as sustainability matters covered by ESRS topical
standards. Business conduct matters were considered across FBD's own operations relevant to how
the criteria are defined within the Irish Insurance Industry.
We then linked the IROs to a position in the VC (upstream, own operations or downstream), and a VC
actor who was deemed ‘relevant’ for a particular ESG area.
As part of the creation and assessment of the IRO list, we considered the connection of external
dependencies such as exposure to climate hazards or changes in regulation that address systemic
risks and impacts with risks and opportunities for FBD, and identified IROs to reflect this. These were
typically framed as risks or opportunities, where the opportunity was linked to the realisation of a
positive impact and a risk was related to the failure to address a potential negative impact.
We determined the relevant time horizons in which the IROs may materialise. The time horizons used
were those prescribed by the ESRS in ESRS 1 6.4 (Paragraph 77) and applied by FBD, with short being
within one year, medium term 1-5 years and long-term being greater than 5 years.
Once a comprehensive list of IROs was developed with coverage over the identified topics, sub-topics
and/or sub-sub-topics, senior stakeholders in FBD reviewed and provided feedback on the IROs. One
entity-specific impact was identified.
4. Stakeholder Mapping and Engagement
Our commitment to ensuring excellent lines of communication exist and are fostered between the
Group and its stakeholders is underpinned by our Board approved Stakeholder Framework - for details
on how the Board are informed about the views and interests of affected stakeholders, including
sustainability related impacts, see Stakeholder engagement on page 62. The insights gained from our
ongoing due diligence processes were leveraged to inform our materiality assessment. While we
continuously evolve our strategy and business model, informed by the interests and views of our
stakeholders, no specific amendments to our strategy and business model were required during the
period or are anticipated as a direct result of this stakeholder engagement.
Ongoing Dialogue with Stakeholders
Stakeholder
How engagement
is organised
Purpose of
engagements
Example of outcomes
from the engagements
CONSUMER
• Customer service
• Claims handling
• Consumer due diligence
• Periodic reviews
• Market research
• Formal complaint process
• Building trust
• Providing sustainable
solutions
• Product/ service improvements
• Increased customer awareness
OUR PEOPLE
• Personal development dialogues via
performance management structure
• Annual employee surveys
• Independent Non-Executive Director
appointed for Engagement with the
Workforce
• Business updates through Town Halls
• Employee Representative bodies
• Understand employees’
views and experiences
• Contribute to a
sustainable workplace
• Internal policy improvements
and updates
• Communication from
management
INVESTORS
• Investor calls, emails and meetings
• Periodic investor updates - AGM,
Results briefings and Investor
Roadshows
• Understanding investor
expectations to
sustainability
• Attracting responsible
investors
• Responses to investor queries
• Consider investor requirements
around ESG reporting
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
121
SUPPLIERS
• Supplier due diligence
• Promoting responsible
sourcing
• Protecting human rights
in the value chain
• Informed selection of suppliers
• Supplier improvement plans
COMMUNITIES
• Sponsorship of local events
• Educational grants
• Farm safety workshops
• Industry body engagement e.g.Teagasc
• Building trust
• Contributing to the
community’s social and
economic development
as part of a wider ESG
strategy
• Increased brand awareness
• Positive social impact
GOVERNMENT
& AND
INDUSTRY
BODIES
• Direct dialogue with policymakers
• Participate in working groups
• Co-funded investment in Moorepark
with Department of Agriculture
• To meet and comply
with Government
policies
• Promote action on ESG
issues
• Direction from Government and
Industry Bodies may be used to
inform Sustainability strategy
and IRO Management approach
REGULATORS
• Answering queries from Regulators
• Regular engagement and scheduled
meetings with Regulators.
• To meet Regulators
evolving expectations to
the highest standard
• Compliance with regulatory
requirements
• Regulatory returns
As well as leveraging on regular dialogue with affected stakeholders, we reached out to stakeholders
specifically in the context of our materiality assessment. This ensured we developed an understanding
of how employees with particular characteristics, those working in particular contexts, or those
undertaking particular activities may be at greater risk of harm as well as how consumers and/or end-
users with particular characteristics, or those using particular products or services, may be at greater
risk of harm.
To prioritise and score IROs, we engaged with representatives from the Board of Directors, senior
management and employees across a wide range of business units. We also engaged with a sample of
external stakeholders across each of our stakeholder groups identified.
Engagement was through interview or survey or both. The results of these surveys and interviews were
used as an input in the IRO scoring, where we considered, if any IRO scores should be adjusted to
reflect stakeholder views. The next section provides a detailed explanation of the stakeholder
engagement and prioritisation completed.
4.1 Stakeholder Cohorts for the Double Materiality Assessment
We identified stakeholders as groups which fall into the following two categories: affected
stakeholders and users of the Sustainability Statement.
•
Affected stakeholders are individuals or groups whose interests are affected or could be affected
(positively or negatively) by FBD’s activities, and its direct and indirect business relationships.
These stakeholders were engaged with directly where possible.
•
Users of Sustainability Statement are the primary users of financial reporting, as well as other
users.
Please note: some stakeholders may belong to both groups. Stakeholders provided their perspective
on each sustainability matter.
4.2 How we engaged with stakeholders to score the Impacts, Risks and
Opportunities
Method 1
Method 1 involved interviews and follow-up surveys with internal FBD stakeholders.
To score IROs, we engaged with representatives from the Board of Directors, senior management, and
employees. We spoke to individuals across a wide range of business functions to understand:
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
122
•
The different ways FBD is having, or could have, impacts on the environment and society through
its operations.
•
The different ways ESG-related risks or opportunities could manifest for FBD.
Method 2
We also engaged with internal and external stakeholders not called to interview through surveys,
asking them several open-ended questions.
In addition to open-ended questions, stakeholders were sent a follow-up survey to score all
sustainability matters on a scale of 1-5 (insignificant to critical) from both a financial and impact
perspective.
Collation and input into scoring
The results of these interviews and surveys were used as an assessment of the completeness of the
material impacts identified and as an input in the IRO scoring process, where we considered, if any IRO
scores should be adjusted following stakeholder input.
4.3 Scoring
As a general principle, IROs are considered gross (i.e. before any mitigating actions) in the materiality
assessment. This is linked to the objective of providing information on the management of IROs by the
Group over time.
Impact Materiality
Based on the output of the interviews and surveys, we consolidated the results for each topic, scoring
each Impact against the criteria as outlined in ESRS 2 for impact materiality, specifically: scale, scope,
remediability and likelihood. For actual or potential impacts, the materiality is assessed by reference to
the severity of such impacts on people and/or the environment, not on the basis of the effects it has
on the Group and its financial prospects. Stakeholder engagement described in section 4.2 above is
central to correctly assessing materiality of impacts.
For actual negative impacts, materiality is based on the severity of the impact, while for potential
negative impacts it is based on the severity and likelihood of the impact. Severity is based on the
following factors:
(a) the scale;
(b) scope; and
(c) irremediable character of the impact.
Scale, scope and remediability are scored on an intensity scale of 1-5, as follows:
Scale
Scope
Remediability
5
absolute
global/total
irreversible
4
high
widespread
very difficult to remedy or long-term
3
medium
medium
difficult to remedy or mid-term
2
low
concentrated
remediable with effort (time & cost)
1
minimal
limited
relatively easy to remedy or short-term
0
none
none
very easy to remedy
An Impact is assessed as material and subject to mandatory reporting if it reaches a threshold score of
8. A threshold score of 8 out of 15 across the three severity categories accurately captures impacts
that have a high scale, high scope and low remediability. In cases where scale of an impact is assessed
as absolute and/or scope of impact is assessed as global/total, and/or remediability of impact is
assessed as irreversible, the threshold score is deemed to have been met and the impact is considered
material. Therefore any of the three characteristics individually (scale, scope, and irremediable
character) can make an impact severe. For potential impacts, probability weighting is applied to the
severity scores.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
123
For positive impacts, materiality is based on:
(a) the scale and scope of the impact for actual impacts; and
(b) the scale, scope and likelihood of the impact for potential impacts.
Scale, scope and likelihood of positive impacts are scored the same as negative impacts outlined
above. Positive impacts severity scores do not incorporate remediability by definition, however, total
scores for positive impacts are weighted proportionately for comparability with negative impacts.
Scope
How widespread the
negative or positive
impacts are on the
environment or people.
Scale
How grave the
negative impact is or
how beneficial the
positive impact is for
people or the
environment.
Remediability
Whether and to what
extent the negative
impacts could be
remediated. Applies to
negative impacts only.
Likelihood
Assess the likelihood
of the impact
occurring. Only score
likelihood for potential
impacts.
Score
A score above the agreed
materiality threshold
indicates that an Impact is
Material and subject to
mandatory reporting.
Financial Materiality
Financial materiality focuses on the assessment of the risks and opportunities of the respective
sustainability matter on FBD’s business. Financial materiality focuses on the effects of sustainability
matters on the undertaking’s cash flows, financial performance and position, access to finance or cost
of capital in the short, medium or long term, as such effects are material to the undertaking’s investors.
Based on the output of the interviews and surveys, we consolidated the results for each sustainability
matter, scoring each risk and opportunity against the criteria as outlined in ESRS 2, specifically:
magnitude (size of the financial effect), and likelihood. Size of the financial effect of each risk and
opportunity were estimated and assigned a rating on an intensity scale of 1-5, as follows:
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
124
SEVERITY OF IMPACT
Actual negative impacts
materiality score
=
Scale
+
Scope
+
Remediability
Actual positive impacts
materiality score
=
Scale
+
Scope
ACTUAL
IMPACTS
SEVERITY OF IMPACT
Potential negative impacts
materiality score
=
Scale
+
Scope
+
Remediability
x
Likelihood
Potential positive impacts
materiality score
=
Scale
+
Scope
x
Likelihood
POTENTIAL
IMPACTS
Note: In the case of a potential negative human rights impact, the severity
(scale, scope, remediability) of the impact always overrules its likelihood
For potential impacts, materiality also includes consideration of their likelihood
Magnitude
5
absolute
4
critical
3
significant
2
important
1
minimal
0
none
A risk or opportunity is assessed as material and subject to mandatory reporting if it reaches a
threshold score of 2. A threshold score of 2 aligns to the FBD Risk Management Framework.
All risks that were deemed to be material following our DMA were added to the Risk Register, if they
were not captured already, allowing them to be assessed and prioritised relative to other types of
risks. (See section on Future-proofing our Impact, Risk and Opportunity management process for more
information).
For potential risks and opportunities probability weighting is applied to the magnitude scores to
reflect likelihood of occurrence.
5. Validation and Approval
We conducted a series of internal validation workshops with key individuals within the business,
including executive management, to discuss the outputs from the scoring completed on the IROs
identified, before finalising the scoring. The validation sessions included consideration of the internal
and external stakeholder interviews and surveys.
Following completion of the validation workshops the DMA outcome was reviewed, constructively
challenged and subsequently approved by the Sustainability Committee in May 2024, and approved by
the Audit Committee in October 2024.
Future-proofing our Impact, Risk and
Opportunity management process
Following the completion of our DMA, we have taken steps to integrate the process for identifying,
assessing and managing IROs into our overall management process.
In Q4 2024, we approved our ESG Due Diligence Framework and rolled out an Impact, Risk and
Opportunity (IRO) Management approach, to supplement the Risk and Control Self Assessments that
business units complete on an ongoing basis.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
125
ACTUAL
RISKS &
OPPORTUNITIES
POTENTIAL
RISKS &
OPPORTUNITIES
Actual risk
materiality score
=
Magnitude
Actual opportunity
materiality score
=
Magnitude
For potential risks and opportunities, materiality also includes
consideration of their likelihood
Potential risk
materiality score
=
Magnitude
x
Likelihood
Potential opportunity
materiality score
=
Magnitude
x
Likelihood
As outlined in our Sustainability Governance Framework on pages 106 to 109 risks and negative
Impacts are integrated into, and managed and monitored through our established risk management
processes. Opportunities and positive Impacts are managed and monitored through our sustainability
management processes.
We recognise the journey that our organisation, as well as the industry and society at large is on, and
we will look to refine our sustainability practices as the sustainability reporting landscape evolves
including the growth of green technology, increased awareness and reporting across our VC and
monitoring of evolving market practices and the geopolitical response. We have assigned owners to all
our IROs, and we are embedding regular monitoring and reporting on the implementation of action
plans to manage IROs.
Climate risk
In addition to our IRO management approach, we have implemented an approach to formalise how we
monitor and manage Climate Risk on an ongoing basis. The details of this approach are outlined as
part of the Climate Resilience Analysis on pages 128 to 130. Outputs from our climate resilience
exercise have been included in our material impacts, risks and opportunities, and we have designed
governance processes that will allow us to incorporate Climate Risks into our overall due diligence
framework. These governance processes will be implemented in 2025.
IRO treatment strategies
In line with ESRS 2 minimum disclosure requirements on policies, actions and targets (MDR-P, MDR-A,
MDR-T), we will look to implement strategies, policies, actions and targets to help manage material
sustainability matters and IROs where appropriate. The introduction of a strategy, policy, target or
action may not always be deemed necessary. In addition, in some cases a policy may not be the most
appropriate tool for managing an IRO. FBD employs different strategies for the management of IROs
depending on the IRO type.
The creation of strategies, policies, action plans and targets is assigned to the IRO Owner, with
support from the ESG Reporting team and Risk Function. Strategies, policies, actions and targets are
signed off by the Sustainability Committee, who receive progress reports on their implementation. In
addition, the Executive Risk Committee receive reports on the Negative Impacts and Risks, which they
can use to evaluate FBD’s overall risk profile.
This is the first year FBD has conducted a DMA and FBD will continue to monitor its IROs in future,
making improvements to the IRO management process. FBD will regularly assess its DMA and will
monitor any significant changes to the business model that could impact our DMA.
Negative impacts
FBD will aim to prevent, detect, manage and mitigate negative Impacts on an ongoing basis. Material
negative Impacts will generally be addressed through policies and added to the Risk and Control Self-
Assessment (‘RCSA’) process and reported to the Executive Risk Committee, with any actions being
managed on an ongoing basis.
Positive impacts
FBD will aim to capitalise on positive Impacts by creating action plans, progress against which will be
reported on a regular basis to the Sustainability Committee.
Risks
Risks are managed in accordance with FBD’s Risk Management Framework and related policies with
new policies implemented to address new risks as required. Progress on risk management and actions
will be captured through the established RCSA process and reported to the Executive Risk Committee.
Opportunities
FBD aim to capitalise on Opportunities by creating action plans, progress against which will be
reported on a regular basis to the Sustainability Committee.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
126
Targets
FBD will create a target for an IRO, where appropriate. This is at the discretion of the IRO Owner.
Targets will be reviewed and signed off by the appropriate governing committee(s) depending on the
business area and by the Sustainability Committee.
IRO MANAGEMENT APPROACH
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
127
POSITIVE
IMPACTS
OPPORTUNITIES
RISKS
NEGATIVE
IMPACTS
Treatment strategy
Assess & Action
Prevent
Detect
Manage
Mitigate
Action Plans/Strategies
Targets and Metrics
Risk Management
Process (includes
policies)*
*Risk management process may involve creating an Action plan
Environmental
Considers how a company impacts the environment around it and includes issues such as climate
change, biodiversity, nature, carbon emissions, waste and pollution.
European Sustainability Reporting
Standard (ESRS) E1 - Climate Change
FBD seeks to do business in a sustainable way evidenced through our investment choices, advocacy
activity and alignment to the Principles of Sustainable Insurance. Addressing the risks posed by
climate change is vital and strategically important to FBD, from both a commercial and stakeholder
perspective and we have adopted a number of policies in order to adapt to and mitigate the effects of
climate change.
Climate Resilience Analysis
In 2024, FBD undertook an exercise to enhance the approach to analysing climate change risk in our
business, using the Central Bank of Ireland’s “Guidance for (Re)Insurance Undertakings on Climate
Change Risk” as overarching principles. The exercise contained both a qualitative and quantitative
assessment, and its purpose was to consider the impact of climate change over the short, medium,
and long-term as set out in the CBI Guidance across all areas of the business and to further integrate
climate risk into FBD’s governance and Risk Management Framework
To ensure alignment with CBI guidance four time horizons were used for the qualitative assessment –
current, 2030, 2040 and 2100. For the quantitative assessment, two time horizons were considered –
2030 and 2050. These time horizons match the ones used in the Central Banks and Supervisors
Network for Greening the Financial System (NGFS) framework, which was used to select a number of
climate scenarios and formed a key part of this analysis. This framework contains four plausible futures
detailed through seven scenarios.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
128
Climate Change Adaptation
Incentivisation for adaptation solutions
Enhanced pricing to optimise underwriting performance
Capital planning — increased stability
Revenue from new offerings
Increased claims due to climate event
Cost / availability of reinsurance cover
Financial impact of other climate related events
Reduced opportunities arising as a result of sustainable investment
strategy
Reduced returns on and/or difficulty disposing of high
carbon intensive assets
Reduction in insurable activity
Inadequate climate modelling – reduced stability
Reputation risk – Failure by FBD to adequately consider
and respond to the impact of climate change
E1 CLIMATE CHANGE
Climate Change Mitigation
Insurance supporting sustainable activities
Insurance industry supporting GHG intensive activities
Improved returns through additional sustainable
investments
Unsuccessful climate change mitigation measures
negatively impacting market share
IRO legend
Positive Impact
Negative Impact
Opportunity
Risk
IRO listing on page 113-118
NGFS SCENARIOS FRAMEWORK IN PHASE IV
After carefully examining each of the scenarios under the NGFS scenario framework, FBD selected the
Nationally Determined Contributions (NDCs) scenario as a baseline scenario. This scenario assumes
that currently pledged conditional NDCs are fully implemented and respective targets on energy and
emissions in 2025 and 2030 are reached in all countries, which leads to a slight decrease in long-term
physical risks due to newly announced commitments. The NDCs used as part of this scenario were
pledged in 2020/2021, however the scenario will be updated in 2025 when the next round of NDCs
are submitted by all countries. The NDCs scenario was selected due to its widespread use across the
insurance industry, as well its balance between the orderly and disorderly scenarios. The level of
physical and transition risk assumed in the NDCs scenario over the time horizon is summarised in the
table below.
NDC’s Scenario
Short-term (0-10yrs)
Medium-term (10-30yrs)
Long-term (30-80yrs)
PHYSICAL RISK
LOW/MEDIUM
MEDIUM
HIGH
TRANSITION RISK
MEDIUM
LOW
LOW
MEAN TEMPERATURE INCREASE
AT THE END OF TIME HORIZON
1.5°C
1.9°C
2.4°C
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
129
Disorderly
Too little, too late
Orderly
Hot house world
low
High
High
low
PHYSICAL RISKS
TRANSITION RISKS
Current
Policies
NDC’s
Fragmented
World
Delayed
Transition
Below
2oC
Net Zero
2050
(1.5OC)
Low
Demand
D
G
E
F
C
B
A
As FBD predominantly writes business in Ireland, the physical and transition risks in the Irish market
are most relevant for FBD. Ireland’s contribution to NDCs comes under the European Union NDCs
targets, and this will drive the level of transition risk in the Irish market.
In addition, two further counterfactual scenarios were selected:
Net Zero 2050: This scenario aligns with CSRD requirements for selection of a scenario that is
consistent with the Paris Agreement and limiting climate change to 1.5⁰C with no or limited overshoot
and includes immediate stringent policies.
Delayed Transition: This scenario assumes that global annual emissions do not decrease until 2030
as no new climate policies are introduced, and very stringent policies are introduced after 2030 to
limit warming below 2⁰C. This would lead to higher physical and transition risks than the Orderly
scenarios and is a plausible future outcome given current international progress.
To understand potential exposure to climate related risks under each of the above scenarios, FBD
established a list of risks and opportunities ("RO Universe") based on peer analysis, engagement with
internal FBD stakeholders and a physical risk assessment of FBD sites (including offices, buildings and
property). The RO Universe will be kept up to date by the FBD Risk Management team by use of
ongoing research, the IRO Management approach and physical risk assessments of FBD sites.
From the RO Universe, four components were selected for quantification and inclusion in FBD’s Own
Risks Solvency Assessment ("ORSA") document, based on the outcome of the qualitative assessment.
The approaches used for quantification of these four example components were:
•
Component 1: Asset shock on government bonds, corporate bonds and risk assets.
•
Component 2: Change in premium volume
•
Component 3: Loss ratio impact from climate-related claims.
•
Component 4: Operational resilience with focus on the impact of flood risk to FBD sites and
properties.
The above components were quantified under two time horizons, Short Term (Year 2030) and Medium
Term (2050), as assessment of longer term time horizons is more exploratory and qualitative in nature.
In all three scenarios, the impact on FBD is not expected to be material in the short term.
The results of the analysis are outlined below:
•
Political and Legal risks show the highest level of risk in the Net Zero 2050 and Delayed
Transition scenarios due to imposition of more policy and regulation in comparison to the NDC
scenario. The protracted implementation of policies in the Delayed Transition scenario result in
increased levels of risk in this scenario in the medium-term.
•
Economic risks are greatest in the Net Zero 2050 and Delayed Transition scenarios reflecting the
investment required to transition effectively across all sectors and the decreased appetite for
investments in carbon intensive sectors and locations.
•
Social risk associated with socio-economic disruption from global climate change is evident across
all three scenarios, accruing most prominently under Delayed Transition as policies are
implemented most stringently over short timescales.
•
Technology risks are greatest in the Net Zero 2050 and Delayed Transition scenarios, as Ireland
and the world transitions to renewables, there is increased risk associated with rapid transition
from traditional fossil fuel technologies to lower carbon alternatives.
•
Environmental risks are greatest in the NDC scenario due to increased levels of physical risk
when compared to the Net Zero 2050 and Delayed Transition Scenarios. By the medium-term
2050, trajectories of physical risk are broadly similar across all three scenarios with divergence
evident post 2050. Levels of environmental risk will have implications for FBD operations, claims
volume and supply chain.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
130
Policies
FBD has several policies to ensure that climate-related issues are fully integrated into the Group’s
wider business strategy. These policies cover a range of business areas within FBD's own operations,
including Underwriting, Investments and Risk Management. Some of our key policies, owners and
approvers are listed below.
Underwriting
Policy
Climate Change
adaptation
To clearly set out the Underwriting
approach in FBD and to ensure
compliance with the Risk Management
Framework.
To manage and recalibrate FBD's
products, risk appetite and pricing as
necessary in order to support climate
change adaptation.
Board, at
least annually
Pricing and
Underwriting
Committee
Pricing and
Underwriting
Forums
Chief
Underwriting
Officer
Product Oversight
and Governance
Policy
Climate change
adaptation
Climate change
mitigation
To clearly set out the approach to
product oversight & governance in FBD
and to ensure compliance with the Risk
Management Framework.
To consider climate change adaptation
during the product approval process.
Board, at
least annually
Pricing and
Underwriting
Committee
Underwriting
Product
Manager
Chief
Underwriting
Officer
Reputational Risk
Policy
Climate change
adaptation
To outline FBD's prudent and proactive
approach to managing reputational risk
including climate change impacts.
Board, at
least annually
Risk
Committee
Group Chief
Executive
Officer
Investment Policy
Climate change
adaptation
Climate change
mitigation
To maximise returns within the overall
Risk Appetite of the company as
approved by the Board of Directors.
The overriding philosophy is to protect
and safeguard the Group’s assets, to
ensure that the Group's capacity to
underwrite is not put at risk.
Board, at
least annually
Risk
Committee
Head of
Investments
ORSA Policy
Climate change
adaptation
To assess, in a continuous and
prospective way, the overall solvency
needs related to the specific risk
profile of the insurance company.
Board, at
least annually
Risk
Committee
Group Chief
Risk Officer
Capital
Management
Policy
Climate change
adaptation
To set out principles and guidelines
used by the Group for capital planning,
capital issuance, usage and
distributions. This includes internal
capital goals, reporting and monitoring
of capital position and internal
governance procedures around capital
policy.
Board, at
least annually
Risk
Committee
Group Chief
Financial
Officer
Non-Financial
Reporting Policy
Other
N/A
To set out how non-financial
information (including metrics and
associated qualitative disclosures) is
prepared and how risks are managed
to ensure its completeness, accuracy,
and timeliness.
Audit
Committee,
at least
annually
ESG
Reporting
Team
Group Chief
Financial
Officer
Policy
Topics
addressed
Relevant
IROs
Objectives
Approved
By
Monitored
by
Policy
Owner
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
131
Actions
During 2024, we have taken the following actions towards climate change adaptation and mitigation:
€000s
Decarbonisation of
investments
Investments:
• FBD remains ahead of its target to reduce the carbon intensity of
the corporate bond portfolio.
• The carbon intensity of the risk asset portfolio has been reduced
and is below the carbon intensity of the weighted average fund
benchmark.
Downstream
0
0
Decarbonisation
contributions
Strategic Implementation:
• In 2024, FBD committed to contributing €1.5 million towards new
agricultural research and education facilities at UCD Lyons Farm.
Construction of the new centre is due to commence in 2025. The
'UCD FBD Agricultural Science Centre’ will allow for an increase in
the number of undergraduate and postgraduate students, and UCD
staff studying and researching in the areas of agriculture, veterinary
medicine, environmental science, and sustainable production
systems, facilitate new education programmes in the areas of
animal science, animal health, crop science and sustainable food
production and be a venue to showcase the latest research to
agricultural advisers, farmer groups and the wider industry.
Downstream
1,500
0
Use of renewables
Buildings energy
efficiency
Energy efficiency
and consumption
reduction
Facilities
• FBD continues to purchase all its electrical energy from renewable
sources.
• FBD continue to review mechanical and electrical technology
upgrade opportunities, focusing on replacing end-of-life HVAC
systems with more energy efficient systems. FBD also replaced the
EDPAC air conditioning unit in the server room in head office with a
more efficient unit.
• In 2024, FBD embedded the process relating to management of
end-of-life ICT (Information & Communications Technology)
equipment to maximise recycling potential.
Own
operations
220
0
Scenario analysis
Risk management:
• In 2024, FBD undertook a climate resilience analysis to consider the
impact of climate change over the short, medium, and long-term
across all areas of the business. This exercise included the selection
of a baseline climate scenario as well as two counterfactual
scenarios and the quantification of the potentially most material
climate-related risks and opportunities under each scenario.
Own
operations
45
0
Carbon Disclosure
Project (CDP)
Disclosures:
• On an annual basis FBD completes voluntary disclosure to the CDP.
CDP is a non-profit charity which supports the global disclosure
system for investors, companies, cities, states and regions to
manage their environmental impacts. CDP takes independently
verified information supplied by FBD, and scores our progress on
climate action on a scale from A to F. FBD’s rating in respect of
2024 is a ‘B’ which is in the Management category and is defined by
CDP as “Taking coordinated action on climate issues”. This rating
remains unchanged from the previous year.
Own
operations
0
0
Decarbonisation
Lever
Action
Value Chain
Location
Resources
Allocated
GHG
Reductions
achieved
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
132
The following actions are planned into 2025 and beyond. The time horizons referred to below are the
same as those used by FBD to identify IROs, with short being within one year, medium term 1-5 years
and long-term being greater than 5 years.
Decarbonisation
Lever
Action
Time Horizon Value Chain
Location
Resources
Allocated
GHG
Reductions
expected
€000s
Transition plan
Strategic Implementation:
•
FBD does not currently have a transition plan.
While FBD may explore the development and
adoption of a transition plan in the future, as at
year end 2024 the timelines for this have not yet
been established. Any consideration of a
transition plan will also include examination of
the feasibility of implementing GHG emission
reduction targets.
Medium term
Own
operations
N/A
N/A
Asset Improvement
Plan
Use of renewables
Facilities:
•
FBD plan to have a sustainability survey carried
out on the Head Office property for an asset
improvement programme. The suggested scope
for an asset improvement programme includes, a
current asset performance review, improvement
pathways and next steps.
•
FBD plans to install solar panels in head office
and two sales offices in 2025.
Short term
Own
operations
129
TBD
Supply chain
decarbonisation
Procurement:
•
FBD are undertaking a Supplier ESG project
which is currently focused on knowledge sharing
and engagement with suppliers.
Medium term
Upstream
value chain
0
0
Climate change
reporting
Disclosures:
•
In 2024 FBD became a signatory of the UN
Environment Programme Finance Initiative
Principles for Sustainable Insurance ("UNEP FI
PSI"). As part of this initiative we will work to
further embed the principles into our business
and will continue to report annually on our
progress in implementing the principles.
•
FBD will continue to report annually under the
CDP in 2025 and beyond.
Long term
Own
operations
0
0
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
133
Targets
Exclusions
FBD’s Investment Policy includes exclusions from the corporate bond and in-scope risk asset
portfolios1. This policy includes an absolute target of zero investments in the following:
Activity
Exclusion
Controversial weapons
Exclude companies with any tie
Auto Civilian Firearms
Exclude companies with any tie
Nuclear weapons
Exclude companies which derive > 1% of their revenue from this source
Arctic drilling
Exclude companies which derive > 1% of their revenue from this source
Oil sand mining
Exclude companies which derive > 1% of their revenue from this source
Thermal Coal extraction
Exclude companies which derive > 1% of their revenue from this source
High polluters (fixed income)2
Exclude companies which produce > 3,000tonnes CO2e/$USDm revenue
This target was set by the Investment Committee in consultation with the investment managers and is
not directly linked to scientific evidence. The base year for this target is 2023. The target has been
incorporated into the Investment Policy which is approved by the Investment Committee and the
Board, and is reviewed annually as part of the ESG Strategy annual review. In 2024 FBD was in
compliance with the Investment Policy as outlined above.
Carbon Intensity
The carbon intensity metric expresses the carbon emissions of each company in relation to their
revenue, weighted according to the respective share of a security in FBD's corporate bond portfolio. As
part of FBD’s policy to integrate ESG factors into our investment portfolio, a 60% target reduction in
the carbon intensity of the corporate bond portfolio has been set over the 9-year period from 1
January 2021 to 31 December 2029. The baseline carbon intensity used is 258 tonnes CO2/m$USD
revenue as at 1 January 2021. The target was set by the Investment Committee in consultation with
the investment managers based on the maturity profile of the bonds and the need to maintain
adequate diversification of exposures within the portfolio. No prescribed methodology was used and it
is not directly linked to scientific evidence. The target has been incorporated into the Investment
Policy which is approved by the Investment Committee and the Board, and is reviewed annually as
part of the ESG Strategy annual review. The reduction is to be achieved as follows:
Year
2021
2022
2023
2024
2025
2026
2027
2028
2029
Reduction target3
20 %
25 %
30 %
35 %
40 %
45 %
50%
55 %
60 %
FBD has written this target into the portfolio guidelines with its investment manager. It monitors the
metrics and reports progress against the target on a quarterly basis to the Investment Committee and
Board. FBD has exceeded its targets for each year so far and the total reduction versus the baseline
stands at 74% as at 31 December 2024.
ESG rating limits
FBD's corporate bond manager has developed their own proprietary ESG scoring system, on a scale of
A-F (A being the best in class and F being the ESG laggards) which takes into account the current ESG
profile and steps companies are taking to improve their ratings. As part of FBD's policy of reducing the
climate impact of our portfolios, we have used this methodology to create the following limits4:
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
134
1 These exclusions do not apply to the Emerging Market Debt Funds and the Private Markets Fund.
2 High polluters (fixed income) – this limit applies to new purchases as of 01/01/2023. At 31/12/2024 FBD held c. €3.5m of corporate bonds in breach of this exclusion which have been sold as of the reporting date.
3 The targets for each year are the targeted reduction from the base year.
4 In recognition of the limitations and evolution of ESG rating methodologies, the Investment Committee may provide a waiver in the event of a breach subject to the bond holding an equivalent within tolerance rating with one of the main ESG
rating agencies. This waiver has not been applied during 2024.
ESG Rating
• 0% allocation to securities rated F
• 5% maximum allocation to securities rated E
• 20% allocation to securities rated D
This target was set by the Investment Committee in consultation with the investment managers and is
not directly linked to scientific evidence. The base year for this target is 2021. The target was
approved by the Investment Committee and the Board, and is reviewed annually as part of the ESG
Strategy annual review. In 2024 FBD continued to comply with the above limits.
GHG emission reduction targets
FBD does not currently have GHG emission reduction targets in place, however emission reduction
targets would be considered as part of the development of a transition plan. The creation of a
Transition Plan will remain under review in 2025.
Energy Consumption and Mix
2024
Fossil Sources
Total fossil energy consumption (MWh)
323
Share of fossil sources in total energy consumption (%)
13 %
Nuclear Sources
Consumption from nuclear sources (MWh)
-
Share of consumption from nuclear sources in total energy consumption (%)
0 %
Renewable Sources
Total renewable energy consumption (MWh)
2,177
Fuel consumption for renewable sources, including biomass (also
comprising industrial and municipal waste of biologic origin, biogas,
renewable hydrogen, etc.) (MWh)
-
Consumption of purchased or acquired electricity, heat,
steam, and cooling from renewable sources (MWh)
2,177
The consumption of self-generated non-fuel renewable energy (MWh)
-
Share of renewable sources in total energy consumption (%)
87 %
Total energy consumption (MWh)
2,500
100 %
Fossil Sources
Fossil sources consist of all energy from natural gas, liquified petroleum gas (LPG), heating oil and
hydrocarbon oil. Total MegaWatt hour (MWh) for natural gas is taken directly from our invoices, while
for LPG, heating oil and hydrocarbon oils, SEAI conversion factors are used to convert the litres of fuel
consumed to MWh.
Nuclear Sources
FBD does not consume any energy from nuclear sources.
Renewable Sources
FBD's purchased electricity consists of renewable energy as all electricity purchased by FBD is
certified as 100% renewable.
Renewable and non-renewable energy production
FBD does not produce any energy.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
135
High climate impact sectors
FBD does not have any operations in high climate impact sectors and has therefore omitted all metrics
required by entities with operations in these sectors.
Gross Scopes 1, 2, 3 and Total GHG emissions
2024
Scope 1 GHG emissions1
Gross Scope 1 GHG emissions (tCO2eq)
66
Scope 2 GHG emissions2
Gross location-based Scope 2 GHG emissions (tCO2eq)
489
Gross market-based Scope 2 GHG emissions (tCO2eq)
-
Significant scope 3 GHG emissions3
Total Gross indirect (Scope 3) GHG emissions (tCO2eq)
37,020
1 Purchased goods and services (tCO2eq)
4,858
2 Capital goods (tCO2eq)
714
3 Fuel and energy-related Activities (not included in Scope 1 or Scope 2) (tCO2eq)
151
4 Upstream transportation and distribution (tCO2eq)
-
5 Waste generated in operations (tCO2eq)
14
6 Business travelling (tCO2eq)
417
7 Employee commuting (tCO2eq)
806
8 Upstream leased assets (tCO2eq)
-
9 Downstream transportation (tCO2eq)
-
10 Processing of sold products (tCO2eq)
-
11 Use of sold products (tCO2eq)
-
12 End-of-life treatment of sold products (tCO2eq)
-
13 Downstream leased assets (tCO2eq)
147
14 Franchises (tCO2eq)
-
15 Investments (tCO2eq)
29,913
Total GHG emissions (tCO2eq)
37,575
Total GHG emissions (location-based) (tCO2eq)
37,575
Total GHG emissions (market-based) (tCO2eq)
37,086
1: Scope 1 emissions
There were no biogenic scope 1 emissions in 2024.
2: Scope 2 emissions
Scope 2 market-based emissions continue to be zero in line with 2023 as FBD only purchase energy
from renewable sources. FBD obtains Guarantees of Origin ("GOs") directly from our energy provider
and 100% of these are bundled. There were no biogenic emissions included in scope 2 in 2024.
3: Scope 3 emissions
1.57% of scope 3 emissions were calculated using primary data. Primary data consists of water
metering, waste bills and travel mileage provided by FBD's employees. There were no biogenic scope 3
emissions in 2024.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
136
GHG intensity based on net revenue
GHG intensity per net revenue
2024
Total GHG emissions (location-based) per net revenue (tCO2eq/€'000)
0.09
Total GHG emissions (market-based) per net revenue (tCO2eq/€'000)
0.09
2024
€'000
Insurance Revenue (per financial statements)
441,004
Revenue from contracts with customers (per financial statements)
3,667
Net revenue used to calculate GHG intensity
444,671
GHG Intensity
FBD's GHG intensity is calculated by dividing total emissions (location-based and market-based) by
total net revenue. Total net revenue is calculated by adding Insurance revenue and Revenue from
contracts with customers. See the Consolidated income Statement on page 198.
Non-Financial Accounting Policies
Direct GHG emissions (scope 1)
In line with the GHG protocol, FBD defines Scope 1 emissions as GHG emissions from sources they
own or control as Scope 1. Direct GHG emissions are principally the result of the consumption of the
following by the Group: LPG, natural gas, heating oil and hydrocarbon oil. Total activity data for FBD is
summed up by type of fuel and multiplied by an emission factor in order to calculate CO2e emissions.
FBD uses UK Government data (from the Department for Energy Security and Net Zero, and the
Department for Environment, Food and Rural Affairs or DEFRA) emission factors for CO2 equivalent.
Indirect GHG emissions (scope 2)
FBD defines Scope 2 as an indirect emission category that includes GHG emissions from the
generation of purchased or acquired electricity, steam, heat, or cooling consumed by FBD (in line with
the GHG Protocol). Calculating Scope 2 emissions requires a method of determining the emissions
associated with electricity consumption. FBD calculates Location Based Emissions from all consumed
electricity based on electricity usage invoices from energy suppliers. The total Kilowatt hours (kWh)
consumed is taken for the suppliers and multiplied by the emission factor for the overall Irish power
gird. Location based emission factors are sourced from the Commission for Regulation of Utilities.
Indirect GHG emissions (scope 3)
FBD defines Scope 3 as all other Indirect GHG emissions (not included in Scope 2) that occur in the
value chain of FBD Holdings plc. Scope 3 is broken down into upstream emissions that occur in the
supply chain (for example, from production or extraction of purchased materials and downstream
emissions that occur because of the use of FBD’s products or services). The GHG) Protocol Corporate
Value Chain (Scope 3) Accounting and Reporting Standard categorises Scope 3 emissions into 15
categories. FBD has assessed its Scope 3 emissions in line with the 15 Scope 3 emissions categories
outlined by the GHG Protocol. The minimum boundary in the GHG Protocol consists of; equity
investments, debt investments (with known use of proceeds), and Project finance.
Category 1 consists of:
•
Relevant operating expenditure multiplied by industry emission factors. Expenses excluded from
this calculation include employee costs, levies paid to regulatory bodies, depreciation and any
expenses for which the emissions have already been captured, such as light and heat in Scope 1
and Scope 2 and employee travel in Scope 3 category 6.
•
Investment expenses multiplied by an industry emission factor.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
137
•
Water emissions, calculated by applying the DEFRA emission factor to FBD's expenses relating to
water consumption.
Reinsurance premium paid is not included as it is classified as an optional category under the GHG
Protocol, while Claims costs are not included in C1 calculations as this encompasses a wide range of
activities that cannot be accurately represented by a single emission factor.
Category 2 consists of industry emission factors applied to FBD's relevant capital expenditure. The
majority of FBD's capital spend is comprised of facilities and IT expenditure. The remainder is excluded
as it relates to employee costs.
Category 3 consists of indirect cradle-to-gate emissions from fuel and electricity consumed multiplied
by relevant emission factors. The emission factors used are the DEFRA Well to tank (WTT) for natural
gas, kerosene and LPG and Transmission and distribution (T&D) for electricity.
Category 5 consists of an industry emissions factor applied to waste generated during the year. The
emission factors used are DEFRA Waste to landfill and DEFRA mixed recycling.
Category 6 consists of industry emissions factors applied to claimed mileage in 2024 for employees
who travel as part of their job. The emission factors used are the DEFRA business travel and WTT for
an average-sized car.
Category 7 consists of industry emission factors applied to employee travel to work. The average
emission factor for employee commuting is provided to FBD by an external third party sustainability
consultant, expressed in units of greenhouse gas (CO2, CH4, N2O, HFC, or CO2e) emitted per
kilometre. To calculate the appropriate emission factor for employee days, FBD along with our
sustainability consultant identified an appropriate percentage weighting of commuting methods for
employee and identified an appropriate Emission Factor for each commuting method. Information on
Commuting methods was taken from the Census 2022 Results which gave a breakdown of the types
of commuting citizens used. The emission factors used for each commuting method were as follow:
•
Bus: DEFRA business travel and WTT for an average local bus.
•
Rail: DEFRA business travel and WTT for light rail and tram.
•
Car: DEFRA business travel and WTT for an average-sized car.
•
Motorbike: DEFRA business travel and WTT for an average-sized motorbike.
•
Walking and cycling: Assumed to have an emission factor of zero.
Category 13 consists of the emissions estimated from FBD's investment property, based on the
electricity and gas consumption for buildings of a similar BER and floor space.
Category 15 consists of:
•
The emissions estimated from the Scope 1 and Scope 2 carbon footprint metrics provided by our
investment manager as at 31 December 2024 for our Corporate Bond Portfolio.
•
Scope 1 and Scope 2 emissions data provided by our investment manager as at 30 September 2024 for our Risk
Asset Portfolio. The portfolio remained materially unchanged between 30 September 2024 and the reporting
period. Sovereign bond exposure is not included in the analysis as the GHG Protocol does not provide guidance on
how to calculate these emissions.
•
Emissions calculations for investments include extrapolation where no direct data is available. Data
coverage is an industry wide issue which is expected to improve over time.
Categories 4, 8, 9, 10, 11, 12 and 14 are not material to FBD.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
138
GHG removals and GHG mitigation projects financed through carbon
credits
No GHG removals and storage activities are currently in place in FBD. FBD purchases carbon credits
annually from Vita that contribute to community boreholes and safe water in Ethiopia and Eritrea. All
carbon credits purchased by FBD are verified by the Gold Standard and are based on avoidance
projects. The carbon credits purchased in 2024 amount to €17,000 of the operating expenses
disclosed in Note 4 of the Financial Statements on page 230.
GHG mitigation projects financed through carbon credits
Carbon credits cancelled in the reporting year
2024
Total (tCO2eq)
1,446
Share from removal projects (%)
0
Share from reduction projects (%)
0
Recognised quality standard 1 (%)
100
Recognised quality standard 2 (%)
0
Recognised quality standard 3 (%)
0
Share from projects within the EU (%)
0
Share of carbon credits that qualify as corresponding adjustments (%)
0
Carbon credits planned to be cancelled in the future
Amount until
2025
Total (tCO2eq)
1,943
Internal Carbon Pricing
FBD do not have a carbon pricing scheme in place and there are no plans to create one in 2025.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
139
EU Taxonomy Regulation
Financial year 2024 is the second year that FBD is required to report on Taxonomy-Eligible and Aligned
for underwriting and investment activities.
EU Taxonomy (EUT) for Underwriting Activities
Taxonomy Eligibility
A Commission Notice issued by the European Commission in November 20241 mandates that insurers
provide a ‘premium split’, isolating premiums pertaining to the coverage of climate-related perils only
for the purpose of computing Taxonomy-Alignment. Further, where insurance undertakings are unable
to obtain the data on written premiums related to climate-related perils for a given insurance contract,
they should report those premiums as Taxonomy-Non-Eligible and enter a ’zero’ value when calculating
the numerator of the KPI.
For the financial year 2024, in contrast to the financial year 2023, we have conducted the premium
splits on Taxonomy-Eligible written premiums for a variety of products in the Solvency II lines of
business, including, other motor and fire and other damage to property insurance. We offer policies
that are based on a general protection approach, thus covering all risks, including (yet, not explicitly
referring to) climate-related perils. Equally, we offer lines of business where protection against certain
climate-related perils is explicitly included or excluded within policy terms and conditions. The extent
to which individual contracts include protection against climate-related perils depends on both
demand and customer risk exposure. We consider climate-related perils to be covered within a line of
business when such perils could potentially trigger claims i.e. products that explicitly price climate-
related perils or cover such perils in the policy terms and conditions.
The premium split has been conducted by an approximation of the share of past climate-related perils
caused claims using statistical methods on a product level. The resulting Taxonomy-Eligible share is
9.1%. Where the premiums for any products cannot be split into Solvency II lines of business, these
products are considered as Taxonomy-Non-Eligible.
Taxonomy Alignment
In line with requirements set out within the Delegated Acts, FBD’s Taxonomy-Eligible products have
been assessed against the specific Technical Screening Criteria (“TSC”) for underwriting activities,
including Substantial Contribution, Do No Significant Harm (DNSH) and Minimum Safeguards tests.
Substantial Contribution criteria consider a) leadership in modelling and pricing of climate risks, b)
product design, c) innovative insurance coverage solutions, d) data sharing and e) a high level of
service in post-disaster situation; whilst DNSH criteria preclude insurance of extraction, storage,
transport or manufacture of fossil fuels. Minimum Safeguards serve to protect social norms including
human rights and labour rights at both an entity and counterparty level. Our assessment found that
our Taxonomy-Eligible products partially meet TSC within the Delegated Acts and we are working to
fully meet criteria.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
140
1 Commission Notice on the interpretation and implementation of certain legal provisions of the Disclosures Delegated Act under Article 8 of the EU Taxonomy
Regulation on the reporting of Taxonomy-eligible and Taxonomy-aligned economic activities and assets (third Commission Notice)
Substantial contribution to climate change adaptation
DNSH (Do No Significant Harm)
Economic activities
Absolute
premiums,
year t
Proportion
of
premiums,
year t
Proportion
of
premiums,
year t-1
Climate
change
mitigation
Water
and
marine
resources
Circular
economy
Pollution
Biodiversity
and
ecosystems
Minimum
safeguards
1
2
3
4
5
6
7
8
9
10
€'000
%
%
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
A.1.
Non-life insurance and
reinsurance
underwriting
Taxonomy-aligned
activities
(environmentally
sustainable)
0
0%
0%
A.1.1.
Of which reinsured
0
0%
0%
A.1.2.
Of which stemming
from reinsurance
activity
0
0%
0%
A.1.2.1.
Of which reinsured
(retrocession)
0
0%
0%
A.2.
Non-life insurance and
reinsurance
underwriting
Taxonomy-eligible but
not environmentally
sustainable activities
(not Taxonomy-aligned
activities)
41,679
9.1%
0%*
B.
Non-life insurance and
reinsurance
underwriting
Taxonomy-non-eligible
activities
418,540
90.9%
100%*
Total (A.1 + A.2 +B)
460,219
100%
100 %
•
For year end 2023, FBD were unable to obtain data on written premium related to climate-related perils for a given insurance contract and therefore
reported "Explained Zero" in line with the draft Commission Notice issued by the European Commission in December 2023, this comparative
information is not assured.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
141
Investments EU Taxonomy (EUT) Overview
The proportion of exposures to Taxonomy-Eligible and Taxonomy-Aligned activities represent the
weighted average value of invested assets directed at funding, or associated with such activities,
relative to the value of total invested assets included for the purpose of the calculation of the KPI
(“Covered Assets”).
As a financial undertaking, FBD mostly relies on EU Taxonomy information published by the
counterparties that we are invested in. FBD only report Taxonomy Eligibility and Alignment figures for
entities that have reported the same.
Exposures to Taxonomy-Eligible activities include 5% of Covered Assets, representing exposures to
investee reported Taxonomy-Eligible KPIs and the investment property.
Exposure to Taxonomy-Aligned activities include 1.8% (2023: 1.1%) and 2.6% (2023: 2.4%) of Covered
Assets based on investee reported Turnover and CapEx KPIs respectively. The 2023 comparative
information is not assured.
While we have noted a marginal increase in reported Taxonomy-Aligned investments, overall reported
Taxonomy-Eligible and Taxonomy-Aligned investments remain low as a percentage of Covered Assets.
The weighted average value of all the investments of
insurance or reinsurance undertakings that are directed
at funding, or are associated with Taxonomy-aligned
economic activities relative to the value of total assets
covered by the KPI, with following weights for
investments in undertakings per below:
The weighted average value of all the investments of
insurance or reinsurance undertakings that are directed
at funding, or are associated with Taxonomy-aligned
economic activities, with following weights for
investments in undertakings per below:
Turnover-based: %
1.8 % Turnover-based:
16,503
Capital expenditures-based: %
2.6 % Capital expenditures-based:
23,338
The percentage of assets covered by the KPI relative to
total investments of insurance or reinsurance
undertakings (total AuM). Excluding investments in
sovereign entities.
The monetary value of assets covered by the KPI.
Excluding investments in sovereign entities.
Coverage ratio:%
77.6 % Coverage:
912,076
Additional, complementary disclosures: breakdown of denominator of the KPI
The percentage of derivatives relative to total assets
covered by the KPI.
The value in monetary amounts of derivatives.
0 %
-
The proportion of exposures to financial and non-
financial undertakings not subject to Articles 19a and
29a of Directive 2013/34/EU over total assets covered
by the KPI:
Value of exposures to financial and non-financial
undertakings not subject to Articles 19a and 29a of
Directive 2013/34/EU:
For non financial undertakings:
20.5 % For non financial undertakings:
187,418
For financial undertakings:
4.6 % For financial undertakings:
41,928
The proportion of exposures to financial and non-
financial undertakings from non-EU countries not
subject to Articles 19a and 29a of Directive 2013/34/
EU over total assets covered by the KPI:
Value of exposures to financial and non-financial
undertakings from non-EU countries not subject to
Articles 19a and 29a of Directive 2013/34/EU:
For non financial undertakings:
17.3 % For non financial undertakings:
158,118
For financial undertakings:
9.1 % For financial undertakings:
82,676
The proportion of exposures to financial and non-
financial undertakings subject to Articles 19a and 29a
of Directive 2013/34/EU over total assets covered by
the KPI:
Value of exposures to financial and non-financial
undertakings subject to Articles 19a and 29a of
Directive 2013/34/EU:
For non financial undertakings: %
12.4 % For non financial undertakings:
112,719
For financial undertakings: %
10.2 % For financial undertakings:
93,364
The proportion of the insurance or reinsurance undertaking’s investments that are directed at funding, or are associated with, Taxonomy-
aligned in relation to total investments
€'000
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
142
The proportion of exposures to other counterparties
and assets over total assets covered by the KPI:
Value of exposures to other counterparties and assets:
25.9 %
235,853
The proportion of the insurance or reinsurance
undertaking’s investments other than investments held
in respect of life insurance contracts where the
investment risk is borne by the policy holders, that are
directed at funding, or are associated with, Taxonomy-
aligned economic activities:
Value of insurance or reinsurance undertaking’s
investments other than investments held in respect of
life insurance contracts where the investment risk is
borne by the policy holders, that are directed at
funding, or are associated with, Taxonomy-aligned
economic activities :
0 %
-
The value of all the investments that are funding
economic activities that are not Taxonomy-eligible
relative to the value of total assets covered by the KPI:
1
Value of all the investments that are funding economic
activities that are not Taxonomy-eligible: 1
93.6 %
853,974
The value of all the investments that are funding
Taxonomy-eligible economic activities, but not
Taxonomy-aligned relative to the value of total assets
covered by the KPI: 2
Value of all the investments that are funding Taxonomy-
eligible economic activities, but not Taxonomy-aligned: 2
%
4.6 %
41,599
Additional, complementary disclosures: breakdown of numerator of the KPI
The proportion of Taxonomy-aligned exposures to
financial and non-financial undertakings subject to
Articles 19a and 29a of Directive 2013/34/EU over total
assets covered by the KPI:
Value of Taxonomy-aligned exposures to financial and
non-financial undertakings subject to Articles 19a and
29a of Directive 2013/34/EU:
For non financial undertakings:
For non financial undertakings:
Turnover-based: %
1.7 % Turnover-based:
15,060
Capital expenditures-based: %
2.4 % Capital expenditures-based: [monetary amount]
21,784
For financial undertakings:
For financial undertakings:
Turnover-based: %
0.2 % Turnover-based:
1,443
Capital expenditures-based: %
0.2 % Capital expenditures-based:
1,554
The proportion of the insurance or reinsurance
undertaking’s investments other than investments held
in respect of life insurance contracts where the
investment risk is borne by the policy holders, that are
directed at funding, or are associated with, Taxonomy-
aligned:
Value of insurance or reinsurance undertaking’s
investments other than investments held in respect of
life insurance contracts where the investment risk is
borne by the policy holders, that are directed at
funding, or are associated with, Taxonomy-aligned:
Turnover-based: %
0 % Turnover-based:
-
Capital expenditures-based: %
0 % Capital expenditures-based:
-
The proportion of Taxonomy-aligned exposures to other
counterparties and assets over total assets covered by
the KPI:
Value of Taxonomy-aligned exposures to other
counterparties and assets over total assets covered by
the KPI:
Turnover-based: %
0 % Turnover-based:
-
Capital expenditures-based: %
0 % Capital expenditures-based:
-
Breakdown of the numerator of the KPI per environmental objective
Taxonomy-aligned activities – provided ‘do-not-significant-harm’ (DNSH) and social safeguards positive assessment:3
(1)Climate change mitigation: Turnover %
1.8 % Transitional activities: A% (Turnover)
0.12 %
Enabling activities: B% (Turnover)
0.89 %
(1)Climate change mitigation: Capex %
2.6 % Transitional activities: A% (Capex)
0.22 %
Enabling activities: B% (CapEx)
1.25 %
(2)Climate change adaptation: Turnover %
0 % Enabling activities: B% (Turnover)
-
The proportion of the insurance or reinsurance undertaking’s investments that are directed at funding, or are associated with, Taxonomy-
aligned in relation to total investments
€'000
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
143
(2)Climate change adaptation: Capex %
0.02 % Enabling activities: B% (CapEx)
-
(3)The sustainable use and protection of water and
marine resources
0 % Enabling activities: B% (Turnover; CapEx)
-
(4)The transition to a circular economy
0 % Enabling activities: B% (Turnover; CapEx)
-
(5)Pollution prevention and control
0 % Enabling activities: B% (Turnover; CapEx)
-
(6)The protection and restoration of biodiversity and
ecosystems
0 % Enabling activities: B% (Turnover; CapEx)
-
The proportion of the insurance or reinsurance undertaking’s investments that are directed at funding, or are associated with, Taxonomy-
aligned in relation to total investments
€'000
Notes
1.
Numbers in table based on turnover. Numbers based on CAPEX: €843,986,000 and 92.5%.
2.
Numbers in table based on turnover. Numbers based on CAPEX: €44,752,000 and 4.9%.
3.
Environmental Objectives Turnover/Capex % do not equal the sum of the disaggregation
between Transitional/Enabling activities as underlying companies may have reported the total
amount but not the disaggregation.
Nuclear and fossil gas related activities
Nuclear energy related activities
The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of
innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel
cycle.
No
The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to
produce electricity or process heat, including for the purposes of district heating or industrial processes such as
hydrogen production, as well as their safety upgrades, using best available technologies.
No
The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce
electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen
production from nuclear energy, as well as their safety upgrades.
No
Fossil gas related activities
The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that
produce electricity using fossil gaseous fuels.
No
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool
and power generation facilities using fossil gaseous fuels.
No
The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation
facilities that produce heat/cool using fossil gaseous fuels
No
We have declared zero exposure in all sections. Data for these is not currently available as we rely on
underlying investee reporting and we will assess these based on their 2024 disclosures which will be
published from 2025.
Covered Assets
The Covered Assets correspond to all assets invested on the balance sheet (including cash), excluding
exposures to central governments, central banks and supranational issuers in accordance with Article
7(1) of the Commission Delegated Regulation (EU) 2021/2178. In 2024, the Covered Assets represent
78% of the total investments.
Sovereign, supranational and agency bonds
These assets include directly held bonds in the Government Bond portfolio and similar exposures held
in the Money Market Fund. These assets are not included in the calculation of the KPIs as noted in the
previous section.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
144
Cash
Cash is considered as part of Covered Assets however we have not determined these holdings as
Taxonomy-Eligible as they are not funding specific economic activities. The exposure to these assets is
included in ‘Value of exposures to other counterparties and assets’.
Corporate Bonds
These assets include directly held bonds in the Corporate Bond portfolio and similar exposures held in
the Money Market Fund. These assets are managed on behalf of FBD by an external investment
manager which collates publicly reported information from underlying counterparties. All FBD’s assets
which are classified as Taxonomy-Aligned are corporate bonds.
Risk Asset Funds
The funds are classified as non-Eligible because neither EUT KPIs or reliable look-through data is
available. Approximately 65% of the funds are classified as Article 8 Funds under SFDR however the
criteria for EU Taxonomy is more stringent. The exposure to these assets is included in ‘Value of
exposures to other counterparties and assets’.
Real Estate
The Group’s directly held investment property has been classified as Taxonomy-Eligible under activity
7.7 Acquisition and ownership of buildings within the climate change mitigation objective. It does not
currently meet the energy-efficiency TSC within the Delegated Acts and therefore is not considered
Taxonomy-Aligned.
Future Developments
The extension of scope of Taxonomy-Eligible activities to include certain nuclear and gas activities
under Commission Delegated Regulation (EU) 2021/2139 has been included and we have declared zero
exposure in all sections. Data for these is not currently available as we rely on underlying investee
reporting and we will assess these based on their 2024 disclosures which will be published from 2025.
Zero exposure has also been declared on the remaining four environmental objectives under
Commission Delegated Regulation (EU) 2023/2486. Data for these is not currently available as we rely
on underlying investee reporting and we will assess these based on their 2024 disclosures which will
be published from 2025.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
145
Social
Considers how a company impacts people and includes issues such as working conditions, diversity,
equity and inclusion (DEI), charitable giving, human rights infringements, modern slavery, sourcing of
goods and services, product liabilities, privacy concerns, consumer protection and data security. Our
material impacts identified as part of our DMA pertain to all of our employees across our branch
network, head office and support centre. Characteristics of our employees are detailed on page 156.
European Sustainability Reporting
Standard (ESRS) S1 - Own Workforce
FBD has a range of people policies in place to ensure full compliance with legislation and with our
commitment to providing a safe and supportive working environment for our employees. Fundamental
to these policies and the embedded culture, is a regard for the individual, their rights and the mutual
benefit of fostering our employees' potential and supporting their career development. We expect all
our employees to comply with our people policies and procedures.
These policies apply to all employees and are communicated to all employees joining FBD as part of
the on-boarding process. They provide information, guidelines and rules where appropriate in relation
to every stage of employment including recruitment and selection; equality and diversity; probation;
learning and development; all types of leave; benefits; remuneration; disciplinary and grievance.
Refresher modules are provided via e-learning for certain policies to refresh the knowledge of
employees on an ongoing basis. Further information on our mandatory compliance training is available
within section G1 on business conduct.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
146
S1 OWN WORKFORCE
Training and Skills Development
Employee satisfaction through training
Increased productivity by attracting top talent
Gender Equality and Equal Pay for Work of Equal Value
Gender Balance for employees
Failure to uphold gender equality practices
Diversity
Diversity and inclusion for employees
Health and Safety
Upholding adequate health and safety practices
Work Life Balance
Work life balance for employees
Secure Employment
Job security for employees
Increased productivity by offering good working
conditions
Working Time
Sufficient working time for employees
Reduced employee turnover
IRO legend
Positive Impact
Negative Impact
Opportunity
Risk
IRO listing on page 113-118
Policies and procedures are reviewed at least annually to ensure they accurately reflect employee
entitlements and continue to support FBD’s business objectives while remaining fit for purpose and
compliant. Any updates are notified to employees.
Some of our key policies, owners and approvers are listed below. Policies specifically related to
corporate culture have been outlined within section G1 on business conduct.
Policy
Objective
Approved By
Policy Owner
Equal Opportunities
Diversity and
Inclusion Policy
To ensure that FBD is a place where everyone, irrespective of
their age, gender, ethnicity, culture, religion, language, sexual
orientation, ability, disability and social circumstances, feels a
sense of belonging, is respected and valued, and treated fairly.
Board, at least
annually
Group Chief Human
Resources Officer
Safety Statement
Describes how the organisation will go about ensuring the safety,
health and welfare of all persons affected by FBDs operations and
it also identifies the resources that will be made available to
achieve this.
Group Chief Human
Resources Officer, at
least annually
FBD Safety Manager
Professional
Development &
Education Support
Policy
Outlines FBD’s approach to funding professional development and
education support.
Group Chief Human
Resources Officer, at
least annually
Head of Learning &
Development
Data Protection
Policy
To set out the organizational structures, policies & procedures
and technical measures which FBD has implemented to ensure
compliance with the Data Protection Acts.
Board, at least
annually
FBD Data Protection
Officer
Information Security
Policy
To define specific requirements to help achieve the
confidentiality, integrity and availability of FBD's Information
Assets.
Security Steering
Group Chief
Technology &
Operations Officer
Engaging with our Own Workforce
At FBD, we gauge the pulse of our workforce through our annual employee listening survey. During
2024 the survey was managed by FBD using software provided by Willis Towers Watson, an
independent consulting firm. This allows us to benchmark FBD’s responses against the Ireland norms.
We aim to harness the power of the employee voice to create an improved employee experience.
Listening Survey Scores Vs Target
84%
69%
66%
73%
69%
72%
Ireland norm*
2024
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
75%
80%
85%
Work Life Balance Sentiment Score
Wellbeing score
Career Development Support Score
*Benchmarked against Ireland norm in the myVoice survey
FBD operates a structure of on-going engagement with employees through individual One to One
meetings between employees and people leaders, team meetings, business unit town halls, and
company town halls.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
147
In accordance with the requirements of the Safety, Health and Welfare at Work Act 2005 and
associated Regulations, the Group operates and encourages a policy of consultation and participation
with all employees. FBD recognises the positive role of the safety representative and the importance
of good communication with all employees, on an on-going basis, regarding all aspects of safety,
health and welfare.
In FBD we have regular engagement with our Employee Representative bodies including the trade
union Unite and the Field Staff Association who are an internal FBD representative body. We meet and
work with both representative bodies for collective bargaining reasons as required and more regularly
for the sharing of information and discussing matters that are important to our member colleagues.
We will share our first set of Sustainability Statement for the reporting period 2024 with workers
representatives when published.
An independent non-executive Director is designated as responsible for workforce engagement. They
will act as a bridge between the workforce and the Company’s Board of Directors. The purpose of this
position is to strengthen the voice of employees at the board level and ensure their perspectives and
interests are considered in the strategic decisions of the company. Our Group Chief Human Resources
officer is responsible for overseeing engagement with our own workforce.
Secure Employment, Working-time and Human and Labour rights
Our approach and policies
FBD recognise human rights as the foundational principles for protecting people's dignity and ensuring
freedom and respect in our own operations, in the companies we work with, and in the communities
we are part of.
We respect internationally recognised human rights understood, at a minimum, as those expressed in
the International Bill of Human Rights and the principles concerning fundamental rights set out in the
International Labour Organisation’s Declaration on Fundamental Principles and Rights at Work.
FBD aim to ensure that we are not, directly or indirectly, in any way complicit in human rights abuses
and we are transparent in reporting our human rights performance.
Our human rights commitments relative to our own workforce are outlined in our Code of Conduct
Policy owned by the Group Chief Human Resources Officer and reviewed at least annually by the
Board. Our Code of Conduct Policy has been updated to explicitly highlight our dedication to
honouring internationally recognised human rights and our commitment to ensuring freedom of
association, the right to collective bargaining, elimination of forced or compulsory labour, effective
abolition of child labour, and elimination of discrimination in employment and occupation, among other
critical issues.
No significant risk of incidents of forced, compulsory or child labour were identified given the group is
a financial services provider operating only out of Ireland where the duty to respect human and labour
rights are reflected in domestic law which we abide by.
We protect and ensure the responsible use of data and the right to privacy. In accordance with the
General Data Protection Regulation (GDPR), FBD has a designated Data Protection Officer (DPO) who
plays an integral role in safeguarding the personal information of our workforce. Our Employee Data
Protection notice outlines to employees how FBD processes and protects individuals’ personal data. A
record of all processing activities is reviewed annually by the DPO and periodic privacy impact and
maturity assessments are conducted. Confidentiality and integrity and availability of employee data is
protected through a range of business and technical controls including security awareness training for
all employees, specialist/focused security training for specific groups, malware protection, device and
user authentication, appropriate Business Continuity Policy, IT Disaster Recovery plans as well as
capacity and configuration management.
Actions
•
We are dedicated to safeguarding the labour conditions of all our employees through social
protection. This encompasses an ongoing commitment of support for circumstances such as
sickness, employment injury, parental leave, and retirement.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
148
•
Retirement benefits are incorporated in our overall remuneration package, and all employees over
25 are eligible to enrol in the FBD pension scheme which has an employer contribution element. For
details of the plans in operation throughout the reporting period, see note 17 within the financial
statements.
•
FBD offer various other paid and/or unpaid family-related leaves such as annual leave, adoptive
leave, carer’s leave, compassionate leave, parents leave, parental leave, maternity leave and
paternity leave. Commitments are ongoing through established policies shared with all employees.
•
In 2024 we have launched an internal policy on Fertility Treatment, offering, where feasible, up to a
total of five additional paid leave days and/or increased flexibility on remote working and working
hours to accommodate treatment. The policy is inclusive of all employees, whether the employee is
undergoing treatment or supporting a partner who is undergoing treatment. FBD is mindful that
this can be a physically and emotionally demanding time where help and support can make the
difference. Our Fertility Treatment Policy is owned by the Head of HR Operations and reviewed at
least annually. Any material amendments made to this policy require approval by the Group Chief
Human Resources Officer.
•
FBD employees are active in supporting local and national charity-based organisations. In 2024 our
chosen charity was Down Syndrome Ireland and throughout the year we held various fundraising
events. For 2025, our chosen charity is Irish Cancer society.
Metrics
No cases of human rights incidents (e.g., forced labour, human trafficking, or child labour) were
identified during 2024.
We ensure employees’ working hours and pay rates comply with national legislation and industry
standards. All our employees are paid an adequate wage, in line with applicable benchmarks. None of
our employees are on a non-guaranteed hour contract.
Targets have not been set in relation to IROs under the sub-sub topics of secure employment and
working time as no measurable outcome-oriented target was identified.
Coverage of collective bargaining agreements and social dialogue for Group employees during the
reporting period:
Collective Bargaining
Social Dialogue
Coverage Rate
Employees – EEA
Employees –Non EEA
Workplace
representation (EEA only)
0-19%
-
-
-
20-39%
-
-
-
40-59%
-
-
-
60-79%
-
-
-
80-100%
Ireland
—
Ireland
Employees covered by collective bargaining agreements are those individuals to whom FBD is obliged
to apply the agreement rather than the percentage of unionised employees.
Health, Safety and Work-life Balance
Our approach and policies
FBD is committed to providing a safe place of work and conducting all aspects of our business activities in such a
manner that we achieve the best possible standards of Health, Safety and Welfare for employees and other persons
who may enter the workplace. It is the policy of FBD to comply with all National Safety, Health and Welfare
Legislation, Regulations and Standards including the Fire Services Act 1981 and 2003 and the Safety Health and
Welfare at Work Act 2005.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
149
The FBD Safety Statement is the cornerstone of our safety management system. The safety statement clearly outlines
FBD’s commitment to health and safety, identifies persons with safety responsibilities, outlines the Group safety
policies and includes risk assessments.
FBD recognises that protecting employees’ health and wellbeing is part of maintaining an effective and
vibrant organisation. It is also acknowledged that wellbeing is a matter of balancing many factors
which change over working life and life cycle.
Actions
•
FBD has an active and comprehensive Health and Wellbeing strategy in place for all employees. We
have an annualised calendar of programmes which include talks by specialists in Mental Health,
Menopause, Nutrition and Emotional Wellbeing, supported by information campaigns on topics
such as Suicide, Self-Care, Isolation, Alcoholism, Relaxation and Financial Wellbeing.
•
Our Mental Health First Aid Training is designed to enhance understanding of mental health and
mental health problems that may arise in the workplace. Participants learn the signs and symptoms
of mental health problems and what sort of help has been shown by research to be effective. They
learn a framework for communication, how to offer and provide initial help, and how to guide a
person towards appropriate treatments and other supportive help. We typically aim to have a
representative from each function attend the training. The programme has been in place since
2022 and we have 45 certified mental health first aiders now in FBD, across our branch network,
head office and support centre.
•
To help employees manage personally challenging periods, FBD has partnered with an external
provider to offer an Employee Assistance Programme designed specifically to support an employee
in mastering the demand of difficult times involving significant stress or change, at home or at
work. The service was in place throughout the reporting period and is available to provide support
in areas such as illness, bereavement, alcohol or drug abuse, financial/debt issues, legal matters,
pressure/stress, retirement and relationship or family crisis. All contacts by telephone or in person
are entirely confidential. The service can also be accessed by an employee’s partner/spouse and/or
children over 16 living at home.
•
We have an ongoing duty of care to all our employees to ensure they are both fit for work and that
any recommended supports needed to facilitate a successful return to work are put in place. The
occupational health programme can also support those that are not currently absent from work but
may require extra support due to a medical condition.
•
Additionally, as part of our continuing commitment to promote employee wellbeing, FBD provides a
bi-annual Health Screening Programme and yearly access to anti-flu vaccinations to all employees.
•
Continuing preventative and mitigating efforts to ensure FBD is a safe place of work for all
employees, include detailed risk assessments across our office network, emergency drills, record of
and prompt investigation of accidents, maintenance programmes for all key plant and equipment,
as well as safety training.
Metrics
Health and safety Incidents during the reporting period:
2024
Total recordable Incidents
7
Total recordable Incident rate
0 %
Fatalities
0
Total recordable incidents is the total number of workplace accidents recorded on the Health and
Safety Management System including any fatalities. Our Health and Safety Management systems
covers 100% of our employees.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
150
A work-related accident is defined as an unexpected and unplanned event or incident that occurs in
the course of work, resulting in injury or harm to an employee. This includes physical injuries, ill health,
or fatalities caused directly by tasks performed as part of the employee’s responsibilities.
The total recordable incident rate is calculated as the number of injuries per one million hours worked.
Fatalities are the number of employees who lost their lives as a result of a work-related incident.
Diversity, Gender Equality and Equal Pay for Work of Equal Value
Our approach and policies
FBD is committed to protecting the dignity of people at work, and to providing all of our employees
with an environment free from bullying, harassment, sexual harassment or intimidation. One of our key
values is to support and respect our colleagues as individuals and as team members.
The purpose of our Equal Opportunities, Diversity and Inclusion Policy is to ensure that FBD is a place
where everyone, irrespective of their age, gender, ethnicity, culture, religion, language, sexual
orientation, ability, disability and social circumstances, feels a sense of belonging, is respected and
valued, and treated fairly.
At FBD, we believe that an inclusive, diverse and equitable workforce is critical for the success of our
organisation.
We are committed to creating an inclusive environment where everyone can bring their true selves to
work. As the largest Irish-owned insurer, it is our intention that our employees and customers are
represented through inclusive practices and diversity of thought.
Female Representation Progress:
Gender Diversity Vs Target
40%
40%
40%
35%
55%
30%
30%
35%
30%
50%
45.5%
30.0%
44.4%
47.4%
45.9%
Headline Target
Interim Target
2024
0%
10%
20%
30%
40%
50%
60%
Board
C-Suite
Senior Management
Middle Management
Junior Management
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
151
31/12/2024
Interim Targets
Headline Targets
% of Females % of Females Target date
% of Females Target date
Board
45.5 %
30% 31/12/2022
40% - 31/12/2025
Executive / C-Suite - top management
30.0 %
30% 30/06/2022
40% - 31/12/2026
Senior Management
44.4 %
35% 31/12/2025
40% - 31/12/2026
Middle Management
47.4 %
30% 31/12/2024
35% - 31/12/2026
Junior Management
45.9 %
50% 31/12/2024
55% - 31/12/2026
For further details on the diversity of FBD at a Board level please refer to the Nomination and
Governance report on pages 67 to 73.
Actions
Gender Equality
On the 15th of December 2024, FBD produced our third gender pay gap report. Like many peers within
the insurance sector, FBD has a gender pay gap. Our gender pay gap’s primary driver continues to be
female under representation in senior roles and revenue generating roles within our organisation. In
addressing this gap we have identified several sustainable and measurable goals to address gender
representation at senior levels. We know that we are on a journey and are determined to reduce our
gender pay gap and to lead programmes and initiatives to increase female representation across all
areas and levels of FBD. Not all the initiatives will have an immediate impact on our gender pay gap,
but they will help us achieve better gender balance across all levels of the organisation.
•
FBD are a committed signatory of the Women in Finance Charter since 2022. Led by industry and
supported by the Government of Ireland, the Women in Finance Charter underpins the financial
services industry’s ambition to see increased participation of women at all levels, including junior,
middle and senior management, leadership and Board roles within financial services organisations
based in Ireland. By signing the Charter, we are confirming our commitment to advancing women
through various management and board levels, creating stretch targets and delivering a greater
gender balance in the organisation.
•
Our CEO and Leadership team remain accountable for driving these visible changes in the
organisation. They are responsible for measuring, monitoring and publicly communicating on an
annual basis our progress against the targets set, so that transparency and accountability on
progress in driving change is evident.
Industry Employee Diversity & Inclusion Allyship
•
FBD are a founding partner of VOiCE which launched in 2022. VOiCE (Valuing openness, inclusivity,
culture and equity) is an industry- led collaboration to create sectoral D&I benchmarking and we
are a founding partner within the insurance industry. We are part of a collective voice and a
programme that will hold organisations to account for promoting inclusivity and positive working
cultures. The goal is to provide a blueprint for understanding what good culture and D&I practices
in the workplace look like to provide the foundation for developing inclusive cultures.
Progress to date Irish Centre for Diversity Accreditation
•
During 2024 FBD were honoured to be awarded the Investors in Diversity Gold accreditation from
the Irish Centre for Diversity, a target we had set for ourselves and will now look to maintain. FBD
is one of only 24 organisations in Ireland to be accredited with Investors in Diversity Gold. It
recognises our people, culture and how DEI is underpinned in everything we set out to do. We are
continuing to engage with other recipients of this accreditation to identify further opportunities to
build and maintain an inclusive organisation.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
152
•
In 2024, FBD’s D&I programme owner was shortlisted as a Diversity and Inclusion Leader in the
Irish Centre for Diversity Annual National D&I awards.
In 2024, we asked our employees for feedback on our culture through our annual employee listening
survey.
Our employees expressed a positive sentiment 7% above the Ireland norm in the myVoice survey for
the statements “I can be myself at this organisation without worrying about how I will be accepted”
and a 5% positive sentiment above the Ireland norm in the myVoice survey for the statement “This
organisation provides a working environment free of discrimination and harassment”.
Similarly, FBD saw positive sentiment 6% above the Ireland norm in the myVoice survey for the
statement "Everyone is treated with respect here, regardless of their job."
Although the results were positive overall, we acknowledge that we are still on a journey and will be
using 2024’s survey as another baseline by which we can measure our development going forward.
Metrics
Gender Diversity as at 31/12/2024:
Employees
FTE
Male
399
Female
617
Other*
1
Not Reported
9
Total
1,026
*Gender as defined by the employee.
Gender diversity by contract type as at 31/12/2024:
Female
Male Other* Not Disclosed Total
Number of employees (FTE)
617
399
1
9
1,026
Permanent employees (FTE)
592
385
1
7
985
Temporary employees (FTE)
25
14
-
2
41
Non-guaranteed hours employees (FTE)
-
-
-
-
-
Gender diversity across management as at 31/12/2024:
Female
Male Other* Not Disclosed
Total
Board (headcount)
5
6
-
-
11
Executive/C-suite - top management (FTE)
3
7
-
-
10
Senior Management (FTE)
20
23
1
1
45
Middle Management (FTE)
28
31
-
-
59
Junior Management (FTE)
39
46
-
-
85
The number of employees is determined as the number of employees converted to full-time
equivalents (FTE). FTE measures the equivalence to full-time and is that recorded in the Contract of
Employment (example: if an employee is working 2 days a week, the FTE will be recorded as 0.4).
Compensation Metrics:
2024
Gender Pay Gap
29 %
Annual Total remuneration ratio
30.6
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
153
The gender pay gap looks at the difference between the average pay of all men and all women across
the whole business, regardless of job type or how senior they might be. It is calculated as the
difference between the average pay of female employees and male employees, expressed as a
percentage of the average pay of male employees. ‘Pay’ means gross annual pay and the
corresponding gross hourly pay. The Gender Pay Gap reported under CSRD includes LTIP share awards
granted and pension contributions which are not included in the Gender Pay Gap under Irish
legislation reported in December 2024.
The annual total remuneration ratio is the ratio between the remuneration of the highest paid
individual in the Group and the median remuneration for all employees.
'Pay' incorporates base salary, all forms of variable remuneration, benefits in kind or cash benefits. This
includes, health insurance benefits, car allowances, pension contributions, granted share awards based
on the number of shares granted and the share price at grant date, and any other applicable benefits
in kind or cash benefits. The cost of providing insurance cover for death in service and Permanent
Health Insurance benefits was estimated to be 1.5% of base pay for all individuals and is included in
the pay calculation. Deferred bonus elements are excluded from the calculation.
The calculation is based on all employees in the Group on the 15th June which is consistent with the
period used in the Gender pay Gap Information Act. The snapshot period used is the twelve months
preceding the 15th June, representing the mid-point of the reporting period. An analysis has been
carried out to validate the information in the snapshot period is consistent with the year end reporting
date.
Purchasing power adjustments are not relevant as all employees are based in Ireland.
Age Diversity as at 31/12/2024:
Total
under 30 years old
20.6 %
30-50 years old
58.7 %
over 50 years old
20.7 %
Total
100.0 %
Age diversity has been calculated using FTE and excludes non-employees such as the non-executive
Board of Directors. Age of employees is determined based on the data of birth recorded on the HR
system.
Training and Skills Development
Our approach and policies
FBD’s Learning and Development mission is to enable the implementation and delivery of FBD’s
strategy through the development of curious, innovative, resilient and engaged people.
The success of FBD in delivering the right outcomes for our shareholders, wider society and regulators
is directly related to the capabilities of our employees and our ability to achieve standards of
excellence through the services we provide to our customers. In order to achieve and sustain these
standards we are committed to providing employees at all levels with appropriate training,
development and education and we have a number of programmes in place to support this.
Our clearly defined behaviour and technical competency framework provides the foundation to make
many of the things we do simpler and more consistent; for example, how we define and articulate
roles, how we recruit the right people, how we plan development with our employees and how we
provide career options and pathways.
Actions
•
We provide all our employees with ongoing access to a targeted development mix which includes
professional qualification attainment, technical training, further third level education, exposure to
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
154
projects, secondments, mentoring programmes, professional coaching, psychological safety
campaigns and line manager support.
•
Research shows time and time again that it is people leaders who are key to unlocking employee
engagement. The best people leaders know how to create the right environment to enable their
team to deliver a standout performance. Our Mindful Leadership Programme continues to be the
bedrock of our leadership capability development empowering our leaders, at all levels, to develop,
support and enable their teams to deliver. The programme is run annually and aimed at new and
upcoming people leaders.
•
FBD also run induction training for new people leaders and have a dedicated people leader hub
providing tools and supports to enable effective leadership.
•
We offer specific training aimed at insurance and specialist competencies as required and we have
career mapped all roles to support rotation and career progression.
•
We conduct ongoing due diligence with respect to the Central Bank of Ireland’s Fitness & Probity
Regime, and Minimum Competency Code and training support in relation to the CBI Individual
Accountability Framework obligations.
We will continue to keep capability building as a key enabler of strategy delivery into 2025 with a
focus on data-led training.
Remediation and Channels to Raise Concern
Speak Up / Whistleblowing
Every organisation faces the inherent risk that issues will arise either accidentally or otherwise. It is
vital that a channel whereby concerns can be raised is in place so we can address any possible issues
as early as practicable. Our process is outlined in our Speak-Up Policy. Further information on our
Speak-Up policy and how we protect whistleblowers against retaliation, is outlined within section G1
on business conduct.
Grievance & Dignity at Work Process
Employee grievances as well as concerns or challenges about interpersonal conflicts including
employees who feel bullied or harassed at work are addressed through appropriate dignity at work,
recruitment and selection, disciplinary and grievance policies and procedures. All employees can take
action with full support from an internal support person or progress a formal complaint. Complaints are
treated seriously and dealt with in a confidential, expeditious manner in as far as reasonably
practicable. Employees who make complaints will not be victimised for doing so. Victimisation as well
as false accusations, if proven, may result in disciplinary action.
Reports During the Period
Five incidents were raised through our remediation channels above during the reporting period.
During 2024 there were no work-related incidents of discrimination reported to Human Resources or
via the whistleblower system on the grounds of gender, racial or ethnic origin, nationality, religion or
belief, disability, age, sexual orientation, or other relevant forms of discrimination involving internal
and/or external stakeholders across operations in the reporting period. This includes incidents of
harassment as a specific form of discrimination.
No fines, penalties, or compensation for damages arose as a result of the incidents and complaints
disclosed above.
Effectiveness and Awareness
Any incidents raised are tracked and monitored through designated channels with appropriate polices
and procedures in place in support of this. Polices are easily accessible online and mandatory training
is rolled out to all employees with regard to whistle-blower reporting and our code of conduct - see
page 167. We gain valuable insights through our listening survey and from our wider engagement with
our workforce on the effectiveness of these channels.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
155
Characteristics of Employees
Employees by country as at 31/12/2024::
Number of
Employees
FTE
Ireland
1,026
All of the Group’s operations are located in Ireland.
Employees by contract type as at 31/12/2024:
Ireland
Total
Number of employees (FTE)
1,026
1,026
Permanent employees (FTE)
985
985
Temporary employees (FTE)
41
41
Non-guaranteed hours employees (FTE)
-
-
Employee Turnover during the reporting period:
2024
Leavers during the reporting period (FTE)
152
Average number of employees during the reporting period (FTE)
1,016
Total employee turnover rate
15.0 %
The employee turnover rate is calculated as the number of employees who left during the reporting
period whether voluntarily or due to dismissal, retirement, or death in service relative to the average
number of employees during the reporting period.
Note 9 of the financial statements presents the average number of people employed during the period
whereby the number of employees is not converted to FTE.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
156
European Sustainability Reporting
Standard (ESRS) S4 - Consumers and End
Users
FBD was established in the 1960s by farmers for farmers. We have built on our roots in agriculture to
become a leading insurer in Ireland serving the needs of our consumers and end users being Farmer,
Business and Retail customers. We pride ourselves on providing excellent customer service and putting
the customer at the heart of what we do.
Access to (Quality) Information
Engaging with our Consumers and End Users
FBD appreciate that only by having a complete
understanding of our consumers we can deliver a
proposition they value.
During 2024 FBD won the CSR/Community/Green
Loyalty Programme of the year at the prestigious Irish
Loyalty & CX Awards. The Irish Loyalty & CX Awards
recognises excellence, innovation and achievement in
loyalty and customer experience for Irish companies
who are building lasting and profitable relationships
with customers within Ireland across every sector. This
award is an acknowledgement of the level of our
support across several community initiatives including
our local and national sponsorship portfolio.
User Research
FBD carry out market research to gain insights into
consumer preferences for products and services. This
research is conducted on an ad-hoc basis to help inform
FBD’s Strategy.
We conduct regular brand health checks via third party
providers throughout the year to assess how our brand
is performing in terms of awareness, consideration and
customer preference.
We undertake website usability testing at least twice a
year which involves observing consumers completing
specific tasks and obtaining feedback from them. The
findings from these tests are used to implement
customer experience improvements, which are measured
to assess their impact. We also conduct targeted user
interviews directly with customers to understand their
experience on our website. FBD utilise third party web
analytics to continuously monitor user experience on
progression through our website, as well as a website
usability monitoring tool to help us to improve our online
customer experience.
Social Media and Online Communication
Channels
The Group utilises various social media (Facebook, X,
LinkedIn) to communicate with stakeholders. A “Contact
us” section is available on the Group’s website for
shareholder, investor, media and general queries.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
157
Privacy
Failure to safeguard consumers' and end users' personal
information impacting individuals
Failure to safeguard consumers' and end users' personal
information impacting FBD
Access to (Quality) Information
Providing a valuable and quality service to customers
Enhanced customer trust and loyalty by providing
valuable, trustworthy and transparent services
IRO legend
Positive Impact
Negative Impact
Opportunity
Risk
IRO listing on page 113-118
S4 CONSUMERS AND END-USERS
Entity- Specific : Farm Safety
Promoting and encouraging farm safety to farming
customers
In partnership with Trustpilot consumers can rate their
overall experience dealing with FBD and give feedback
at any point in time. Overall ratings and feedback are
visible on our website and we also invite our customers
(via email) to rate and review their customer experience
after they have completed a purchase.
Complaints
We operate a comprehensive complaints process, which
is designed to provide our customers with the
opportunity to share their experience and enables us to
learn and improve. We endeavour to address any
concerns highlighted in a timely manner.
Board Representation
One of our Board members is the President of the Irish
Farmers’ Association, the largest representation body of
our farming customer base. The same Board member is
also Vice President of the Committee of Professional
Agricultural Organisations and represents Irish farmers
at a European level on COPA, which is the official
umbrella representative body for European farmers.
Consumer and Culture Committee (CCC)
Our Consumer and Culture Committee (CCC) is tasked
with monitoring key consumer risk appetite metrics and
trends and taking action when relevant. The Committee
is a subcommittee of the Executive Risk Committee
(ERC) and supports operational functions within FBD
ensuring that the material consumer risks facing the
Group have been identified and that appropriate
arrangements are in place to manage and mitigate those
risks effectively.
The Group Chief Commercial Officer, Chief Underwriting
Officer and Chief Claims Officer are the executive
management with specific responsibility for Consumer
Risk in FBD. To meet this responsibility operational
functions provide quarterly updates to the CCC. These
updates enable the CCC to assess the effectiveness of
FBD's engagement with customers and ensure
remediation action is taken when required.
While FBD is always reviewing and enhancing its
customer service, no specific action plans were deemed
necessary to address customer service related IROs.
Privacy
Our approach and policies
FBD processes personal information from and about our
farm, business and retail customers and third parties.
This is a vital and necessary part of providing insurance
products. All customer groups could potentially be
negatively impacted if a privacy or data breach were to
occur. Keeping information secure is an important
priority for us. We continue to implement appropriate
technical and organisational measures to protect data
from unlawful or unauthorised processing and against
accidental loss, destruction, damage, alteration or
disclosure.
FBD has a wide range of policies and procedures in
place in support of this. Key polices are described in
further detail below.
In accordance with the GDPR, FBD has a designate DPO
who plays an integral role in safeguarding the personal
information of our consumers and end users.
Our Data Protection policy sets out the organisational
structures, policies and procedures, and technical
measures which FBD has implemented to ensure
compliance with GDPR and the Data Protection Acts,
and to ensure that all FBD employees are aware of their
responsibilities in this area. This policy is owned by our
designated DPO and reviewed at least annually by the
Board.
All personal data must be processed, stored, shared and
disposed of in a manner which protects the data subject
and FBD. This is particularly important when processing
sensitive personal data. FBD achieve this by having
Information Security Policies that define where and how
data is transmitted, stored and accessed. Our
Information Security Policy applies to all employees, is
owned by the Group Chief Technology and Operations
Officer and reviewed at least annually by the Board.
FBD's Data Protection Statements set out how FBD
processes and protects personal data so the data
subject is aware of how we process their personal Data
and the legal basis for doing so. These statements are
issued/made available to all data subjects whose data
we process. A data protection notice is displayed on the
FBD website and is issued with all policy and claim
engagements. Data Protection is also addressed within
FBD’s Terms of Business which are provided to all
customers.
FBDs Cookie Policy sets out how we deploy cookies and
manage cookie consent on our websites. Our Cookie
Policy is owned by the Group Chief Technology and
Operations Officer and is reviewed at least annually by
Security Steering Committee. FBD websites have a
cookie notice displayed which allows the customer to
understand what cookies FBD want to place and allow
the data subject to consent to the level of cookies that
they will allow FBD to place on their computer. FBDs
cookie policy is available on our website.
The Records Retention Policy sets out the maximum and
minimum periods for which personal data should be
retained. Our Records Retention Policy is owned by the
DPO and reviewed at least annually by the Executive
Management Team. Material amendments to this policy
are reviewed by the Board.
The Data Protection Acts provide data subjects specific
rights over their data, i.e. the right to be informed, the
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
158
right of access, the right to be forgotten, the right of
rectification, and the right to object to processing. FBD
has processes that govern the handling of data subject
Rights requests that must be responded to in most
cases within 30 days unless the complexity requires an
extension.
Our Data Breach Reporting process provides a
framework for data breach escalation and reporting
procedures, both internally and to the Data Protection
Commissioner (DPC). FBD must report data breaches to
the DPC within 72 hours of discovery, unless the data
breach is unlikely to result in a risk to the rights and
freedoms of the data subject, and all employees are
aware of this obligation and assist in achieving this
measure.
The FBD Clean Desk and Clear Screen Policy requires
that all FBD employees secure personal data and
business confidential data when unattended. This policy
is owned by the Group Chief Technology and
Operations Officer and reviewed at least annually by
the Security Steering Committee.
Actions:
•
Our Data Protection notices are subject to annual
review, and if a major change is made, the statement
needs to be reissued to data subjects impacted. The
data protection notice is displayed on the FBD
website and issued with all policy and claim
engagements.
•
A record of all processing activities is reviewed
annually by the DPO and periodic privacy impact and
maturity assessments are conducted with respect to
customer and end user data.
•
Confidentiality, integrity and availability of consumer
data is protected through a range of ongoing
business and technical controls including security
awareness training for all employees, specialist
security training for specific groups, malware
protection, device and user authentication,
appropriate Business Continuity Policy, IT Disaster
Recovery plans as well as capacity and configuration.
The Business Continuity Policy owned by the Chief
Technology and Operations Officer and reviewed at
least annually by the Board.
•
FBD conduct risk assessments and utilise Non-
Disclosure Agreements (NDAs) before engaging any
third party for the provision of services that allow
them access to FBD information assets. FBD define
the process for IT security assessment in our IT
Security Supplier Policy. Our Security Supplier Policy
is owned by Group Chief Technology and Operations
Officer and is reviewed at least annually by Security
Steering Committee
•
An appropriate Business Continuity Policy and IT
Disaster Recovery plan allow FBD to manage a
natural disaster, malicious attack, accident or other
disruptive event. These are communicated to all
relevant parties, regularly tested and maintained.
Entity-Specific : Farm Safety
Our approach
Farming is a high-risk industry and one of FBD’s
objectives is to support initiatives which will make the
farm a safer place for all our farm customers and wider
community. FBD’s Farm Safety campaigns aim to
encourage farmers to make small but meaningful
changes to their working behaviour. We focus on
promoting awareness of the critical behavioural changes
required through press, online adverts, social media
safety messages and farm safety signs through our
network of branches and via the farm safety campaigns
and events. Below is a summary of 2024 farm initiatives.
Actions
Farm safety is a critical aspect of sustainability in
agriculture. FBD's ongoing actions in this area relate to
all our farm customers. The actions can be grouped into
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
159
three main categories, communications and awareness,
accident prevention measures and training.
Communications and awareness:
•
10,000 farm safety signs were distributed through
the FBD branch network to farm customers during
2024. These signs are designed to improve safety
awareness and to help keep farmers, farm workers,
family members and visitors focused on safety when
they enter the farm.
•
The FBD National Marts Farm Safety Awareness and
Remembrance Campaign was launched in December
2024 and for 2 weeks. This campaign was a
partnership with The Irish Co-operative Organisation
Society (ICOS), Associated Livestock Marts (ALM),
The Health & Safety Authority (HSA), the Farm
Safety Partnership (FSP) and Embrace Farm. The aim
of the campaign was to start the farm safety
conversation in marts, improve farm safety
awareness and help prevent accidents from
occurring. The focus of the campaign was on
Livestock and Safety of the Elderly.
•
FBD runs regular farm safety communications in the
media. During 2024, FBD ran monthly farm safety
adverts in the Irish Farmers Journal and in the Irish
Farmers Monthly. These articles were supported by
social media safety campaigns using video clips from
the “Managing Farm Health and Safety” video series.
These focused on timely, seasonal hazards, their
associated risks and appropriate safety controls and
message.
•
FBD worked closely with the IFA to promote Farm
Safety Week 2024. During this week farmers were
encouraged to review working practices to ensure
their farm is safe. The IFA and FBD promoted the
initiative through videos, leaflets and a targeted
media campaign incorporating both traditional and
digital media.
Accident prevention measures :
•
FBD have a dedicated Risk Survey Team who work
directly with farms, marts, and agricultural
businesses to help improve safety standards and
awareness in the workplace. FBD's Underwriting
Head of Product represents FBD on the National
Farm Safety Partnership Advisory Committee
(FSPAC) to the Health and Safety Authority. During
2024 the FSPAC worked on the delivery of the
actions highlighted in the Farm Safety Action Plan
2021-2024, which aims to reduce the level of
fatalities, serious injuries, and ill health in the
agriculture sector.
•
During 2024 , FBD offered all its mart customers free
independent mart risk management surveys. The
idea of the service was to support customers and
help advise them of HSA guidance and best practice
regarding facility and operational standards.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
160
Training Programmes
•
FBD worked with Teagasc in developing and
delivering farm safety exhibits at the Grange open
day 2024 to promote farm safety. The topics
covered by the exhibits included tractors, machinery,
livestock, work at height and farm buildings.
Pictured at 2024 Grange open day (Left to Right) Darren Akins,
(HSA), Martin Heydon TD (recently appointed Minister for
Agriculture, Food and the Marine ), Liam Herlihy (FBD) and Ciaran
Roche (FBD).
•
FBD organised and participated in “Champions for
Safety” seminars and events across all Agricultural
Colleges around the country during the year. The
initiative has been running for over a decade and
encourages farming students to become champions
for safety and stop taking risks.
•
FBD sponsored the annual FBD Health and Safety
Awards at the UCD School of Agriculture and Food
Science Awards Ceremony. This awards ceremony
celebrates and acknowledges the excellent
achievements of students during the academic
session 2023/2024. Three students won awards and
a number of students were awarded certificates for
their achievements in the Health Welfare and Safety
module.
•
Farm Safety Live is delivered by Farm Relief Services
(FRS) Training, the HSA and FBD in conjunction with
the Tullamore Show. It is an interactive exhibition of
farm safety demonstrations, developed to get
people thinking more about safety on the farm,
giving them practical tips and actions to take home.
Pictured at the launch of “Farm Safety Live” (Left to Right): Joe
Molloy (Chair Tullamore Show) , Martina Gormely (HSA), Jim
Dockery (FRS) and Ciaran Roche (FBD).
Human Rights of Consumers - Social
Inclusion
Our approach and policies
FBD offices are nationwide and our sales employees can
provide our services in a location that suits the
customer.
FBD does not discriminate in the provision of its
products and services on any of the grounds prohibited
by the Equal Status Acts 2000-2015. Our robust pricing
governance is in place to support the application of
principals of fairness. We have a robust Product
Oversight and Governance process in place and conduct
an annual Pricing Practice Review. These processes allow
us to confirm our compliance with the General Principles
of the Consumer Protection Code to act honestly and
fairly and the best interest of customers, to assess
customer risk and ensure customer outcomes are
considered in our pricing and product design.
Our Vulnerable Customer Policy outlines our approach
to identifying and managing vulnerable customers in
accordance with the Consumer Protection Code. This
policy is owned by the Group Chief Commercial Officer
and reviewed annually by the Compliance function.
Our Code of Conduct policy has been updated to
explicitly highlight our dedication to honouring
internationally recognised human rights relating to our
consumers and end users. More information on our Code
of Conduct policy is available under section G1 Business
Conduct.
Actions:
•
We continue to update the wordings across our
suite of policy booklets to ensure that they use plain
language and are more readily understood by our
customers. We complete annual reviews of our
wordings, utilising a range of inputs including
customer feedback and complaints. This action
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
161
ensures that all customer groups who are dependent
on accurate and accessible information can make
informed decisions.
•
The European Accessibility Act coming into force in
2025 mandates that a range of applications and
services, including many types of online experiences
such as e-commerce websites and mobile apps, are
accessible to people with disabilities. We are
currently working towards a AAA accessibility rating.
•
FBD is a member of Age Friendly Ireland. This
programme is a Government initiative to prepare for
the rapid ageing of our population. It aims to create
an inclusive, equitable society in which older people
can live full, active, valued and healthy lives. Age
Friendly Ireland supports businesses to implement
low cost changes which signal a strong welcome for
older people. Employee training has taken place to
support FBD employees in contributing to this
programme.
Remediation and Channels to Raise
Concern
Consumer Complaints
FBD welcomes feedback from consumers about the
service it provides. A consumer complaint can be an
opportunity to address consumer dissatisfaction, retain
consumer loyalty and improve service delivery to
prevent similar issues reoccurring. We are committed to
ensuring a positive experience for all consumers and we
aim to resolve complaints as efficiently and as fairly as
possible. The Consumer Protection Code (CPC) requires
that all financial services providers have in place written
procedures for the effective handling of complaints.
FBD’s complaints procedure is available on our website
and outlines how complaints can be made via phone, in
person at any of our sales offices nationwide or by e-
mail and outlines the relevant contact details. All
employees are responsible for being knowledgeable
about FBD’s consumer complaint process and endeavour
to resolve complaints at the first point of contact.
Some complaints may not warrant a formal investigation.
These are still recorded to facilitate early service
improvements, and it is crucial to confirm that the
consumer does not want a formal investigation.
Complaints under formal investigation are managed by
designated employees within each business area and
must be logged immediately in the complaints database,
with all related communications saved, adhering to CPC
regulations.
The Financial Services and Pensions Ombudsman (FSPO)
is a statutory office which deals independently with
unresolved complaints from consumers about their
dealings with financial services providers. FSPO
complaints are referred to the FSPO for investigation
and follow specific procedures and timelines. The FSPO
will only accept complaints if there is evidence the
consumer has already informed the company of the
issue and given the company a reasonable opportunity
to resolve the complaint.
FBD engage the services of other companies to act on
their behalf. Complaints may be received directly by a
service provider from a FBD customer or the customer
can make the complaint about the service provider
directly to FBD. Service providers submit their complaint
logs to FBD on, at least, a quarterly basis.
Business areas report regularly to relevant governance
fora on new errors identified, progress on remediation of
open complaints, organisational learning insights and
verification of continuous respect for Human Rights and
Principles. The EMT receive a quarterly overview of all
complaints, including those escalated to the FSPO and
their outcomes.
Our Consumer Complaints Policy is owned by FBD’s
Complaints Steering Group and reviewed at least
annually.
Reports during the period
No cases of non-respect of the UN Guiding Principles on
Business and Human Rights, ILO Declaration on
Fundamental Principles and Rights at Work or OECD
Guidelines for Multinational Enterprises that involve
consumers and/or end-users have been reported in our
downstream value chain.
Targets
Currently, we have not set time-bound and outcome-
oriented targets that meet the criteria for effectively
reducing negative impacts, advancing positive impacts,
or managing material risks and opportunities related to
consumer and end users, as the work on determining
IROs is a relatively new exercise for FBD.
However, we recognise the importance of establishing
robust targets to drive meaningful progress in this area
and are working to establish a clear consumer
engagement process that will involve engaging directly
with FBD’s customers and end users. In the meantime,
we are focused on gathering data and assessing current
practices to ensure that future targets are effective and
aligned with stakeholder needs.
In relation to the farm safety entity-specific disclosure,
FBD will continue to support farm safety initiatives,
however do not plan on setting any targets in this area
given the downstream impact is outside of FBD's direct
control.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
162
Governance
Governance considers how sustainable a company is (business model; financial and outputs) and how
a company functions ethically across its corporate culture, its board and management and its
disclosures
European Sustainability Reporting
Standard (ESRS) G1 - Business Conduct
Corporate culture
Risk can never be fully eliminated in business, and good business conduct relies on the appropriate and
responsible behaviour of individuals. Consequently, the matters of ethics and adequate governance
structures are considered material from a financial perspective in our own operations. Our culture
defines the values and behaviours that we will champion and promote as a Group. FBD believes that
real sustainable culture is developed and shaped by the behaviour of individuals at all levels across the
organisation.
Our approach and policies
The Group’s Board and senior management set the ethical tone for the Group. There are a number of
Group policies in place and adherence with these policies influence employee behaviour.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
163
Corporate Culture
ESG-linked incentives prioritising the ESG agenda
Robust governance increasing oversight and control of
ESG performance
Reputational damage owing to unethical business conduct
Failure to maintain an adequate governance structure
leading to regulatory and/or reputational issues
Corruption and Bribery
Compliance management for all stakeholders
Reputational damage owing to the existence of corruption
or bribery in the value chain
IRO legend
Positive Impact
Negative Impact
Opportunity
Risk
IRO listing on page 113-118
G1 BUSINESS CONDUCT
Management of Relationships with Suppliers
Penalties/reputational damage owing to delayed
payments to suppliers
Protection of Whistle-blowers
Whistleblowing policy implementation for workers
Policy
Objective
Approved By
Policy Owner
Code of Conduct
To outline the core values, standards of conduct and behaviour
expected from each individual within the organisation.
Board, at least
annually
Group Chief Human
Resources Officer
Conflicts of Interest
To set out standards to assist in the identification of conflicts of
interest (actual, perceived or potential) and where they arise to
ensure that they are managed in a manner consistent with the overall
business strategy, risk appetite, in the best interests of the Group
and all its stakeholders including consumers.
Board, at least
annually
Group Chief Human
Resources Officer
Speak Up
To ensure that concerns are appropriately investigated and that all
employees are aware of the arrangements and protection in place for
raising concerns in respect of wrongdoing in the Group in line with
the Protected Disclosures (Amendment) Act 2022.
Board, at least
annually
Group Chief Human
Resources Officer
Reputational Risk
To outline the Group’s prudent and proactive approach to managing
reputational risk.
Board, at least
annually
Group Chief Executive
Officer
Anti-Fraud
To set out the principles around; Roles and Responsibilities, Actions
constituting fraud, Reporting and Investigation Responsibilities,
Disciplinary Procedures and Recovery of losses.
Board, at least
annually
Group Chief Financial
Officer
Fitness and Probity
To ensure that FBD has processes and procedures to demonstrate
compliance with the Standards and the Central Bank (Individual
Accountability Framework) Act 2023.
Board, at least
annually
Group Chief Human
Resources Officer
Individual
Accountability Policy
To ensure that FBD has structures in place to ensure and
demonstrate compliance with the Central Bank of Ireland's Individual
Accountability (IAF) Framework.
Board, at least
annually
Group Chief Human
Resources Officer
Conduct Standards
Policy
To support the implementation and embedding of the Conduct
Standards outlined in the Central Bank of Ireland's Individual
Accountability (IAF) Framework. the IAF Act.
Board, at least
annually
Group Chief Human
Resources Officer
FBD's Code of Conduct Policy outlines the core values expected from each individual within the
organisation and lays down five overarching standards of responsibility and ethical conduct expected
of all employees of the Group.
The five standards are:
1.
Integrity and Honesty
2.
Errors Prevention and Reporting
3.
Confidentiality
4.
Professionalism
5.
Compliance
The five standards address topics such as equitable treatment amongst colleagues and customers,
gifts and hospitality, use of social media, error prevention and reporting, confidentiality,
professionalism, competency and compliance as well as conflicts of interest. Certain functions within
the Group such as Finance, Claims, Sales, pose elevated risks for corruption and bribery due to their
involvement in critical financial transactions, interactions with external stakeholders, and sensitivity to
regulatory and ethical compliance. We require all our workers, at every level, to align their behaviour
with this code.
The FBD Competency Framework links our values to our behaviours.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
164
Our Values
RESPECT
BELIEF
INNOVATION
COMMUNITY
OWNERSHIP
COMMUNICATION
The Board and EMT take a leading role in establishing, developing, communicating, promoting and
evaluating the desired culture. This is achieved through a number of ways, including:
•
a clearly defined Strategy that is aligned to our culture and is actively considered and set by the
Board and EMT;
•
ongoing EMT communication to all employees, including through regular town halls, relating to our
Values and their importance to the delivery of the strategy;
•
investment in leadership development to build competence and embed the desired leadership
culture;
•
holding our people to account for how their behaviour aligns to FBD’s values, including embedding
a consideration into employee objectives and reward structures;
•
ESG-linked incentives in place for CEO and CFO;
•
having Company policies readily accessible online;
•
all employees are required to complete compulsory e-learning courses on conduct as part of their
annual compliance passports. The training covers a wide range of topics across each quarter of the
reporting period, providing a good understanding of FBD’s policy on good business conduct
including whistleblower reporting channels, anti-corruption and ethical guidelines.
Individual Accountability Framework
In 2023 FBD saw the introduction of the Central Bank of Ireland’s Individual Accountability Framework
(IAF) seeking to incentivise positive behaviours and promote an improved and more transparent culture
in regulated financial service providers. The framework places greater emphasis on individual
accountability and makes it clearer who is responsible for what within firms.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
165
OUR BEHAVIOURAL
COMPETENCIES
Customer Focus Problem
Solving
Cultivating Relationships
Communicating Effectively
Build Integrity & Trust
Continuously Seeking to
Improve
Leading Self Leading Others
The IAF has four distinct elements:
1.
Senior Executive Accountability Regime (SEAR): SEAR requires in-scope firms to set out clearly
where responsibility and decision-making lie within the firm’s senior management structure. It also
imposes a “duty of responsibility” on those in a Pre-approval Controlled Function (PCF) role to
take reasonable steps on an ongoing basis to meet the required SEAR requirements.
2.
Conduct Standards: Introduces three tiers of Conduct Standards; Business Conduct Standards,
Common Conduct Standards and Additional Conduct Standards. The Common Conduct
Standards apply to all those in Controlled Function (CF) roles, while the Additional Conduct
Standards only apply to those in PCF and ‘significant influence’ roles (CF1 roles). The Business
Conduct Standards apply at an entity level i.e., to FBD. It also imposes a “duty of responsibility”
on those in CF roles to take reasonable steps on an ongoing basis to meet the required Conduct
Standards.
3.
Enhancements to the Central Bank’s existing Fitness and Probity (F&P) regime: Under the IAF,
firms are required to certify in writing that they are satisfied that a person complies with the F&P
standards. The regime also brings holding companies in scope of the Fitness and Probity
requirements for the first time.
4.
Increased Enforcement Powers for the Central Bank: Amends the Administrative Sanctions
Procedure (ASP), so that the Central Bank can now take direct enforcement action against an
individual for a breach of their obligations under the IAF i.e., for a breach of the Duty of
Responsibility or the Common/Additional Conduct Standards .
FBD welcome this regulation and have implemented enhancements to our existing policies, processes
and training regime in support of the regulation including introducing an overarching Individual
Accountability policy, Conducts Standards Policy, Reasonable Steps Guidance and enhanced the
existing Fitness and Probity Policy.
Protection of Whistle-blowers
FBD has no appetite for breaches of compliance and regulatory requirements. Our commitment to
business integrity is clearly articulated in our Speak Up Policy and procedures. The Speak Up Policy
applies to those defined as a “worker” under the Protected Disclosures Act, this includes permanent,
part-time and fixed-term employees, senior management, Directors, non-executive Directors,
volunteers, trainees, shareholders, consultants, former employees and job applicants. The policy
identifies concerns that may constitute potential or actual wrongdoings including:
•
acts of bribery;
•
corruption or fraud;
•
breaches of applicable laws/regulations;
•
gross negligence, mismanagement or malpractice that may harm the reputation or financial
wellbeing of FBD;
•
environmental and health and safety issues;
•
confidentiality breaches;
•
serious breaches of the Group’s policies and procedures; and
•
misleading or unethical behaviour.
In accordance with the Protected Disclosures Act 2022, FBD have established a standard operating
procedure to ensure that concerns are thoroughly and objectively investigated in a timely manner. FBD
encourages individuals to come forward and promises to protect whistleblowers, acting in good faith,
against retaliation. All reporting is dealt with confidentially and will only be shared on a strict need to
know basis. Investigators are separate from the chain of management involved in the matter.
Whistleblowers have the option to remain anonymous. The Group Chief Human Resources Officer
reports periodically to the Audit Committee on Speak Up activity and following the completion of any
formal investigation, the Group Chief Human Resources Officer will inform the Group Chief Executive
Officer, Group Chief Financial Officer, Audit Committee Chairs and FBD Holdings plc Chair and FBD
Insurance plc Chair of the conclusion from the investigation including details of any action taken or
proposed to be taken.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
166
Corruption and Bribery
Prevention and detection including training
Our commitment to operating responsibly and conducting our operations to the highest ethical and
professional standards is outlined in our Conduct policies listed under the corporate culture section
above. Our Speak Up Policy and procedures outlined under the 'Protection of whistleblowers' section
above covers concerns relating to bribery and corruption.
FBD’s code of conduct policy governs both the giving and receiving of gifts and is applicable to all
employees. Under the policy, every employee has the obligation to declare and record where gifts and
hospitality valued, greater than a specified minimal threshold, have been offered by suppliers or any
bodies of interest and whether these were accepted or declined.
FBD conduct an annual business wide anti-money laundering (AML) and countering of the financing of
terrorism (CFT) risk assessment co-ordinated by our Compliance Function. This report aids in our
ongoing efforts to prevent and address such incidents. Specific Anti money laundering, Countering the
financing of terrorism and Financial Sanctions (AML/CFT) policies and procedures are in place setting
out a range of measures used by the Group in respect of:
•
identifying and verifying the identify of customers;
•
on-going monitoring of business relationship with customers;
•
reporting suspicious transactions internally and to the relevant authorities as required;
•
financial sanction screening;
•
mandatory group-wide staff training; and
•
ensuring overall compliance with the Criminal Justice (Money Laundering and Terrorist Financing)
Acts 2010 and any financial sanctions imposed by the European Union or the United Nations.
Enhanced due diligence is applied to any identified high-risk customers including any identified
Politically Exposed Person (PEP).
The AML/CFT policy is owned by the Head of Compliance who holds the Central Bank of Ireland Pre-
Approval Controlled Function Role ‘PCF-52 Head of Anti-Money Laundering and Counter Terrorist
Financing’. This policy is reviewed at least annually by the Board.
Additionally, FBD have an Anti-fraud policy which outlines the roles and responsibilities for the
reporting and investigation of fraud.
Annual mandatory compliance training is rolled out to all employees irrespective of level and is
designed to ensure that employees understand their legal obligations, ethical responsibilities, and the
potential consequences of non-compliance. During the period the below coverage was noted:
Percentage of functions-at-risk covered by training programmes
100 %
Topics Covered:
Ethics
Vulnerable Customer
Code of Conduct
Error Reporting
Consumer Protection Code
Anti Money Laundering
Speak Up Policy
Operational Resilience
Data Protection 2024
Complaints Handling
FBD Safety Statement
Risk Function
Information security
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
167
Non-executive Directors are not included as part of the employee mandatory compliance training.
Details of the Board composition, diversity, experience and skills, including expertise on business
conduct matters, are disclosed within the Corporate Governance report.
Incidents
No convictions or fines for violation of anti-corruption laws and anti-bribery laws were reported during
the period. While FBD is always reviewing and enhancing its control environment, no specific actions
were required to be taken to address breaches in procedures and standards of anti-corruption and
anti-bribery.
Management of Relationships with Suppliers Including Payment
Practices
FBD is a responsible buyer and we set high standards for ourselves and our supply chain. We insist
that all of our business activities are conducted lawfully and above all, ethically. FBD expects the same
of our suppliers and have outlined this in greater detail through the FBD Supplier Charter. The FBD
Supplier Charter is publicly available on the FBD Group website and all Purchase Orders received by a
supplier have a direct hyperlink to its location. Larger, more strategic supplier agreements also include
a clause directly referencing the FBD Supplier Charter and how breach of the charter will be
considered a material breach of agreement.
Suppliers must comply with all relevant legislation and respect our Health & Safety Culture. We
support the Universal Declaration of Human Rights and work to enforce these rights within our supply
chain. We expect the same of our suppliers. FBD expects that all of our suppliers pay their employees
at least the minimum wage, or a fair representation of the prevailing industry wage (whichever is the
higher), and provide each employee with all legally mandated benefits.
FBD’s centralised Procurement Policy provides a framework to establish best practice and alignment of
procurement standards across all FBD business units. This includes a sustainability decision approach
supported by the use of an ESG questionnaire in FBD’s tender process. Returns of the ESG
questionnaire typically form 10% of the overall scoring criteria. The Procurement Policy is owned by the
Group Chief Financial Officer and is reviewed at least annually by the Executive Management Team.
Annually, all FBD suppliers are assigned tiers dependent on the contract value and associated risks.
Tiered contracts are then managed accordingly through the established procurement policies and
procedures.
FBD conduct regular systematic risk based and operational performance reviews of all Critical
Outsource Service Providers in line with FBD's Outsourcing Policy and regulatory guidelines. A suite of
annual due diligence requirements are completed on all Outsource Service Providers (Critical and non-
Critical).
FBD understand how important prompt payment is. We do not apply payment terms to supplier
invoices hence we do not delay payments to match credit terms. Payments are made in the next
available payment run once the invoice and supplier are fully approved. Standard payment runs are
made three times per month allowing for timely payment to suppliers. Continuous monitoring of the
timing of payments is embedded within FBD’s Risk Management Framework.
In 2024 suppliers were paid on average 35 days from invoice date, which is within our target of less
than 38 days. This excludes any amounts paid directly to suppliers that are linked to individual claims
as these are monitored in accordance with the Central Bank of Ireland’s Consumer Protection Code.
As at the year-end reporting date there were no legal proceedings outstanding for late payments.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
168
Appendix
Disclosure requirements complied with
The following tables provide a list of disclosure requirements in preparing the Sustainability Statement,
following the outcome of the materiality assessment, including the page numbers and/or paragraphs
where the related disclosures are located.
Cross-cutting standards Disclosure requirements
ESRS 2 General disclosures
Section/
Report
Page Additional Information
BP-1
General basis for preparation of the Sustainability
Statement
SS
101
General Basis for Preparation
BP-2
Disclosures in relation to specific circumstances
SS
121
Double Materiality Assessment Process
3. IRO Identification - time horizons
Datapoints that derive from other EU legislation
SS
174
Appendix
Datapoints that derive from other EU legislation.
GOV-1
The role of the administrative, management and
supervisory bodies
SS
MR
MR
106
42
67
Sustainability Governance framework
Corporate Governance Report
Nomination & Governance Report
GOV-2
Information provided to and sustainability matters
addressed by the undertaking’s administrative,
management and supervisory bodies
SS
SS
SS
106
119
125
Sustainability Governance framework
Double Materiality Assessment Process
Future-proofing our IRO management process
GOV-3
Integration of sustainability-related performance in
incentive schemes
MR
74
Report on Directors' Remuneration
GOV-4
Statement on sustainability due diligence
SS
172
Appendix
Statement on sustainability due diligence
GOV-5
Risk management and internal controls over
sustainability reporting
MR
SS
18
109
Risk & Uncertainties Report
Features of Internal Control in relation to the non-
financial reporting process
SBM-1
Strategy, business model and value chain (products,
markets, customers)
MR
SS
16
98
Business Model
ESG Strategy
Strategy, business model and value chain
(headcount by country)
SS
156
Characteristics of Employees
SBM-2
Interests and views of stakeholders
SS
MR
121
62
Stakeholder Mapping and Engagement
Engagement with Stakeholders
SBM-3
Material impacts, risks and opportunities and their
interaction with strategy and business model
SS
SS
SS
SS
SS
101
106
119
110
113
General Basis for Preparation
Sustainability Governance framework
Double Materiality Assessment Process
DMA outcome
Material IROs identified
IRO-1
Description of the process to identify and assess
material impacts, risks and opportunities
SS
119
Double Materiality Assessment Process
IRO-2
Disclosure requirements in ESRS covered by the
undertaking’s Sustainability Statement
SS
169
Appendix
Disclosure requirements complied with
SS Sustainability Statement
MR Management’s review
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
169
Environmental standards Disclosure requirements
ESRS E1
Climate Change
Section/
Report
Page Additional Information
ESRS 2,
GOV-3
Integration of sustainability-related performance in
incentive scheme
SS
106
Sustainability Governance framework
E1-1
Transition plan for climate change mitigation
SS
SS
133
135
Climate change – Actions
Climate change – Targets
ESRS 2,
SBM-3
Material impacts, risks and opportunities, and their
interaction with strategy and business model
SS
119
Double Materiality Assessment Process
ESRS 2,
IRO-1
Description of the processes to identify and assess
material climate related impacts, risks and
opportunities
SS
SS
119
126
Double Materiality Assessment Process
Climate Risk
E1-2
Policies related to climate change mitigation and
adaptation
SS
131
Climate change – Policies
E1-3
Actions and resources in relation to climate change
policies
SS
132
Climate change – Actions
E1-4
Targets related to climate change mitigation and
adaptation
SS
134
Climate change – Targets
E1-5
Energy consumption and mix
SS
135
Energy consumption and mix
E1-6
Gross Scopes 1, 2, 3 and total GHG emissions
SS
136
Gross Scope 1, 2, 3 and total GHG emissions
E1-7
GHG removals and GHG mitigation projects financed
through carbon credits
SS
139
GHG removals and GHG mitigation projects
financed through carbon credits
E1-8
Internal carbon pricing
SS
139
Internal carbon pricing
SS Sustainability Statement
MR Management’s review
ESRS 2,
SBM-2
Interests and views of stakeholders
SS
121
Stakeholder Mapping and Engagement
ESRS 2,
SBM-3
Material impacts, risks and opportunities and their
interaction with strategy and business model
SS
SS
SS
SS
SS
101
106
119
110
113
General Basis for Preparation
Sustainability Governance framework
Double Materiality Assessment Process
DMA outcome
Material IROs identified
S1-1
Policies related to own workforce
SS
SS
SS
SS
146
148
150
151
Key policies
Human rights policy commitments
Workplace accident prevention system
Diversity and inclusion
S1-2
Processes for engaging with own workers and workers’
representatives about impacts
SS
147
Engaging with our own workforce
S1-3
Processes to remediate negative impacts and channels for
own workers to raise concerns
SS
155
Remediation and channels to raise concerns
S1-4
Taking action on material impacts on own workforce, and
approaches to mitigating material risks and pursuing
material opportunities related to own workforce, and
effectiveness of those actions
SS
SS
SS
SS
SS
125
148
150
152
154
Future-proofing our IRO management process
Actions
Actions
Actions
Actions
Social standards Disclosure requirements
ESRS S1
Own workforce
Section/
Report
Page Additional Information
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
170
S1-5
Targets related to managing material negative impacts,
advancing positive impacts, and managing material risks
and opportunities
SS
SS
SS
147
151
152
Listening Survey Scores
Gender Representation
Diversity Gold accreditation
S1-6
Characteristics of the undertaking’s employees
SS
SS
SS
153
156
156
Gender diversity by contract type
Employee turnover
Headcount by country
S1-8
Collective bargaining and social dialogue
SS
149
Coverage rates
S1-9
Diversity metrics
SS
SS
SS
154
153
151
Age Distribution
Gender distribution in number
Gender distribution in percentage
S1-10
Adequate wages
SS
149
Metrics
S1-14
Health and safety metrics
SS
150
Health and safety Incidents during the
reporting period
S1-16
Compensation metrics (pay gap and total compensation)
SS
153
Compensation Metrics
S1-17
Incidents, complaints and severe human rights impacts
SS
149
Metrics
Social standards Disclosure requirements
ESRS S1
Own workforce
Section/
Report
Page Additional Information
SS Sustainability Statement
MR Management’s review
Social standards Disclosure requirements
ESRS S4
Consumers and End-Users
Section/
Report
Page Additional Information
ESRS 2,
SBM-2
Interests and views of stakeholders
SS
121
Stakeholder Mapping and Engagement
ESRS 2,
SBM-3
Material impacts, risks and opportunities and their
interaction with strategy and business model
SS
SS
SS
SS
SS
101
106
119
110
113
General Basis for Preparation
Sustainability Governance framework
Double Materiality Assessment Process
DMA outcome
Material IROs identified
S4-1
Policies related to consumers and end-users
SS
SS
158
161
Privacy
Social Inclusion
S4-2
Processes for engaging with consumers and end users
about impacts
SS
157
Engaging with our consumers and end users
S4-3
Processes to remediate negative impacts and channels for
consumers and end-users to raise concerns
SS
162
Consumer Complaints
S4-4
Taking action on material impacts on consumers and end-
users, and approaches to managing material risks and
pursuing material opportunities related to consumers and
end-users, and effectiveness of those actions.
SS
SS
SS
SS
125
159
159
161
Future-proofing our IRO management process
Actions
Actions
Actions
S4-5
Targets related to managing material negative impacts,
advancing positive impacts, and managing material risks
and opportunities
SS
162
Targets
SS Sustainability Statement
MR Management’s review
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
171
Governance standards Disclosure requirements
ESRS G1
Business conduct
Section/
Report
Page Additional Information
ESRS 2,
GOV-1
The role of the administrative,
supervisory and management
bodies
SS
MR
MR
106
42
67
Sustainability Governance framework
Corporate Governance Report
Nomination & Governance Report
ESRS 2,
IRO-1
Description of the processes to
identify and assess material
impacts, risks and opportunities
SS
119
ESRS 2, Double Materiality Assessment Process
G1-1
Business conduct policies and
corporate culture
SS
SS
163
166
Corporate Culture
Protection of Whistle-blowers
G1-2
Management of relationships
with suppliers
SS
168
Management of relationships with suppliers including payment practices
G1-3
Prevention and detection of
corruption and bribery
SS
167
Corruption and bribery, Prevention and detection including training
G1-4
Incidents of corruption or
bribery
SS
168
Corruption and bribery, Incidents
G1-6
Payment practices
SS
168
Management of relationships with suppliers including payment practices
SS Sustainability Statement
MR Management’s review
Statement on sustainability due diligence
The below table provides a mapping to where in our Sustainability Statement we provide information
about our due diligence process, including how we apply the main aspects and steps of our due
diligence process
a)
Embedding due diligence in governance, strategy, and business model
Information provided to and sustainability matters
addressed by the undertaking’s administrative,
management and supervisory bodies (GOV-2)
General
General
General
106
125
125
Sustainability governance framework
DMA validation and approval
Future-proofing our IRO management process
Integration of sustainability-related performance in
incentive schemes (GOV-3)
Managements
Review
74
Report on Directors' Remuneration
Information about the resilience of the undertaking's
strategy and business model regarding its capacity to
address its material impacts and risks and to take
advantage of its material opportunities. (SBM-3)
General
General
General
119
121
126
Value Chain Analysis
Stakeholder mapping and engagement
Future-proofing our IRO management process
Information about the resilience of the undertaking's
strategy and business model in relation to climate change.
(E1 SBM-3)
General
Environmental
126
128
Climate Risk
Climate Resilience Analysis
b)
Engaging with affected stakeholders in all key steps of the due diligence
How the interests and views of its stakeholders are taken
into account by the undertaking’s strategy and business
model. (SBM-2)
General
121
Stakeholder mapping and engagement
Consultation with affected stakeholders to understand how
they may be impacted (IRO-1)
General
121
Stakeholder mapping and engagement
Statement on sustainability due diligence
Core elements of due diligence
Section/
Report
Page Additional Information
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
172
Processes for engaging with own workers and workers’
representatives about impacts (S1-2)
Social
147
Engaging with our own workforce
Processes for engaging with consumers and end-users
about impacts (S4-2)
Social
157
Engaging with our consumers and end users
Consideration given to the interests of stakeholders in
setting policies (S1-1, S4-1,G1-1, G1-2, MDR-P)
Environmental
Social
Social
Social
Governance
Governance
131
146
158
161
166
168
Climate change policies
People Policies
Privacy policies
Social inclusion policies
Protection of whistle-blowers
Management of relationships with suppliers
c)
Identifying and assessing adverse impacts
Processes to identify and assess (IRO-1)
General
General
Environmental
119
126
128
Double materiality assessment process
Future-proofing our IRO management process
Climate resilience analysis
Whether and how the undertaking developed an
understanding of how people with particular
characteristics, those working in particular contexts, or
those undertaking particular activities may be at greater
risk of harm. (S1 SBM-3)
General
121
Stakeholder mapping and engagement
Whether and how the undertaking developed an
understanding of how consumers and/or end-users with
particular characteristics, or those using particular products
or services, may be at greater risk of harm. (S4 SBM-3)
General
121
Stakeholder mapping and engagement
d)
Taking actions to address those adverse impacts:
Actions and resources related to climate change mitigation
and adaptation (E1-3, MDR-A)
Environmental
132
Climate change – Actions
Approaches to mitigating material risks related to
consumers and end-users (S4-4, MDR-A)
Social
159
Privacy – Actions
e)
Tracking the effectiveness of these efforts and communicating:
Metrics and targets related to climate change mitigation
and adaptation (E1-4, MDR-T, E1-5, E1-6)
Environmental
Environmental
Environmental
134
135
136
Climate change – Targets
Energy consumption - Metrics
Gross Scope 1, 2, 3 and total GHG emissions
Tracking effectiveness of policies and actions through
targets (S4-5, MDR-T)
Social
162
Consumers and end users – Targets
Statement on sustainability due diligence
Core elements of due diligence
Section/
Report
Page Additional Information
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
173
Phased-in concessions availed of
Phased-in concessions availed of in accordance with ESRS 1 Appendix C
ESRS
Disclosure Requirement
ESRS Options
ESRS 2,
SBM-1
Breakdown of total revenue, as included in
its financial statements, by significant
ESRS sectors.
As the European Commission has not adopted a delegated act specifying the
list of ESRS sectors, undertakings are not required to disclose the information
referred to in ESRS 2 paragraph 40 (b) and 40 (c)
ESRS 2,
SBM-3
Description of the processes to identify
and assess material impacts, risks and
opportunities
The undertaking may omit the information prescribed by ESRS 2 SBM-3
paragraph 48(e) (anticipated financial effects) for the first year of preparation
of its Sustainability Statement.
ESRS E1,
E1-9
Anticipated financial effects from material
physical and transition risks and potential
climate-related opportunities
The undertaking may omit the information prescribed by ESRS E1-9 for the first
year of preparation of its Sustainability Statement.
ESRS S1,
S1-7
Characteristics of non-employee workers
in the undertaking’s own workforce
The undertaking may omit reporting for all datapoints in this Disclosure
Requirement for the first year of preparation of its Sustainability Statement.
ESRS S1,
S1-11
Social protection
The undertaking may omit the information prescribed by ESRS S1-11 for the
first year of preparation of its Sustainability Statement.
ESRS S1,
S1-12
Percentage of employees with
disabilities
The undertaking may omit the information prescribed by ESRS S1-12 for the
first year of preparation of its Sustainability Statement.
ESRS S1,
S1-13
Training and skills development
The undertaking may omit the information prescribed by ESRS S1-13 for the
first year of preparation of its Sustainability Statement.
ESRS S1,
S1-14
Health and safety
The undertaking may omit reporting on non-employees for the first year of
preparation of its Sustainability Statement.
ESRS S1,
S1-14
Health and safety
The undertaking may omit the data points on cases of work-related ill-health
and on number of days lost to injuries, accidents, fatalities and work-related ill
health for the first year of preparation of its Sustainability Statement.
ESRS S1,
S1-15
Work-life balance
The undertaking may omit the information prescribed by ESRS S1-15 for the
first year of preparation of its Sustainability Statement.
Datapoints that derive from other EU
legislation
ESRS 2, GOV-1
21(d)
Board's gender diversity
SFDR/BRR
MR
72
ESRS 2, GOV-1
21(e)
Percentage of board members who are independent
BRR
MR
43
ESRS 2, GOV-4
30
Statement on due diligence
SFDR
SS
172
ESRS 2 SBM-1
40 (d) i
Involvement in activities related to fossil fuel activities
SFDR/P3/BRR
Not material
-
ESRS 2 SBM-1
40 (d) ii
Involvement in activities related to chemical production
SFDR/BRR
Not material
-
ESRS 2 SBM-1
40 (d) iii Involvement in activities related to controversial weapons
SFDR/BRR
Not material
-
ESRS 2 SBM-1
40 (d) iv Involvement in activities related to cultivation and
production of tobacco
BRR
Not material
-
ESRS E1-1
14
Transition plan to reach climate neutrality by 2050
EUCL
SS
133
135
ESRS E1-1
16 (g)
Undertakings excluded from Paris-aligned Benchmarks
P3/BRR
Not relevant
-
Datapoints that derive from other EU legislation.
The table below includes all the datapoints that derive from other EU legislation as listed in ESRS 2 appendix B, indicating where the data points can be
found in our report and which data points are assessed as ‘Not material’.
Disclosure
Requirement
Data
point
Disclosure
Requirement
Legislation
Section/
Report
Page
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
174
ESRS E1-4
34
GHG emission reduction targets
SFDR/P3/BRR
SS
135
ESRS E1-5
38
Energy consumption from fossil sources disaggregated by
sources (only high climate impact sectors)
SFDR
Not relevant
-
ESRS E1-5
37
Energy consumption and mix
SFDR
SS
135
ESRS E1-5
40-43
Energy intensity associated with activities in high climate
impact sectors
SFDR
Not relevant
-
ESRS E1-6
44
Gross Scope 1, 2, 3 and Total GHG emissions
SFDR/P3/BRR
SS
136
ESRS E1-6
53-55
Gross GHG emissions intensity
SFDR/P3/BRR
SS
137
ESRS E1-7
56
GHG removals and carbon credits
EUCL
SS
139
ESRS E1-9
66
Exposure of the benchmark portfolio to climate-related
physical risks
BRR
Not stated –
phased in
concession
_
ESRS E1-9
66 (a);
66 (c)
Disaggregation of monetary amounts by acute and chronic
physical risk; Location of significant assets at material
physical risk
P3
Not stated –
phased in
concession
-
ESRS E1-9
67 C)
Breakdown of the carrying value of its real estate assets by
energy-efficiency classes
P3
Not stated –
phased in
concession
-
ESRS E1-9
69
Degree of exposure of the portfolio to climate-related
opportunities
BRR
Not stated –
phased in
concession
_
ESRS E2-4
28
Amount of each pollutant listed in Annex II of the E-PRTR
Regulation emitted to air, water and soil
SFDR
Not material
-
ESRS E3-1
9
Water and marine resources
SFDR
Not material
-
ESRS E3-1
13
Dedicated policy
SFDR
Not material
-
ESRS E3-1
14
Sustainable oceans and seas
SFDR
Not material
-
ESRS E3-4
28 c)
Total water recycled and reused
SFDR
Not material
-
ESRS E3-4
29
Total water consumption in m3 per net revenue on own
operations
SFDR
Not material
-
ESRS 2-SBM 3-E4
16 (a) i
Activities negatively affecting biodiversity-sensitive areas
SFDR
Not material
-
ESRS 2-SBM 3-E4
16 (b)
Land degradation, desertification, or soil sealing
SFDR
Not material
-
ESRS 2-SBM 3-E4
16 c)
Threatened species
SFDR
Not material
-
ESRS E4-2
24 (b)
Sustainable land / agriculture practices or policies
SFDR
Not material
-
ESRS E4-2
24 c)
Sustainable oceans / seas practices or policies
SFDR
Not material
-
ESRS E4-2
24 (d)
Policies to address deforestation
SFDR
Not material
-
ESRS E5-5
37 (d)
Non-recycled waste
SFDR
Not material
-
ESRS E5-5
39
Hazardous waste and radioactive waste
SFDR
Not material
-
ESRS 2-SBM3-S1
14 (f)
Risk of incidents of forced labour
SFDR
SS
148
ESRS 2-SBM3-S1
14 (g)
Risk of incidents of child labour
SFDR
SS
148
ESRS S1-1
20
Human rights policy commitments
SFDR
SS
148
147
155
ESRS S1-1
21
Due diligence policies on issues addressed by the
fundamental International Labor Organisation Conventions 1
to 8
BRR
SS
148
ESRS S1-1
22
Processes and measures for preventing trafficking in human
beings
SFDR
SS
148
ESRS S1-1
23
Workplace accident prevention policy or management
system
SFDR
SS
150
ESRS S1-3
32 c)
Grievance/complaints handling mechanisms
SFDR
SS
155
Datapoints that derive from other EU legislation.
The table below includes all the datapoints that derive from other EU legislation as listed in ESRS 2 appendix B, indicating where the data points can be
found in our report and which data points are assessed as ‘Not material’.
Disclosure
Requirement
Data
point
Disclosure
Requirement
Legislation
Section/
Report
Page
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
175
ESRS S1-14
88 (b)
and c)
Number of fatalities and number and rate of work-related
accidents
SFDR/BRR
SS
150
ESRS S1-14
88 (e)
Number of days lost to injuries, accidents, fatalities or
illness
SFDR
Not stated –
phased in
concession
-
ESRS S1-16
97(a)
Unadjusted gender pay gap
SFDR/BRR
SS
153
ESRS S1-16
97(b)
Excessive CEO pay ratio
SFDR
SS
153
ESRS S1-17
103 (a)
Incidents of discrimination
SFDR
SS
149
ESRS S1-17
104 (a)
Non-respect of UNGPs on Business and Human Rights and
OECD
SFDR/BRR
SS
149
ESRS 2-SBM3-S2
11 (b)
Significant risk of child labour or forced labour in the value
chain
SFDR
Not material
-
ESRS S2-1
17
Human rights policy commitments
SFDR
Not material
-
ESRS S2-1
18
Policies related to value chain workers
SFDR
Not material
-
ESRS S2-1
19
Non-respect of UNGPs on Business and Human Rights, ILO
principles or and OECD guidelines
SFDR/BRR
Not material
-
ESRS S2-1
19
Due diligence policies on issues addressed by the
fundamental International Labor Organisation Conventions 1
to 8
BRR
Not material
-
ESRS S2-4
36
Human rights issues and incidents connected to its
upstream and downstream value chain
SFDR
Not material
-
ESRS S3-1
16
Human rights policy commitments
SFDR
Not material
-
ESRS S3-1
17
Non-respect of UNGPs on Business and Human Rights, ILO
principles or and OECD guidelines
SFDR/BRR
Not material
-
ESRS S3-4
36
Human rights issues and incidents
SFDR
Not material
-
ESRS S4-1
16
Policies related to consumers and end users
SFDR
SS
161
157
162
ESRS S4-1
17
Non-respect of UNGPs on Business and Human Rights and
OECD guidelines
SFDR/BRR
SS
162
ESRS S4-4
35
Human rights issues and incidents
SFDR
SS
162
ESRS G1-1
10 (b)
United Nations Convention against Corruption
SFDR
SS
167
ESRS G1-1
10 (d)
Protection of whistle- blowers
SFDR
SS
166
ESRS G1-4
24 (a)
Fines for violation of anti-corruption and anti-bribery law
SFDR/BRR
SS
168
ESRS G1-4
24 (b)
Standards of anti- corruption and anti-bribery
SFDR
SS
168
Datapoints that derive from other EU legislation.
The table below includes all the datapoints that derive from other EU legislation as listed in ESRS 2 appendix B, indicating where the data points can be
found in our report and which data points are assessed as ‘Not material’.
Disclosure
Requirement
Data
point
Disclosure
Requirement
Legislation
Section/
Report
Page
SFDR
Sustainable Finance Disclosure Regulation
P3
EBA Pillar 3 disclosure requirements
BRR
Climate Benchmark Standards Regulation
EUCL
EU Climate Law
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
176
Independent practitioners’ limited
assurance report on FBD Holdings plc’s
Sustainability Statement
To the Directors of FBD Holdings plc
Limited assurance conclusion
We have conducted a limited assurance engagement on the consolidated Sustainability Statement of
FBD Holdings plc (the “Group”), included in the Sustainability Statement section of the Report of the
Directors (the “Sustainability Statement”), as at 31 December 2024 and for the year then ended,
prepared in accordance with Part 28 of the Companies Act 2014.
Certain required disclosures have been presented elsewhere in the Annual Report, rather than in the
Sustainability Statement. These are cross referenced from the Sustainability Statement and are
identified as subject to limited assurance.
Based on the procedures we have performed and the evidence we have obtained, nothing has come to
our attention that causes us to believe that the Sustainability Statement is not prepared, in all material
respects, in accordance with Part 28 of the Companies Act 2014, including:
•
compliance of the sustainability reporting with the European Sustainability Reporting Standards
(“ESRS”);
•
the process carried out by the Group to identify the information reported pursuant to the
sustainability reporting standards, is in accordance with the description set out in the section titled
‘Double Materiality Assessment Process’ on page 119 to page 125; and
•
compliance of the disclosures in subsection ‘EU Taxonomy Regulation’ within the 'Environmental'
section of the Sustainability Statement with Article 8 of EU Regulation 2020/852 (the “Taxonomy
Regulation”).
Basis for conclusion
We conducted our limited assurance engagement in accordance with International Standard on
Assurance Engagements (Ireland) 3000, Assurance engagements other than audits or reviews of
historical financial information - assurance of sustainability reporting in Ireland (“ISAE (Ireland) 3000 ”),
issued by the Irish Auditing & Accounting Supervisory Authority (IAASA).The procedures in a limited
assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable
assurance engagement. Consequently, the level of assurance obtained in a limited assurance
engagement is substantially lower than the assurance that would have been obtained had a
reasonable assurance engagement been performed.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our
conclusion. Our responsibilities under this standard are further described in the Practitioners’
responsibilities section of our report.
Our independence and quality management
We have complied with the independence and other ethical requirements of the International Code of
Ethics for Professional Accountants (including International Independence Standards) issued by the
International Ethics Standard Board for Accountants (IESBA Code), which is founded on fundamental
principles of integrity, objectivity, professional competence and due care, confidentiality and
professional behaviour and the independence requirements of the Companies Act 2014 and the Code
of Ethics issued by Chartered Accountants Ireland that are relevant to our limited assurance
engagement of the Sustainability Statement in Ireland.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
177
The firm applies International Standard on Quality Management (Ireland) 1, which requires the firm to
design, implement and operate a system of quality management including policies or procedures
regarding compliance with ethical requirements, professional standards and applicable legal and
regulatory requirements.
Responsibilities for the Sustainability Statement
As explained more fully in the Statement of Directors’ Responsibilities for the Sustainability Statement
as set out on page 97, the Directors' of the Group are responsible for designing and implementing a
process to identify the information reported in the Sustainability Statement in accordance with the
ESRS and for disclosing this Process in section ‘Double Materiality Assessment Process’ on page 119 to
page 125 of the Sustainability Statement. This responsibility includes:
•
understanding the context in which the Group’s activities and business relationships take place
and developing an understanding of its affected stakeholders;
•
the identification of the actual and potential impacts (both negative and positive) related to
sustainability matters, as well as risks and opportunities that affect, or could reasonably be
expected to affect, the Group’s financial position, financial performance, cash flows, access to
finance or cost of capital over the short, medium, or long-term;
•
the assessment of the materiality of the identified impacts, risks and opportunities related to
sustainability matters by selecting and applying appropriate thresholds; and
•
making assumptions that are reasonable in the circumstances.
The Directors of the Group are further responsible for the preparation of the Sustainability Statement,
in accordance with Part 28 of the Companies Act 2014, including:
•
compliance with the ESRS;
•
preparing the disclosures in subsection ‘EU Taxonomy Regulation’ within the 'Environmental' section
of the Sustainability Statement, in compliance with the Taxonomy Regulation;
•
designing, implementing and maintaining such internal control that the Directors determine is
necessary to enable the preparation of the Sustainability Statement that is free from material
misstatement, whether due to fraud or error; and
•
the selection and application of appropriate sustainability reporting methods and making
assumptions and estimates that are reasonable in the circumstances.
Inherent limitations in preparing the Sustainability Statement
Certain metrics reported within the Sustainability Statement may be subject to inherent limitations, for
example, value chain information relating to emissions data provided by third parties (as discussed in
section ‘Environmental’, subsection ‘Gross Scopes 1, 2, 3 and Total GHG emissions’, and subsection ‘Key
estimates and judgements’ within the ‘General Basis for Preparation’ section of the Sustainability
Statement).
In reporting forward-looking information in accordance with ESRS, the Directors of the Group are
required to prepare the forward-looking information on the basis of disclosed assumptions about
events that may occur in the future and possible future actions by the Group. Actual outcomes are
likely to be different since anticipated events frequently do not occur as expected.
Practitioners’ responsibilities
Our responsibility is to plan and perform the assurance engagement to obtain limited assurance about
whether the Sustainability Statement is free from material misstatement, whether due to fraud or
error, and to issue a limited assurance report that includes our conclusion. Misstatements can arise
from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence decisions of users taken on the basis of the Sustainability
Statement as a whole.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
178
As part of a limited assurance engagement in accordance with ISAE (Ireland) 3000 we exercise
professional judgement and maintain professional scepticism throughout the engagement. Our
responsibilities in respect of the Sustainability Statement, in relation to the Process, include:
•
Obtaining an understanding of the Process, but not for the purpose of providing a conclusion on
the effectiveness of the Process, including the outcome of the Process;
•
Considering whether the information identified addresses the applicable disclosure requirements of
the ESRS; and
•
Designing and performing procedures to evaluate whether the Process is consistent with the
Group’s description of its Process set out in section ‘Double Materiality Assessment Process’ on
page 119 to page 125.
Our other responsibilities in respect of the Sustainability Statement include:
•
Identifying where material misstatements are likely to arise, whether due to fraud or error; and
•
Designing and performing procedures responsive to where material misstatements are likely to
arise in the Sustainability Statement. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
Summary of the work performed
A limited assurance engagement involves performing procedures to obtain evidence about the
Sustainability Statement. The procedures in a limited assurance engagement vary in nature and timing
from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of
assurance obtained in a limited assurance engagement is substantially lower than the assurance that
would have been obtained had a reasonable assurance engagement been performed.
The nature, timing and extent of procedures selected depend on professional judgement, including the
identification of disclosures where material misstatements are likely to arise in the Sustainability
Statement, whether due to fraud or error.
In conducting our limited assurance engagement, with respect to the Process, we:
•
Obtained an understanding of the Process by performing inquiries to understand the sources of the
information used by management (e.g., stakeholder engagement, business plans and strategy
documents) and reviewing the Group’s internal documentation of its Process; and
•
Evaluated whether the evidence obtained from our procedures with respect to the Process
implemented by the Group was consistent with the description of the Process set out in section
‘Double Materiality Assessment Process’ on page 119 to page 125.
In conducting our limited assurance engagement, with respect to the Sustainability Statement, we:
•
Obtained an understanding of the Group’s reporting processes relevant to the preparation of its
Sustainability Statement by obtaining an understanding of the Group’s control environment,
processes and information systems relevant to the preparation of the Sustainability Statement, but
not for the purpose of providing a conclusion on the effectiveness of the Group’s internal control;
•
Evaluated whether the information identified by the Process is included in the Sustainability
Statement;
•
Evaluated whether the structure and the presentation of the Sustainability Statement is in
accordance with the ESRS;
•
Performed substantive assurance procedures on selected information in the Sustainability
Statement;
•
Performed inquiries of relevant personnel on selected information in the Sustainability Statement;
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
179
•
Where applicable, compared disclosures in the Sustainability Statement with the corresponding
disclosures in the Financial Statements and Report of the Directors;
•
Evaluated the methods assumptions and data for developing estimates and forward-looking
information; and
•
Obtained an understanding of the Group’s process to identify taxonomy-eligible and taxonomy-
aligned economic activities and the corresponding disclosures in the Sustainability Statement.
Other Matter – Compliance with the requirement to mark-up the Sustainability Statement
Section 1613(3)(c) of the Companies Act 2014 requires us to report on the compliance by the Group
with the requirement to mark-up the Sustainability Statement in accordance with Section 1600 of that
Act. Section 1600 of the Companies Act 2014 requires that the Directors’ Report is prepared in the
electronic reporting format specified in Article 3 of Delegated Regulation (EU) 2019/815 and shall
mark-up the Sustainability Statement. However, at the time of issuing our limited assurance report,
the electronic reporting format has not been specified nor become effective by Delegated Regulation.
Consequently, the Group is not required to mark-up the Sustainability Statement. Our conclusion is not
modified in respect of this matter.
Other Matter - References to external sources or websites
The references to external sources or websites in the Sustainability Statement are not part of the
Sustainability Statement and therefore are not within the scope of our limited assurance engagement.
Other Matter- Comparative Information
The comparative information included in the Sustainability Statement of the Group as at 31 December
2023 and for the year then ended was not subject to an assurance engagement. Our conclusion is not
modified in respect of this matter.
Use of this report
Our report is made solely in accordance with Section 1613 of the Companies Act 2014 to the Directors
of the Group.
Our assurance work has been undertaken so that we might state to the Directors those matters we
are required to state to them in a limited assurance report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone other than the Group
and its Directors, as a body, for our limited assurance work, for this report, or for the conclusions we
have formed.
Padraig Osborne
for and on behalf of PricewaterhouseCoopers
Chartered Accountants and Statutory Audit Firm
Dublin
6 March 2025
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
180
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
181
Additional support provided by FBD and its
partners to the Agricultural and Wider
Communities
FBD supporting the Agricultural Community
For over 50 years FBD has been invested in agriculture,
farming and rural life in Ireland. We believe farmers,
businesses, retail customers and wider society feel real
economic and social benefits as a result of our business
activities. As a Group that has been providing insurance
for Irish farmers for more than 50 years, we are uniquely
placed to support Irish farmers and the agricultural
industry in Ireland. Our sponsorships and initiatives
reflect our brand promise of support, reinforcing our
commitment to farmers and their communities while
offering us the opportunity for meaningful customer
engagement
The FBD Trust
FBD Trust CLG ("FBD Trust”) was established over fifty
years ago to advance the interests of farm families and
the Agricultural sector generally in Ireland with income
generated from shares in FBD allocated by the original
farmer investors in the Group. This support is given
primarily through financing research, educational
scholarships, training and development and support of
groups and organisations representing and advocating
effectively for Irish Agriculture and rural communities.
Since 1975, FBD Trust has been a company limited by
guarantee, which does not have shareholders, but
whose members’ liability is limited to the nominal
amount of the guarantee given by them. FBD Trust
derives its income primarily from its interests in the
Group.
FBD Trust is proud to partner with FBD to support a
wide range of research, educational and social initiatives
and knowledge transfer which benefit rural communities,
Irish farmers, and the food industry. FBD Trust’s
philanthropic objectives are directed towards
strengthening the competitiveness, environmental
sustainability and profitability of Irish agriculture.
FBD Trust contributes approximately €2 million annually
to projects which include:
Teagasc / FBD Student of the Year Awards
Teagasc / FBD Student of the Year awards are
presented to the highest achieving graduates of the
previous year from Teagasc agricultural colleges across
the country. Nominees for these awards are the next
generation of farm leaders and innovators. FBD has
supported the Student of the Year Awards since their
inception by providing a bursary to the winner, category
winners and finalists.
2023 Teagasc Student of the Year, Danny Doyle, pictured with
Frank O’Mara (Director of Teagasc), Maureen O'Meara (FBD), Liam
Herlihy (FBD) Charlie McConalogue TD (former Minister for
Agriculture, Food and the Marine),Michael Berkery (FBD Trust).
Anne-Marie Butler (Head of Education, Teagasc) and John Cahalan
(FBD).
Nuffield Scholarships
Nuffield Ireland is part of Nuffield International, a global
network which includes organisations in eight countries.
The Nuffield Farming Scholarship is a leadership
development programme, in which scholars are given a
bursary to travel, research and present a report on their
chosen topic. Nuffield Ireland identifies future leaders in
the Irish agricultural sector and supports them to reach
their full potential through scholarships, international
travel, and global connections. Nuffield Ireland’s Annual
Conference features panel discussions from industry
experts along with presentations from graduating
scholars. FBD supports both the Nuffield scholarship
fund and the Nuffield conference to promote excellence
by developing and supporting these individuals.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
182
2023 Teagasc Student of the Year, Danny Doyle,
pictured with Frank O’Mara (Director of Teagasc),
Maureen O'Meara (FBD), Liam Herlihy (FBD) Charlie
McConalogue TD (former Minister for Agriculture,
Food and the Marine),Michael Berkery (FBD Trust).
Anne-Marie Butler (Head of Education, Teagasc) and
John Cahalan (FBD).
Nuffield Scholars Thomas Murray, Liagh Whelehan, David
Fennelly, Bryan Daniels, Gillian Willis and Margaret Edgill
pictured with Joe Leonard (Nuffield Ireland Chairman) and
Michael Berkery (FBD Trust Chairman) pictured at the Nuffield
Ireland conference held at Mount Wolseley Hotel, Tullow, Co.
Carlow.
ASA Conference Partner & ASA Fellowship
The Agricultural Science Association (ASA) is the
professional body for graduates in agricultural,
horticultural, forestry, environmental and food science. It
is the voice of the Agricultural profession in Ireland. FBD
has been the ASA conference partner for many years
and in 2024 also sponsored their Resilient Industry:
Adapting to Change event which was held in honour of
International Women’s Day.
The FBD Young Farmer of the Year Awards
The FBD Young Farmer of the Year is a national
competition held in conjunction with Macra. The purpose
of these awards is to identify and recognise young
farmer excellence and to inspire and empower the next
generation of young farmers in Ireland. The awards
recognises top-performing young farmers. It promotes
knowledge-sharing and networking and it provides a
platform to showcase and highlight Irish agriculture and
the fantastic work being done by young farmers.
Adjudication is based on several criteria including
business initiative, sustainability and innovation on the
farm alongside enterprise quality, farm safety,
environmental protection awareness, agricultural
knowledge and community involvement. The 2024 FBD
Young Farmer of the Year is Christopher Cahill from Co.
Cavan..
FBD Young Farmer of the Year, Christopher Cahill, pictured at
the awards ceremony with Liam Herlihy (FBD), Francie Gorman
(IFA president), Elaine Houlihan (Macra President) and Tomás Ó
Midheach (FBD).
Women & Agriculture
FBD is the main sponsor of the annual ‘Women &
Agriculture Conference’. This conference celebrates the
role of women in agriculture while highlighting gender
issues in farming and the agri-food sector. It
acknowledges the essential role that women play on
farms across the country and more widely in the Agri
sector as a whole. The conference provides an important
opportunity for engagement, networking and knowledge
sharing.
Patricia O'Halloran (Head of Sales) speaking at the Women &
Agriculture conference 2024
The Burren Winterage Weekend
At the end of summer, Burren farmers follow the ancient
tradition of herding their cattle onto ‘Winterage’
pastures. These cattle spend the Winter grazing in the
Burren’s limestone uplands and this practice is key to
the survival of the region’s famous flora and fauna. The
Burren Winterage Weekend is a celebration of this
tradition of Winterage and includes a wide range of
farming, heritage, cultural and family events around the
October Bank Holiday weekend each year. The Burren
Winterage School is held as part of the Winterage
weekend and it aims to unite farmers, researchers,
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
183
advisors and government representatives to share ideas
on sustainable pastoral land management.
The annual Burrenbeo Winterage Weekend, supported
by FBD, celebrates not only the unique farming
traditions of the Burren, but also highlights, celebrates
and supports the broader significance of pastoral
farming in shaping much of the Irish landscape.
Patron Member of Agri Aware
A founding member of Agri Aware, FBD was one of a
number of agri-businesses that recognised the need for
an independent body to provide the general public with
information and education on the importance of
agriculture and the food industry to the Irish economy.
FBD’s annual support assists Agri Aware in continuing its
programme of educational and public awareness
initiatives among the non-farming community. Topics
include modern agriculture, the rural environment,
animal welfare, food quality and safety.
Grass10 – Grassland Excellence for Irish
Livestock
Working in partnership with Teagasc, the ‘Grass10’
programme aims to increase grass utilisation on Irish
livestock farms along with ambitious targets. Achieving
‘Grass10’ targets will require changes in farm practices
associated with both grass production and utilisation,
delivering best practice, and promoting sustainable
agricultural methods.
AHI CellCheck Awards
The annual Animal Health Ireland CellCheck Milking for
Quality awards has been sponsored by FBD since they
were established in 2014. The purpose of the CellCheck
Awards is to recognise and reward farmers who have
demonstrated excellence in the field of dairy herd
health management. Awards recognise farmers who
have implemented best practices in herd health
management, such as cell counting, and achieved
excellent herd health and milk production results.
The CellCheck Award is given to the 500 milk suppliers
nationally with the lowest weighted annual average
Somatic Cell Count (SCC) for the previous year’s supply.
The winners were honoured at the awards ceremony
which was held in Killashee Hotel in November 2024.
Patrick & Ann Campion (CellCheck Champions) pictured with
Kevin McConnell (CEO Animal Health Ireland), Michael Berkery
(FBD Trust Chairman), John Cahalan (FBD Insurance CCO), John
Martin (Centenary Thurles Co-Op) and James Lynch (Chairman,
Animal Health Ireland) .
Make the Moove / UCD Agri Mental Health
Group
Make the Moove is a charity founded by Macra
members in North Tipperary in 2018 to address the rise
in the levels of self-harm and suicide amongst farmers
and other rural dwellers. This initiative has been
bolstered by support from UCD Agri Mental Health
Group whose empirical research released in October
2022 found that almost 25% of farmers surveyed were
in danger of suicide.
FBD recognised Make the Moove and UCD's common
purpose to support the area of mental health and
brought them together to further their combined work
through knowledge and resource sharing.
Patricia O’Halloran (FBD), Conor Holohan (Make the Moove
Programme Director), Michael Berkery (FBD Trust Chairman),
Elaine Houihan (Macra President), Tomás Russell (UCD) pictured
at the 2024 national ploughing championship.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
184
University Research & Support - At home and
abroad
FBD offers a wide range of supports and grants to
universities including academic positions and agri-
related organisations and events. Recent academic
sponsorships include Sustainable Soil research in UCC,
UCD Farm Safety Awards and FBD Trust Overall Student
of the Year Award at UCC 2024 Conferring Ceremony.
FBD Holdings plc and FBD Trust have pledged a
philanthropic contribution in support of a new research
and teaching facility at UCD Lyons Farm. The ‘UCD FBD
Agricultural Science Centre’ will enhance UCD’s ability
to deliver both teaching and research to the highest
international standards. It will provide a centre where
researchers, students, innovators and industry experts
can collaborate on projects aimed at addressing the
most pressing challenges facing modern farming and
agriculture.
FBD Better Farming Awards
These awards aim to identify the highest levels of
achievement made in the industry’s move towards a
more sustainable sector and to reward initiatives,
research and practices that are helping Irish agriculture
meet its economic, social and environmental challenges.
The award categories included a mix from across the
Agri industry, food producers and farmers.
Tom and Kathy Barry were named winners of the FBD
Insurance Overall Better Farming Award.
Kathy & Tom Barry overall winners of FBD Insurance Better
Farming Awards, pictured with Liam Herlihy (FBD Insurance
Chairman), Emer O’Byrne and Maureen O’Meara (FBD)
University Research & Support - At home and
abroad
The inaugural Teagasc FBD Environmental Sustainability
Awards were held in October 2024. The competition
was established to promote environmentally sustainable
farming practices and highlight the progress that Irish
farmers are making in their efforts to work with nature
while continuing to produce high-quality, nutritious food
in a profitable manner. Five enterprise awards and four
category awards were presented. The overall winners at
the awards were father and son partnership John &
Brendan Walsh from Co. Tipperary.
Teagasc FBD Environmental Sustainability
Awards
The inaugural Teagasc FBD Environmental Sustainability
Awards were held in October 2024. The competition
was established to promote environmentally sustainable
farming practices and highlight the progress that Irish
farmers are making in their efforts to work with nature
while continuing to produce high-quality, nutritious food
in a profitable manner. Five enterprise awards and four
category awards were presented. The overall winners at
the awards were father and son partnership John &
Brendan Walsh from Co. Tipperary.
John and Brendan Walsh overall winners of the inaugural
Teagasc/FBD Environmental Sustainability Awards pictured
receiving their award from Laura Burke (Director of the EPA)
The Padraig Walshe Centre for Sustainable
Animal & Grassland Research
A significant contribution from FBD Holdings plc, FBD
Trust and Farmer Business Developments Plc will
support the development of a new research facility at
Teagasc Moorepark Campus. This new centre will
advance climate-focused research and innovative
solutions for sustainable pasture-based systems. The
facility will work to enhance Ireland’s ruminant sector by
improving efficiency and helping farmers meet climate
targets, ensuring environmental, economic, and social
sustainability for future generations.
Tractor Training Skills
FBD continues to support the FRS tractor training skills
course for young people over the age of 14, to ensure
that safe driving practices are adopted at an early age.
Irish Show Association (ISA) Safety Seminars
FBD continues to support the ISA by providing Event
Safety Management presentations at their national
regional safety seminars. The seminars are designed to
help the Show Committees, and their Safety Officers
manage safety at the shows they organise.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
185
FBD SUPPORTING THE WIDER COMMUNITY
At the heart of everything we do is a commitment to serving communities,
not just within the farming sector but across the wider localities where we
live and work. With 34 branches nationwide and decades of experience,
we are well positioned to make a meaningful impact. Our sponsorships and
community initiatives are a reflection of our brand promise to support and
strengthen these communities, while helping us build genuine, lasting
connections with our customers.
Guaranteed Irish
FBD is a proud member of the Guaranteed Irish
programme. The Guaranteed Irish symbol is a trusted
mark of distinction, awarded to companies that
demonstrate a steadfast commitment to creating high-
quality jobs, contributing meaningfully to local
communities, and upholding the values of Irish
provenance. This partnership underscores our dedication
to supporting Irish businesses and their needs.
Chambers of Commerce
With 34 branches located around Ireland, FBD is a
committed member of many local Chambers of
Commerce. Working collaboratively with local
businesses, Chambers of Commerce provide a forum to
promote initiatives, knowledge sharing and to assist
local business in communities across Ireland.
SME Support: Big Support for Small Business
Recognising the exceptional challenges small businesses
have faced recently, we wanted to take our ongoing
support of SMEs a step further and create a meaningful
impact by offering a €140,000 combined marketing
support package for seven local businesses. Local
branch managers from our Cork, Waterford, Letterkenny,
Baggot Street, Sligo, Galway, Drumcondra, and Limerick
branches selected businesses representing a diverse
range of industries, including retail, restaurants, pubs,
food, and manufacturing.
These businesses received recognition on Ireland’s
largest billboard in Dublin, as well as on local billboards,
radio, and in press coverage in their counties. Through
this initiative, we aimed to listen to our customer needs
which allowed them to amplify their voices, provide
them with the platform they deserve, and make a real
difference in their business journey..
Ronald McDonald House
FBD is proud to be supporting the Ronald McDonald
House at the new National Children’s Hospital. The
charity provides a "home away from home" for families
with seriously ill children undergoing medical treatment,
easing the emotional and financial strain of travel and
accommodation. By partnering with Ronald McDonald
House, we hope to not only help ensure access to vital
services like warm meals, lodging and emotional support
but also actively contribute to building stronger, more
compassionate communities. This sponsorship reflects a
deep commitment to community well-being, creating
lasting bonds and making a profound difference for
families in need.
GAA Clubs & FBD Semple Stadium
FBD Insurance is proud to support the GAA nationwide.
This partnership reflects FBD’s long-standing
commitment to Irish communities, promoting the values
of teamwork, resilience, and passion that lie at the heart
of Gaelic games.
Our sponsorship of FBD Semple Stadium in Thurles
underscores our dedication to community engagement.
Semple Stadium is more than a venue; it is an iconic
place in Irish culture and a fantastic gathering place for
fans, families, and players who share a love for Gaelic
games.
Through our branch network we support many GAA
clubs nationwide which brings people together, fosters
community pride, and nurtures young talent. We hope
our support contributes to the development of players
and clubs, ensuring the continuation of a rich cultural
tradition that unites people across the country.
Tomas Ó Midheach (FBD CEO) pictured with children of FBD staff
at the Family Fun Day at FBD Semple Stadium .
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
186
Partnerships
To strengthen relationships with key business
customers, we partner with many organisations whose
membership base is made up of our customers, such as
Good Food Ireland, the Restaurants Association of
Ireland and community groups like Men’s Sheds. Through
these partnerships, our commercial experts share
valuable advice and insights by speaking at group
meetings, presenting at conferences, sponsoring awards
and engaging directly with businesses and their
communities.
Grow It Yourself (GIY)
At FBD we have a strong focus on supporting our local
communities. Our branch staff take a personal and
human approach to supporting businesses and local
communities. This is why we are so delighted to be
supporting GIY with the Grow at School Campaign. Our
local branch managers will be connecting directly with
the schools we are supporting to bring this valuable
programme to children in eight schools in counties
across Ireland. This programme is supporting young
people building sustainable food habits that will benefit
themselves, their communities and the future planet
Country Shows
As part of our community focus, we support the Irish
Shows Association and a number of country shows,
most of which are run by local committees on an entirely
voluntary basis. These events play a vital role in
showcasing the Irish food producers and livestock
industry while also serving as vibrant community
gatherings. FBD employees from the closest local branch
attend these shows which provide an important
opportunity for community engagement.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
187
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
188
In this Section
Independent Auditors’ Report
189
Consolidated Income Statement
198
Consolidated Statement of Comprehensive Income
199
Consolidated Statement of Financial Position
200
Consolidated Statement of Cash Flows
202
Consolidated Statement of Changes in Equity
203
Company Statement of Financial Position
204
Company Statement of Cash Flows
205
Company Statement of Changes in Equity
206
Notes to the Financial Statements
207
FINANCIAL
STATEMENTS
FBD BUSINESS INSURANCE CUSTOMER
"It has been very exciting to be asked to
be a part of the FBD campaign. The locals
here in Adare/Limerick have seen the paper
ad and the weekend magazine and have
been very lovely about it all with lots of
congratulatory messages coming in via
Instagram and Facebook. The appointments
are booking in for mid-May and into
June, usually this time of year is quiet
for us. FBD’s support has definitely made
a positive difference to the business."
Ann Stokes Gilvarry
Áibhéil of Adare, Co. Limerick
Independent auditors’ report to the
members of FBD Holdings plc
Report on the audit of the financial
statements
Opinion
In our opinion, FBD Holdings plc’s consolidated financial statements and company financial statements
(the “financial statements”):
•
give a true and fair view of the group’s and the company’s assets, liabilities and financial position as
at 31 December 2024 and of the group’s profit and the group’s and the company’s cash flows for
the year then ended;
•
have been properly prepared in accordance with International Financial Reporting Standards
(“IFRSs”) as adopted by the European Union and, as regards the company’s financial statements, as
applied in accordance with the provisions of the Companies Act 2014; and
•
have been properly prepared in accordance with the requirements of the Companies Act 2014 and,
as regards the consolidated financial statements, Article 4 of the IAS Regulation.
We have audited the financial statements, included within the Annual Report, which comprise:
•
the Consolidated and Company Statements of Financial Position as at 31 December 2024;
•
the Consolidated Income Statement and Consolidated Statement of Comprehensive Income for the
year then ended;
•
the Consolidated and Company Statements of Cash Flows for the year then ended;
•
the Consolidated and Company Statements of Changes in Equity for the year then ended; and
•
the notes to the financial statements, which include a description of the accounting policies.
Certain required disclosures have been presented elsewhere in the Annual Report, rather than in the
notes to the financial statements. These are cross-referenced from the financial statements and are
identified as audited.
Our opinion is consistent with our reporting to the Audit Committee.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (Ireland) (“ISAs
(Ireland)”) and applicable law. Our responsibilities under ISAs (Ireland) are further described in the
Auditors’ responsibilities for the audit of the financial statements section of our report. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Independence
We remained independent of the group in accordance with the ethical requirements that are relevant
to our audit of the financial statements in Ireland, which includes IAASA’s Ethical Standard as
applicable to listed public interest entities, and we have fulfilled our other ethical responsibilities in
accordance with these requirements.
To the best of our knowledge and belief, we declare that non-audit services prohibited by IAASA’s
Ethical Standard were not provided to the group or the company.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
189
Other than those disclosed in note 8 to the financial statements, we have provided no other services
to the group or the company in the period from 1 January 2024 to 31 December 2024.
Our audit approach
Overview
Overall materiality
• €4.4 million (2023: €4.0 million) - Consolidated financial statements
• Based on circa 1% of insurance revenue.
• €1.1 million (2023: €1.0 million) - Company financial statements
• Based on circa 1% of equity attributable to equity holders of the parent.
Performance materiality
• €3.3 million (2023: €3.0 million) - Consolidated financial statements.
• €0.83 million (2023: €0.75 million) - Company financial statements.
Audit scope
• We performed a full scope audit of the complete financial information of
the group's principal operating entity, FBD Insurance plc, and the holding
company. We performed audit procedures on certain balances and
transactions of the group's shared services entity, FBD Corporate
Services Limited.
• Taken together, the entities where we performed a full scope audit of the
complete financial information and those selected balances at the group's
shared services entity on which we performed audit procedures
accounted for in excess of 95% of group revenues, 95% of group profit
before taxation and 95% of the group's total assets.
Key audit matters
• Methodologies and assumptions applied in the valuation of the liability
for incurred claims ("LIC") (Group).
• Recoverability of Investments in Subsidiaries (Company).
The scope of our audit
As part of designing our audit, we determined materiality and assessed the risks of material
misstatement in the financial statements. In particular, we looked at where the directors made
subjective judgements, for example in respect of significant accounting estimates that involved making
assumptions and considering future events that are inherently uncertain. As in all of our audits we also
addressed the risk of management override of internal controls, including evaluating whether there
was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
Key audit matters
Key audit matters are those matters that, in the auditors’ professional judgement, were of most
significance in the audit of the financial statements of the current period and include the most
significant assessed risks of material misstatement (whether or not due to fraud) identified by the
auditors, including those which had the greatest effect on: the overall audit strategy; the allocation of
resources in the audit; and directing the efforts of the engagement team. These matters, and any
comments we make on the results of our procedures thereon, were addressed in the context of our
audit of the financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters. This is not a complete list of all risks identified by our
audit.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
190
Methodologies and assumptions applied in the valuation
of the liability for incurred claims ("LIC") (Group)
Refer to Note 3 (E) (ii) - ‘Summary of material accounting policies -
Insurance contracts – Insurance and reinsurance contracts accounting
treatment’, Note 3 (X) - ‘Summary of material accounting policies - Critical
accounting estimates and judgements in applying accounting policies’,
Note 16 – ‘ Insurance and reinsurance contracts’, and Note 37(g) - Financial
Risk Management - Insurance Risk’ to the consolidated financial statements.
Based on the results of our risk assessment, we selected certain long tail
classes of business for independent valuation of the actuarial best estimate
by PwC actuarial specialists. This involved consideration of key
assumptions including expected loss ratios and the frequency and severity
of claims informed by the group’s historical claims experience and
developments in the Irish claims environment.
The independent estimates by reserving classes were compared to the
group’s valuation of the actuarial best estimate and we understood the
reasoning behind any significant differences.
In respect of other classes of business, we assessed the reasonableness of
the group's actuarial best estimate with the assistance of our actuarial
specialists. This involved:
• Assessing the reasonableness of assumptions and methodologies
underpinning management’s actuarial valuation; and
• Considering the development of prior years estimates and analysis of
current accident year estimate including consideration of the group’s
historical claims experience and developments in the Irish claims
environment for these classes of business.
Based on the results of these procedures we concluded that the valuation
of the actuarial best estimate included within the group’s liability for
incurred claims is reasonable.
We also assessed the appropriateness of the disclosures of the key
methodologies and assumptions as disclosed in the financial statements.
The measurement of LIC comprises:
• an actuarial best estimate of the ultimate settlement cost of claims
incurred at the reporting date including estimates for claims incurred but
not reported (“IBNR”) and events not in data (“ENID”) at 31 December
2024;
• an adjustment to the best estimate cashflows to reflect the time value
of money and the financial risks related to those cash flows, to the
extent that the financial risks are not included in the estimates of cash
flows; and
• a risk adjustment for non-financial risk, reflecting the compensation the
group requires for bearing the uncertainty about the amount and timing
of the cash flows from non-financial risk as the group fulfills insurance
contracts.
The actuarial best estimate is determined using complex actuarial
calculations and requires the consideration of detailed methodologies,
complex assumptions and significant judgements. Long tail lines of
business are generally more difficult to project and subject to greater
uncertainties than short tail, higher frequency claims.
Methodologies and assumptions vary by class of business. The key items
underlying the valuation include past claims development patterns,
assumptions in respect of expected loss ratios and the expected frequency
and severity of claims.
We determined the valuation of the actuarial best estimate to be a key
audit matter due to the judgements and level of estimation involved in the
measurement thereof.
Recoverability of Investments in Subsidiaries (Company)
Refer to Note 3 (C) - ‘Summary of material accounting policies -
Investments in Subsidiaries (Company only)’, and Note 32 - ‘Principal
Subsidiaries’ to the consolidated financial statements.
We considered management’s assessment as to whether there were any
indicators of impairment at year end taking into account the market
capitalisation of the Company.
The company has investments in subsidiaries of €91.8 million at 31
December 2024 which are stated at cost less accumulated impairment.
Based on our procedures we determined that management’s conclusion
that there are no impairment indicators was reasonable.
We determined this to be a key audit matter as investments in subsidiaries
are the principal assets held by the company.
Key audit matter
How our audit addressed the key audit matter
How we tailored the audit scope
We tailored the scope of our audit to ensure that we performed enough work to be able to give an
opinion on the financial statements as a whole, taking into account the structure of the group, the
accounting processes and controls, and the industry in which the group operates.
The group consists of the holding company, FBD Insurance plc (an insurance provider), five other
entities (four of which are non-trading) and a group shared services entity, FBD Corporate Services
Limited. All group entities are managed and reported on from a single head office. The consolidated
financial statements are a consolidation of these individual entities.
On the basis of the group structure all audit procedures were performed by the group audit
engagement team. We performed a full scope audit of the complete financial information of FBD
Insurance plc and the holding company. Specific audit procedures on certain balances and
transactions were performed in respect of FBD Corporate Services Limited. We also tested the
consolidation process. This gave us the desired level of audit evidence for our opinion on the
consolidated financial statements as a whole.
This gave us coverage in excess of 95% of group revenues, 95% of group profit before taxation and
95% of the group's total assets.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
191
Materiality
The scope of our audit was influenced by our application of materiality. We set certain quantitative
thresholds for materiality. These, together with qualitative considerations, helped us to determine the
scope of our audit and the nature, timing and extent of our audit procedures on the individual financial
statement line items and disclosures and in evaluating the effect of misstatements, both individually
and in aggregate on the financial statements as a whole.
Based on our professional judgement, we determined materiality for the financial statements as a
whole as follows:
Consolidated financial statements
Company financial statements
Overall materiality
€4.4 million (2023: €4.0 million).
€1.1 million (2023: €1.0 million).
How we determined it
Circa 1% of insurance revenue.
Circa 1% of equity attributable to equity holders
of the parent.
Rationale for benchmark applied
We have applied this benchmark as it provides a more stable
measure as the group’s result can fluctuate. We also assessed
the appropriateness of this benchmark by reference to other
potential benchmarks and determined the overall materiality
level to be appropriate.
We have applied this benchmark as it is
considered appropriate given the company's
activity as a holding company.
We use performance materiality to reduce to an appropriately low level the probability that the
aggregate of uncorrected and undetected misstatements exceeds overall materiality. Specifically, we
use performance materiality in determining the scope of our audit and the nature and extent of our
testing of account balances, classes of transactions and disclosures, for example in determining
sample sizes. Our performance materiality was 75% of overall materiality, amounting to €3.3 million
(group audit) and €0.83 million (company audit).
In determining the performance materiality, we considered a number of factors - the history of
misstatements, risk assessment and aggregation risk and the effectiveness of controls - and concluded
that an amount at the upper end of our normal range was appropriate.
We agreed with the Audit Committee that we would report to them misstatements identified during
our audit above €220,000 (group audit) (2023: €200,000) and €55,000 (company audit) (2023:
€50,000) as well as misstatements below that amount that, in our view, warranted reporting for
qualitative reasons.
Conclusions relating to going concern
Our evaluation of the directors’ assessment of the group and company’s ability to continue to adopt
the going concern basis of accounting included:
•
evaluating management’s going concern assessment and underlying forecasts for the period of the
going concern assessment (being the period of 12 months from the date on which the financial
statements are authorised for issue);
•
testing the mathematical integrity of the forecasts and the models, and reconciling these to Board
approved budgets;
•
considering the projected solvency position of FBD Insurance plc under a number of stress
scenarios set out in the group’s Own Risk and Solvency Assessment and comparing these to the
group's regulatory solvency capital requirement; and
•
considering the group’s liquidity position for the period of assessment.
Based on the work we have performed, we have not identified any material uncertainties relating to
events or conditions that, individually or collectively, may cast significant doubt on the group’s or the
company’s ability to continue as a going concern for a period of at least twelve months from the date
on which the financial statements are authorised for issue.
In auditing the financial statements, we have concluded that the directors’ use of the going concern
basis of accounting in the preparation of the financial statements is appropriate.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
192
However, because not all future events or conditions can be predicted, this conclusion is not a
guarantee as to the group’s or the company’s ability to continue as a going concern.
In relation to the company’s reporting on how they have applied the UK Corporate Governance Code,
we have nothing material to add or draw attention to in relation to the directors’ statement in the
financial statements about whether the directors considered it appropriate to adopt the going concern
basis of accounting.
We are required to report if the directors’ statement relating to going concern in accordance with the
Listing Rules for Euronext Dublin is materially inconsistent with our knowledge obtained in the audit.
We have nothing to report in respect of this responsibility.
Our responsibilities and the responsibilities of the directors with respect to going concern are
described in the relevant sections of this report.
Reporting on other information
The other information comprises all of the information in the Annual Report other than the financial
statements and our auditors’ report thereon. The directors are responsible for the other information.
Our opinion on the financial statements does not cover the other information and, accordingly, we do
not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any
form of assurance thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially
misstated. If we identify an apparent material inconsistency or material misstatement, we are required
to perform procedures to conclude whether there is a material misstatement of the financial
statements or a material misstatement of the other information. If, based on the work we have
performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report based on these responsibilities.
With respect to the Report of the Directors, we also considered whether the disclosures required by
the Companies Act 2014 (excluding the information included in the “Non Financial Statement” and the
sustainability reporting required by that Act on which we are not required to report) have been
included.
Based on the responsibilities described above and our work undertaken in the course of the audit, ISAs
(Ireland) and the Companies Act 2014 require us to also report certain opinions and matters as
described below.
•
In our opinion, based on the work undertaken in the course of the audit, the information given in
the Report of the Directors (excluding the information included in the “Non Financial Statement”
and the sustainability reporting on which we are not required to report) for the year ended 31
December 2024 is consistent with the financial statements and has been prepared in accordance
with the applicable legal requirements.
•
Based on our knowledge and understanding of the group and company and their environment
obtained in the course of the audit, we did not identify any material misstatements in the Report of
the Directors (excluding the information included in the “Non Financial Statement” and the
sustainability reporting on which we are not required to report).
•
In our opinion, based on the work undertaken in the course of the audit of the financial statements,
–
the description of the main features of the internal control and risk management systems in
relation to the financial reporting process; and
–
the information required by Section 1373(2)(d) of the Companies Act 2014; included in the
Corporate Governance Statement, is consistent with the financial statements and has been
prepared in accordance with section 1373(2) of the Companies Act 2014.
•
Based on our knowledge and understanding of the company and its environment obtained in the
course of the audit of the financial statements, we have not identified material misstatements in
the description of the main features of the internal control and risk management systems in
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
193
relation to the financial reporting process and the information required by section 1373(2)(d) of the
Companies Act 2014 included in the Corporate Governance Statement.
•
In our opinion, based on the work undertaken during the course of the audit of the financial
statements, the information required by section 1373(2)(a),(b),(e) and (f) of the Companies Act
2014 and regulation 6 of the European Union (Disclosure of Non-Financial and Diversity Information
by certain large undertakings and groups) Regulations 2017 is contained in the Corporate
Governance Statement.
Corporate Governance Statement
The Listing Rules and ISAs (Ireland) require us to review the directors’ statements in relation to going
concern, longer-term viability and that part of the Corporate Governance Statement relating to the
company’s compliance with the provisions of the UK Corporate Governance Code and the Irish
Corporate Governance Annex (the “Code”) specified for our review. Our additional responsibilities with
respect to the Corporate Governance Statement as other information are described in the Reporting
on other information section of this report.
Based on the work undertaken as part of our audit, we have concluded that each of the following
elements of the Corporate Governance Statement is materially consistent with the financial
statements and our knowledge obtained during the audit and we have nothing material to add or draw
attention to in relation to:
•
The directors’ confirmation that they have carried out a robust assessment of the emerging and
principal risks;
•
The disclosures in the Annual Report that describe those principal risks, what procedures are in
place to identify emerging risks and an explanation of how these are being managed or mitigated;
•
The directors’ statement in the financial statements about whether they considered it appropriate
to adopt the going concern basis of accounting in preparing them, and their identification of any
material uncertainties to the group’s and company’s ability to continue to do so over a period of at
least twelve months from the date of approval of the financial statements;
•
The directors’ explanation as to their assessment of the group’s and company’s prospects, the
period this assessment covers and why the period is appropriate; and
•
The directors’ statement as to whether they have a reasonable expectation that the company will
be able to continue in operation and meet its liabilities as they fall due over the period of its
assessment, including any related disclosures drawing attention to any necessary qualifications or
assumptions.
Our review of the directors’ statement regarding the longer-term viability of the group was
substantially less in scope than an audit and only consisted of making inquiries and considering the
directors’ process supporting their statement; checking that the statement is in alignment with the
relevant provisions of the UK Corporate Governance Code; and considering whether the statement is
consistent with the financial statements and our knowledge and understanding of the group and
company and their environment obtained in the course of the audit.
In addition, based on the work undertaken as part of our audit, we have concluded that each of the
following elements of the Corporate Governance Statement is materially consistent with the financial
statements and our knowledge obtained during the audit:
•The directors’ statement that they consider the Annual Report, taken as a whole, is fair, balanced
and understandable, and provides the information necessary for the members to assess the group’s
and company’s position, performance, business model and strategy;
•The section of the Annual Report that describes the review of effectiveness of risk management and
internal control systems; and
•The section of the Annual Report describing the work of the Audit Committee.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
194
We have nothing to report in respect of our responsibility to report when the directors’ statement
relating to the company’s compliance with the Code does not properly disclose a departure from a
relevant provision of the Code specified under the Listing Rules for review by the auditors.
Responsibilities for the financial statements and the audit
Responsibilities of the directors for the financial statements
As explained more fully in the Directors’ Responsibilities Statement, the directors are responsible for
the preparation of the financial statements in accordance with the applicable framework and for being
satisfied that they give a true and fair view.
The directors are also responsible for such internal control as they determine is necessary to enable
the preparation of financial statements that are free from material misstatement, whether due to fraud
or error.
In preparing the financial statements, the directors are responsible for assessing the group’s and the
company’s ability to continue as a going concern, disclosing as applicable, matters related to going
concern and using the going concern basis of accounting unless the directors either intend to liquidate
the group or the company or to cease operations, or have no realistic alternative but to do so.
Auditors’ responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with ISAs (Ireland) will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design
procedures in line with our responsibilities, outlined above, to detect material misstatements in
respect of irregularities, including fraud. The extent to which our procedures are capable of detecting
irregularities, including fraud, is detailed below.
Based on our understanding of the group and industry, we identified that the principal risks of non-
compliance with laws and regulations related to breaches of Irish insurance laws and regulations and
in particular the Solvency II Regulations, and we considered the extent to which non-compliance might
have a material effect on the financial statements. We also considered those laws and regulations that
have a direct impact on the preparation of the financial statements such as the Companies Act 2014.
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial
statements (including the risk of override of controls), and determined that the principal risk related to
management bias in accounting estimates and judgemental areas of the financial statements. Audit
procedures performed by the engagement team included:
•
Discussions with the Audit Committee, management and internal audit, including consideration of
whether there are known or suspected instances of non-compliance with laws and regulation and
fraud;
•
Inspecting relevant correspondence with the Central Bank of Ireland (‘CBI’), including those in
relation to compliance with laws and regulations;
•
Reading relevant meeting minutes including those of the Board, Audit Committee and Board Risk
Committee;
•
Challenging assumptions made by management in accounting estimates and judgements, in
particular in relation to the valuation of the liability for incurred claims as described in the related
key audit matter;
•
Identifying and testing journal entries based on risk criteria; and
•
Designing audit procedures to incorporate unpredictability in our testing.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
195
There are inherent limitations in the audit procedures described above. We are less likely to become
aware of instances of non-compliance with laws and regulations that are not closely related to events
and transactions reflected in the financial statements. Also, the risk of not detecting a material
misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud
may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or
through collusion.
Our audit testing might include testing complete populations of certain transactions and balances,
possibly using data auditing techniques. However, it typically involves selecting a limited number of
items for testing, rather than testing complete populations. We will often seek to target particular
items for testing based on their size or risk characteristics. In other cases, we will use audit sampling
to enable us to draw a conclusion about the population from which the sample is selected.
A further description of our responsibilities for the audit of the financial statements is located on the
IAASA website at:
https://www.iaasa.ie/getmedia/b2389013-1cf6-458b-9b8f-a98202dc9c3a/
Description_of_auditors_responsibilities_for_audit.pdf
This description forms part of our auditors’ report.
Use of this report
This report, including the opinions, has been prepared for and only for the company’s members as a
body in accordance with section 391 of the Companies Act 2014 and for no other purpose. We do not,
in giving these opinions, accept or assume responsibility for any other purpose or to any other person
to whom this report is shown or into whose hands it may come save where expressly agreed by our
prior consent in writing.
Other required reporting
Companies Act 2014 opinions on other matters
•
We have obtained all the information and explanations which we consider necessary for the
purposes of our audit.
•
In our opinion the accounting records of the company were sufficient to permit the company
financial statements to be readily and properly audited.
•
The Company Statement of Financial Position is in agreement with the accounting records.
Other exception reporting
Directors’ remuneration and transactions
Under the Companies Act 2014 we are required to report to you if, in our opinion, the disclosures of
directors’ remuneration and transactions specified by sections 305 to 312 of that Act have not been
made. We have no exceptions to report arising from this responsibility.
We are required by the Listing Rules to review the six specified elements of disclosures in the report
to shareholders by the Board on directors’ remuneration. We have no exceptions to report arising from
this responsibility.
Prior financial year Non Financial Statement
We are required to report if the company has not provided the information required by Regulation 5(2)
to 5(7) of the European Union (Disclosure of Non-Financial and Diversity Information by certain large
undertakings and groups) Regulations 2017 in respect of the prior financial year. We have nothing to
report arising from this responsibility.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
196
Prior financial year Remuneration Report
We are required to report if the company has not provided the information required by Section 1110N
of the Companies Act 2014 in respect of the prior financial year. We have nothing to report arising
from this responsibility.
Appointment
We were appointed by the directors on 10 August 2016 to audit the financial statements for the year
ended 31 December 2016 and subsequent financial periods. The period of total uninterrupted
engagement is 9 years, covering the years ended 31 December 2016 to 31 December 2024.
Padraig Osborne
for and on behalf of PricewaterhouseCoopers
Chartered Accountants and Statutory Audit Firm
Dublin
6 March 2025
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
197
Consolidated Income Statement
For the financial year ended 31 December 2024
2024
2023
Note
€000s
€000s
Insurance revenue
4(a)
441,005
401,026
Insurance service expenses
4(c)
(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
4(a)
(51,453)
(64,666)
Insurance service result
4(a)
111,100
126,308
Total investment return
5
26,087
19,094
Finance expense from insurance contracts issued
6
(7,459)
(4,160)
Finance income from reinsurance contracts held
6
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
4(c)
(37,804)
(34,018)
Other provision charges
25
(6,695)
(18,331)
Revenue from contracts with customers
4(a)
3,667
2,468
Financial services income and expenses
4(a)
(10,600)
(6,933)
Revaluation/(Impairment) of property, plant and equipment
4(a)
100
(1,708)
Profit before taxation
77,065
81,410
Income taxation charge
10
(9,860)
(11,869)
Profit for the period
67,205
69,541
Attributable to:
Equity holders of the parent
67,205
69,541
Earnings per share
2024
2023
Note
Cent
Cent
Basic
12
186
194
Diluted1
12
183
190
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 accompanying notes form an integral part of the financial statements.
The financial statements were approved by the Board and authorised for issue on 6 March 2025.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
198
Consolidated Statement of Comprehensive Income
For the financial year ended 31 December 2024
2024
2023
Note
€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
5
18,426
39,423
Movement transferred to the Consolidated Income Statement on disposal during the
period
5
605
1,969
Finance expense from insurance contracts issued
6
(6,197)
(17,253)
Finance income from reinsurance contracts held
6
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
17 (d)
(699)
(1,608)
Revaluation/(Impairment) of owner occupied property
22
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
The accompanying notes form an integral part of the financial statements.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
199
Consolidated Statement of Financial Position
At 31 December 2024
2024
2023
Note
€000s
€000s
Assets
Cash and cash equivalents
13
152,320
142,399
Equity and debt instruments at fair value through profit or loss
14
132,767
161,178
Debt instruments at fair value through Other Comprehensive Income
14
891,956
855,989
Deposits
—
2,885
Investment assets
1,024,723
1,020,052
Other receivables
15
22,631
17,150
Loans
386
478
Reinsurance contract assets
16
75,096
97,520
Retirement benefit surplus
17
6,393
7,044
Intangible assets
18
36,789
27,735
Policy administration system
19
10,750
17,926
Investment property
20
11,300
11,953
Right of use assets
21
2,741
3,503
Property, plant and equipment
22
23,139
20,821
Deferred taxation asset
23
—
493
Total assets
1,366,268
1,367,074
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
200
At 31 December 2024
2024
2023
Note
€000s
€000s
Liabilities
Current taxation liabilities
1,429
2,230
Other payables
24(a)
43,066
35,852
Other provisions
25(a)
14,398
20,083
Reinsurance contract liabilities
16
73
480
Insurance contract liabilities
16
767,779
774,921
Lease liabilities
21
3,056
3,828
Subordinated debt
26
49,780
49,721
Deferred taxation liabilities
23
560
—
Total liabilities
880,141
887,115
Equity
Called up share capital presented as equity
27
21,768
21,744
Capital reserves
28(a)
27,932
34,479
Retained earnings
445,263
444,617
Other reserves
29
(11,759)
(23,804)
Shareholders' funds - equity interests
483,204
477,036
Preference share capital
30
2,923
2,923
Total equity
486,127
479,959
Total liabilities and equity
1,366,268
1,367,074
The accompanying notes form an integral part of the financial statements.
The financial statements were approved by the Board and authorised for issue on 6 March 2025.
They were signed on its behalf by:
Liam Herlihy
Tomás Ó Midheach
Chairman
Group Chief Executive Officer
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
201
Consolidated Statement of Financial Position (continued)
Consolidated Statement of Cash Flows
For the financial year ended 31 December 2024
2024
2023
Note
€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
18, 19, 22
15,287
12,012
Depreciation on right of use assets
21
762
787
Fair value movement on investment property
20
600
3,099
(Revaluation)/Impairment of property, plant and equipment
22
(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
25
(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 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
37(d)
(126,185)
(135,372)
Sale of investments classified as FVOCI
37(d)
107,791
151,277
Purchase of property, plant and equipment
22
(4,606)
(2,188)
Additions to policy administration system
19
—
(1,401)
Sale of investment property
20
53
—
Purchase of intangible assets
18
(14,772)
(16,186)
Maturities of deposits invested with banks
2,885
10,000
Additional deposits invested with banks
14(a)
—
(2,885)
Net cash generated from / (used in) investing activities
5,165
(12,517)
Cash flows from financing activities
Ordinary and preference dividends paid
31
(72,080)
(72,026)
Purchase and cancellation of own shares
(4,000)
—
Interest payment on subordinated debt
26
(2,500)
(2,500)
Principal elements of lease payments
21
(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
13
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
13
152,320
142,399
.The accompanying notes form an integral part of the financial statements.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
202
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
1In 2023 and 2024 new ordinary shares were allotted to employees of FBD Holdings plc as part of the performance share awards scheme.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
203
Company Statement of Financial Position
At 31 December 2024
2024
2023
Note
€000s
€000s
Assets
Investments
Investment in subsidiaries
32
91,832
91,831
Financial assets
1
1
91,833
91,832
Cash and cash equivalents
15,833
11,072
Retirement benefit surplus
1,386
1,549
Other receivables
5,581
4,781
Total assets
114,633
109,234
Equity and liabilities
Equity
Called up share capital presented as equity
27
21,768
21,744
Capital reserves
28(b)
27,932
34,479
Retained earnings
54,732
44,593
Shareholders’ funds – equity interests
104,432
100,816
Preference share capital
30
2,923
2,923
Equity attributable to equity holders of the parent
107,355
103,739
Liabilities
Other provisions
25(b)
—
2,500
Other payables
24(b)
7,105
2,801
Deferred taxation liability
173
194
Total equity and liabilities
114,633
109,234
The profit attributable to shareholders in the financial statements of the holding company for the year
ended 31 December 2024 was €74,549,000 (2023: €69,096,000). As permitted by Section 304 of the
Companies Act 2014, the Income Statement of the Company has not been separately presented in
these financial statements.
The accompanying notes form an integral part of the financial statements.
The financial statements were approved by the Board and authorised for issue on 6 March 2025.
They were signed on its behalf by:
Liam Herlihy
Tomás Ó Midheach
Chairman
Group Chief Executive Officer
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
204
Company Statement of Cash Flow
For the financial year ended 31 December 2024
2024
2023
€000s
€000s
Cash flows from operating activities
Profit before taxation
74,132
68,683
Adjustments for:
Share-based payment expense
3,610
4,350
Operating cash flows before movement in working capital
77,742
73,033
Movement on receivables
(379)
1,889
Movement on payables
1,769
2,649
Net cash generated from operating activities
79,132
77,571
Net cash generated from investing activities
—
—
Cash flows from financing activities
Ordinary and preference dividends paid
(72,080)
(72,026)
Purchase of own shares
(4,000)
—
Proceeds of re-issue of ordinary shares
1,709
—
Net cash used in financing activities
(74,371)
(72,026)
Net increase in cash and cash equivalents
4,761
5,545
Cash and cash equivalents at the beginning of the financial year
11,072
5,527
Cash and cash equivalents at the end of the financial year
15,833
11,072
The accompanying notes form an integral part of the financial statements.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
205
Company Statement of Changes in Equity
For the financial year ended 31 December 2024
Called up
share capital
presented as
equity
Capital
reserves
Retained
earnings
Attributable
to ordinary
shareholders
Preference
share capital
Total equity
€000s
€000s
€000s
€000s
€000s
€000s
Balance at 1 January 2023
21,583
30,192
48,069
99,844
2,923
102,767
Profit after taxation
—
—
69,096
69,096
—
69,096
Other comprehensive
expense after taxation
—
—
(448)
(448)
—
(448)
Total comprehensive
income for the year
—
—
68,648
68,648
—
68,648
Issue of ordinary shares1
161
1,647
(98)
1,710
—
1,710
Dividends paid and approved
on ordinary and preference
shares
—
—
(72,026)
(72,026)
—
(72,026)
Recognition of share-based
payments
—
2,640
—
2,640
—
2,640
Balance at 31 December
2023
21,744
34,479
44,593
100,816
2,923
103,739
Balance at 1 January 2024
21,744
34,479
44,593
100,816
2,923
103,739
Profit after taxation
—
74,549
74,549
—
74,549
Other comprehensive
expense after taxation
—
—
(172)
(172)
—
(172)
Total comprehensive
income for the year
—
—
74,377
74,377
—
74,377
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
(155)
1,709
—
1,709
Dividends paid and approved
on ordinary and preference
shares
—
—
(72,080)
(72,080)
—
(72,080)
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
54,732
104,432
2,923
107,355
1In 2023 and 2024 new ordinary shares were allotted to employees of FBD Holdings plc as part of the performance share awards scheme.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
206
Notes to the Financial Statements
1.
GENERAL INFORMATION
FBD Holdings plc is an Irish registered public limited company. The registration number of the company
is 135882. The address of the registered office is FBD House, Bluebell, Dublin 12, Ireland. FBD is one of
Ireland's largest property and casualty insurers, looking after the insurance needs of farmers,
businesses and retail customers. Established in the 1960s by farmers for farmers, FBD has built on
those roots in agriculture to become a leading general insurer serving the needs of its direct
agricultural, business and retail customers throughout Ireland. It has a network of 34 branches
nationwide.
2. GOING CONCERN
The Directors have, at the time of approving the financial statements, satisfied themselves and
consider it appropriate that the Company and the Group is a going concern, and have not identified
any material uncertainties that cast doubt on the Company's and Group's ability to continue as a going
concern over a period of at least 12 months from the 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 Budget 2025 and projections for 2026
which reflect the latest assumptions used by the business, including an allowance for January 2025
weather events. The economic environment may impact on premiums including potential reductions in
exposures, new business and retention levels. Expense assumptions can change depending on the
level of premiums as discretionary spend and resources are adjusted. There were a number of scenario
projections run as part of the ORSA process as well as 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 expenditure as they fall due. The business 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 corporate and
sovereign bonds with an average rating of A-. In 2023, the Group developed an Operational Resilience
Framework and in 2024 the Group further embedded Operational Resilience best practices into the
business.
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 date of this
report. Therefore the Directors continue to adopt the going concern basis of accounting in preparing
the financial statements.
3. SUMMARY OF MATERIAL ACCOUNTING POLICIES
Basis of preparation
The Group and Company financial statements have been prepared in accordance with International
Financial Reporting Standards (“IFRSs”) adopted by the European Union and therefore the Group
financial statements comply with Article 4 of the EU IAS Regulation. The Group and Company financial
statements are prepared in compliance with the Companies Acts 2014.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
207
Consideration of climate change
In preparing the financial statements the Directors have considered the impact of climate change. In
particular, the Directors have considered the impact of climate change in respect of the following
areas:
•
Viability assessment of the Group and future cash flow forecasts;
•
Cash flow forecasts included in the impairment testing on page 226; and
•
Valuation of the investment property on page 256 and property held for own use on pages 258 to
259.
The Directors are aware of the ever-changing risks attached to climate change and will regularly
assess these risks against estimates and judgements made in preparation of the Group’s financial
statements.
Adoption of new and revised International Financial Reporting Standards (“IFRSs”)
Standards adopted during the period
In the current year, the Group has adopted or applied amendments to IFRSs issued by the
International Accounting Standards Board (IASB) that are mandatorily effective for an accounting
period that begins on or after 1 January 2024, unless otherwise stated.
•
Supplier Finance Arrangements (Amendments to IAS 7 & IFRS 7);
•
Lease Liability in a Sale and Leaseback (Amendments to IFRS 16);
•
Classification of Liabilities as Current or Non-Current (Amendments to IAS 1); and
•
Non-current Liabilities with Covenants (Amendments to IAS 1).
The adoption of these new and amended standards did not have a material impact on the FBD Group's
accounting policies, financial position, or performance. Consequently, the FBD Group has not made any
significant changes to its accounting policies or disclosures.
Accounting policies
The principal accounting policies adopted by the Board are detailed below. All accounting policies are
applicable to the consolidated and Company financial statements unless stated otherwise.
A) ACCOUNTING CONVENTION
The consolidated and Company financial statements are prepared under the historical cost convention
as modified by the revaluation of property, investments classified as fair value through profit and loss,
investments classified as fair value through Other Comprehensive Income and investment property,
which are measured at fair value and insurance contracts and reinsurance contracts have been
measured in accordance with accounting policies described in Note 3 E).
B) BASIS OF CONSOLIDATION
The consolidated financial statements include the financial statements of the Company and its
subsidiary undertakings to 31 December. Control is achieved when the Company:
•
has power over the investee;
•
is exposed, or has rights, to variable returns from its involvement with the investee; and
•
has the ability to use its power to affect its returns.
The Company reassesses whether or not it controls an investee if facts and circumstances indicate
that there are changes to one or more of the elements of control listed above.
When the Company has less than a majority of the voting rights of an investee, it has power over an
investee when the voting rights are sufficient to give it the practical ability to direct the relevant
activities of the investee unilaterally. The Company considers all the relevant facts and circumstances
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
208
3 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
in assessing whether or not the Company’s voting rights in an investee are sufficient to give it power,
including:
•
the size of the Company’s holding of voting rights relative to the size and dispersion of holdings of
the other vote holders;
•
potential voting rights held by the Company, other vote holders or other parties;
•
rights arising from other contractual arrangements; and
•
any additional facts and circumstances that indicate that the Company has, or does not have, the
current ability to direct the relevant activities at the time that decisions need to be made,
including voting patterns at previous shareholders’ meetings.
Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and
ceases when the Company loses control of the subsidiary.
Profit or loss and each component of Other Comprehensive Income are attributed to the owners of the
Company and to the non-controlling interests. Total comprehensive income of subsidiaries is
attributed to the owners of the Company and to the non-controlling interests even if this results in the
non-controlling interests having a deficit balance.
All intra-Group transactions, balances, income and expenses are eliminated on consolidation.
Changes in the Group’s ownership interests in subsidiaries that do not result in a loss of control over
the subsidiaries are accounted for as equity transactions. The carrying amount of the Group’s interests
and the non-controlling interests are adjusted to reflect the changes in their relative interests in the
subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted
and the fair value of the consideration paid or received is recognised directly in equity and attributed
to the owners of the Company.
The acquisition of subsidiaries is accounted for using the acquisition method. The cost of the
acquisition is measured as the aggregate of the fair values, at the date of exchange, of assets given,
liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of
the acquiree. Any transaction costs incurred are expensed in the period in which they occur. The
acquiree’s identifiable assets, liabilities and contingent liabilities that meet the conditions for
recognition under IFRS 3 are recognised at their fair value at the acquisition date, except for non-
current assets (or disposal groups), that are classified as held for sale in accordance with IFRS 5, Non
Current Assets Held for Sale and Discontinued Operations, which are recognised and measured at fair
value less costs of sale.
Goodwill arising on acquisition is recognised as an asset and initially measured at cost, being the
excess of the cost of the business combination over the Group’s interest in the net fair value of the
identifiable assets, liabilities and contingent liabilities recognised. If, after reassessment, the Group’s
interest in the net fair value of the acquiree’s identifiable assets, liabilities and contingent liabilities
exceeds the cost of the business combination, the excess is recognised immediately in the
Consolidated Income Statement.
When the Group loses control of a subsidiary, the profit or loss on the sale is calculated as the
difference between (i) the aggregate of the fair value of the consideration received and the fair value
of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), less
liabilities of the subsidiary and any non-controlling interests. Amounts previously recognised in the
Consolidated Statement of Comprehensive Income in relation to the subsidiary are accounted for (i.e.
reclassified to profit or loss or transferred directly to retained earnings) in the same manner as would
be required if the relevant assets or liabilities are disposed of. The fair value of any investment
retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial
recognition for subsequent accounting under IFRS 9 Financial Instruments or, when applicable, costs
on initial recognition of an investment in an associate or jointly controlled entity.
C) INVESTMENTS IN SUBSIDIARIES (Company only)
Investments in subsidiaries are accounted for at cost less accumulated impairment losses. The
Company reviews whether there is any indication of impairment at each reporting date. Impairment
testing involves comparing the carrying amount of the investment to its recoverable amount. The
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
209
3 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
recoverable amount is higher of the fair value less costs of disposal and its value in use. If impairment
occurs, this loss is recognised in the Income Statement.
Dividend income from investments in subsidiaries is recognised when the Company’s right to receive
has been established.
D) REVENUE RECOGNITION
Revenue is measured at fair value of the consideration received or receivable on the following;
•
Insurance revenue – insurance revenue is accounted for in accordance with policy (E).
•
Investment income, included within ‘Total investment return’, is accounted for as per below.
•
Interest income is accrued on a time basis with reference to the principal outstanding at the
effective interest rate applicable.
•
Dividend income from investments is recognised when the shareholders’ rights to receive payment
have been established.
•
Rental income is recognised on a straight-line basis over the period of the lease.
•
‘Revenue from contracts with customers’ comprises broking commission which is recognised as the
Group satisfies its performance obligations. The Group’s performance obligation in relation to
broking commissions is satisfied at the point in time when the underlying policy has been
contractually agreed between the insured and the provider. The transaction price is the expected
commission income receivable by the Group for the satisfaction of this performance obligation. The
transaction price includes a variable consideration estimation on the basis that elements of
commissions receivable are dependent on the outcome of future events, namely the underlying
policies sold remaining in force, and are paid in future periods. Thus, an expected level of lapses is
applied to policies sold in order to calculate an appropriate commission receivable in relation to the
satisfaction of the performance obligation. Variable consideration is only recognised to the extent
that it is highly probable that a significant reversal of revenue would not occur.
E) INSURANCE CONTRACTS
(i) Definition and classification
The Group issues insurance contracts in the normal course of business, under which it accepts
significant insurance risk from its policyholders. As a general guideline, the Group determines whether
it has significant insurance risk by comparing benefits payable after an insured event with benefits
payable if the insured event did not occur. Insurance contracts can also transfer financial risk. The
Group issues non-life insurance to individuals and businesses. Non-life insurance products offered
include Motor, Property, Liability and Personal Accident which are classified into Motor and Non-Motor
for reporting. These products offer protection of policyholder’s assets and indemnification of other
parties that have suffered damage as a result of an insured event occurring.
In the normal course of business, the Group uses reinsurance to mitigate its risk exposures. A
reinsurance contract transfers significant risk if it transfers substantially all the insurance risk resulting
from the insured portion of the underlying insurance contracts, even if it does not expose the reinsurer
to the possibility of a significant loss.
(ii) Insurance and reinsurance contracts accounting treatment
Separating components from insurance and reinsurance contract
Before the Group accounts for an insurance contract based on the guidance of IFRS 17, it assesses
whether the contract contains distinct components which must be accounted for under another IFRS
instead of under IFRS 17. After separating any distinct components, the Group applies IFRS 17 to all
remaining components of the insurance contract. Currently, engineering inspection risk, which is not
material, is the only non-insurance component which forms part of any insurance contracts that
requires unbundling.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
210
3 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
Level of aggregation/Unit of account
The Group manages insurance contracts issued by product lines within an operating segment, where
each product line includes contracts that are subject to similar risks. All insurance contracts within a
product line represent a portfolio of contracts. Each portfolio is further disaggregated into groups of
contracts that are issued within a calendar year (annual cohorts) and are (i) contracts that are onerous
at initial recognition; (ii) contracts that at initial recognition have no significant possibility of becoming
onerous subsequently; or (iii) a group of remaining contracts. These groups represent the level of
aggregation at which insurance contracts are initially recognised and measured.
The profitability of groups of contracts is assessed by actuarial valuation models that take into
consideration existing and new business. FBD assumes that no contracts in the portfolio are onerous
at initial recognition unless facts and circumstances indicate otherwise. There are currently no
contracts grouped into ‘no significant possibility of becoming onerous’, due to the nature of the
insurance risks covered by the Group. All of the contracts issued have a maximum claim pay-out
potential that is greater than the premium received.
Recognition, modification and de-recognition
The Group recognises groups of insurance contracts it issues from the earliest of the following:
•
the beginning of the coverage period of the group of contracts;
•
the date when the first payment from a policyholder in the group is due or when the first payment
is received if there is no due date; and
•
when the Group determines that a group of contracts becomes onerous.
Only contracts that meet the recognition criteria by the end of the reporting period are included in the
groups. When contracts meet the recognition criteria in the groups after the reporting date, they are
added to the groups in the reporting period in which they meet the recognition criteria, subject to the
annual cohorts’ restriction. Composition of the groups is not reassessed in subsequent periods.
The Group derecognises insurance contracts when:
•
the rights and obligations relating to the contract are extinguished (i.e. discharged, cancelled or
expired), or
•
the contract is modified such that the modification results in a change in the measurement model
or the applicable standard for measuring a component of the contract, substantially changes the
contract boundary, or requires the modified contract to be included in a different group. In such
cases, the Group derecognises the initial contract and recognises the modified contract as a new
contract.
When a modification is not treated as a derecognition, the Group recognises amounts paid or received
for the modification of the contract as an adjustment to the relevant liability for remaining coverage
(LRC).
Contract boundary
The Group includes in the measurement of a group of insurance contracts all the future cash flows
within the boundary of each contract in the group. Cash flows are within the boundary of an insurance
contract if they arise from substantive rights and obligations that exist during the reporting period in
which the Group can compel the policyholder to pay the premiums, or in which the Group has a
substantive obligation to provide the policyholder with insurance contract services. A substantive
obligation to provide insurance contract services ends when the Group has the practical ability to
reassess the risks of the particular policyholder and, as a result, can set a price or level of benefits that
fully reflects those risks.
Cash flows outside the insurance contracts boundary relate to future insurance contracts and are
recognised when those contracts meet the recognition criteria.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
211
3 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
Initial and subsequent measurement - groups of contracts measured under the PAA
The Group applies the premium allocation approach (PAA) to all the insurance contracts that it issues
and reinsurance contracts that it holds. The PAA is an optional simplified measurement model in IFRS
17 that is available for insurance and reinsurance contracts that meet the eligibility criteria.
The Group is eligible to apply the PAA because the following criteria are met at initial recognition:
•
insurance contracts and losses-occurring reinsurance contracts: The coverage period of each
contract in the group is one year or less.
•
risk-attaching reinsurance contracts: The Group reasonably expects that the resulting
measurement of the asset for remaining coverage would not differ materially from the
measurement that would be produced applying the general measurement model (GMM).
The estimates of future cash flows:
•
are based on a probability weighted mean of the full range of possible outcomes;
•
are determined from the perspective of the Group;
•
reflect conditions existing at the measurement date; and
•
include a separate estimate for non-financial risk.
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 main assumption underlying these techniques is that a group’s past claims development
experience can be used to project future claims development and hence ultimate claims costs. These
methods extrapolate the development of paid and incurred losses, average costs per claim (including
claims handling costs), and claim numbers based on the observed development of earlier years and
expected loss ratios. Historical claims development is mainly analysed by accident years, but can also
be further analysed by significant business lines and claim types. Large claims are separately
addressed, separately projected in order to reflect their future development. Explicit assumptions are
made regarding future rates of claims inflation or loss ratios. Additional qualitative judgement is used
to assess the extent to which past trends may not apply in future, (e.g., to reflect one-off occurrences,
changes in external or market factors such as public attitudes to claiming, economic conditions, levels
of claims inflation, judicial decisions and legislation, as well as internal factors such as portfolio mix,
policy features and claims handling procedures) in order to arrive at the estimated ultimate cost of
claims that present the probability weighted expected value outcome from the range of possible
outcomes, taking account of all the uncertainties involved.
In its claims incurred assessments, the Group uses internal and market data. Internal data is derived
mostly from the Group’s claims reports. This information is used to develop scenarios related to the
latency of claims that are used for the projections of the ultimate number of claims.
As part of the claims settlement process, under some of the insurance contracts that have been
written in the property line of business where there are salvageable items, the Group will dispose or
sell such items. The Group also has the right to pursue third parties for payment of some or all costs.
Estimates of salvage recoveries and subrogation reimbursements are considered as an allowance in
the measurement of ultimate claims costs.
Other key circumstances affecting the reliability of assumptions include delays in settlement and
inflation rates.
An explicit risk adjustment for non-financial risk is estimated separately from the other estimates. For
contracts measured under the PAA, unless the contracts are onerous, the explicit risk adjustment for
non-financial risk is only estimated for the measurement of the liability for incurred claims (LIC).
The risk adjustment for non-financial risk is applied to the present value of the estimated future cash
flows and reflects the compensation the Group requires for bearing the uncertainty about the amount
and timing of the cash flows from non-financial risk as the Group fulfils insurance contracts. The Group
does not disaggregate the change in risk adjustment for non-financial risk between a financial and
non-financial portion and includes the entire change as part of the insurance service result. Methods
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
212
3 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
and assumptions used to determine the risk adjustment for non-financial risk are discussed in
accounting policy X.
The Group does not adjust the LRC for insurance contracts issued and the remaining coverage for
reinsurance contracts held for the effect of the time value of money as insurance premiums are due
within the coverage period of contracts, which is one year or less. The estimates of future cash flows
related to incurred claims are adjusted using the current discount rates to reflect the time value of
money and the financial risks related to those cash flows, to the extent not included in the estimates
of cash flows. The discount rates reflect the characteristics of the cash flows arising from the groups
of insurance contracts, including timing, currency and liquidity characteristics of the insurance
contracts. The determination of the discount rate that reflects the characteristics of the cash flows
and liquidity characteristics of the insurance contracts requires significant judgement and estimation.
The Group estimates certain fulfilment cash flows (FCF) at the portfolio level or higher and then
allocates such estimates to groups of contracts.
Insurance acquisition cash flows
The Group includes the following acquisition cash flows within the insurance contract boundary that
arise from selling, underwriting and starting a group of insurance contracts and that are:
•
costs directly attributable to individual contracts and groups of contracts; and
•
costs directly attributable to the portfolio of insurance contracts to which the group belongs,
which are allocated on a reasonable and consistent basis to measure the group of insurance
contracts.
For all groups, insurance acquisition cash flows will be allocated to related groups of insurance
contracts and amortised over the coverage period of the related group.
Cash flows that are not directly attributable to a portfolio of insurance contracts, such as some
product development and training costs, are recognised in non-attributable expenses as incurred.
Initial measurement
The carrying amount of a group of insurance contracts issued at the end of each reporting period is
the sum of:
•
the LRC; and
•
the LIC, comprising the FCF related to past service allocated to the group at the reporting date.
For insurance contracts issued, on initial recognition, the Group measures the LRC at the amount of
premiums received, less any acquisition cash flows paid and any amounts arising from the
derecognition of the prepaid acquisition cash flows asset.
The Group estimates the LIC as the FCF related to incurred claims.
Where facts and circumstances indicate that contracts are onerous at initial recognition, the Group
performs additional analysis to determine if a net outflow is expected from the contract. Such onerous
contracts are separately grouped from other contracts and the Group recognises a loss in the
Consolidated Income Statement for the net outflow, resulting in the carrying amount of the liability for
the group being equal to the FCF. A loss component is established by the Group for the LRC for such
onerous groups depicting the losses recognised and included in the LRC.
Subsequent measurement
For insurance contracts issued, at each of the subsequent reporting dates, the LRC is:
•
increased for premiums received in the period;
•
decreased for insurance acquisition cash flows paid in the period;
•
decreased for the amounts recognised as insurance revenue for the services provided in the period;
and
•
increased for the amortisation of insurance acquisition cash flows in the period recognised as
insurance service expenses.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
213
3 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
The FCF associated with incurred claims, therefore the LIC, is updated by the Group for current
assumptions at the end of every reporting period, using the current estimates of the amount, timing
and uncertainty of future cash flows and of discount rates.
If a group of contracts becomes onerous, the Group increases the carrying amount of the LRC by the
addition of a loss component provision. The inclusion of a loss component provision sets the value of
the LRC equal to the value that would be measured if the GMM was used as the measurement model.
The amount of the loss component is recognised in insurance service expenses. The loss component is
amortised over the remaining coverage period of the contracts within the onerous group. If
subsequent facts and circumstances indicate that the expected fulfilment cash flows for the LRC of
the onerous group has changed, then the Group will remeasure the FCF and readjust the loss
component accordingly.
Reinsurance contracts held
Reinsurance contracts held are measured on the same basis as insurance contracts, except that:
•
The adoption of the PAA is adapted to reflect the features of reinsurance contracts that differ from
insurance contracts;
•
References to onerous contracts refer to contracts on which there is a net gain on initial
recognition. For some groups of reinsurance contracts held, a group can comprise a single contract.
By the nature of the Group’s reinsurance treaties currently in effect, there are no reinsurance
contracts held that are a net gain on initial recognition nor that are deemed as having no
significant possibility of being a gain.
•
The Group recognises a group of reinsurance contracts held it has entered into from the earlier of
the following:
•
the beginning of the coverage period of the group of reinsurance contracts held. (However,
the Group delays the recognition of a group of reinsurance contracts held that provide
proportionate coverage until the date any underlying insurance contract is initially recognised,
if that date is later than the beginning of the coverage period of the group of reinsurance
contracts held); and
•
the date the Group recognises an onerous group of underlying insurance contracts if the
Group entered into the related reinsurance contract held in the group of reinsurance
contracts held at or before that date.
•
The risk adjustment for non-financial risk represents the amount of risk being transferred by the
Group to the reinsurer.
•
Reinsurance held cash flows are defined to be within the contract boundary of the reinsurance
contract if they arise from substantive rights and obligations of the Group that exist during the
reporting period in which the Group is compelled to pay amounts to the reinsurer or in which the
Group has a substantive right to receive services from the reinsurer.
•
The excess of loss reinsurance contracts held provide coverage for claims incurred during an
accident year.
•
All cash flows arising from claims incurred and expected to be incurred in the accident year are
included in the measurement of the reinsurance contracts held. Some of these contracts may
include reinstatement reinsurance premiums, which are guaranteed per the contractual
arrangements and are thus within the respective reinsurance contracts’ boundaries.
•
In the measurement of reinsurance contracts held, the probability weighted estimates of the
present value of future cash flows include the potential credit losses and other disputes of the
reinsurer to reflect the non-performance risk of the reinsurer.
•
On initial recognition, the Group measures the remaining coverage at the amount of ceding
premiums paid. The carrying amount of a group of reinsurance contracts held at the end of each
reporting period is the sum of:
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
214
3 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
•
the remaining coverage; and
•
the incurred claims, comprising the FCF related to past service allocated to the group at the
reporting date.
Instead of at initial recognition, where the Group recognises a loss on initial recognition of an onerous
group of underlying insurance contracts or when further onerous underlying insurance contracts are
added to a group, the Group establishes a loss-recovery component of the asset for remaining
coverage for a group of reinsurance contracts held depicting the recovery of losses. The loss-recovery
component adjusts the carrying amount of the asset for remaining coverage.
At each of the subsequent reporting dates, the remaining coverage is:
•
increased for ceding premiums paid in the period; and
•
decreased for the amounts of ceding premiums recognised as reinsurance expenses for the
services received in the period.
Where a loss component provision has been established for a group of onerous insurance contracts
then a corresponding loss-recovery component may be established for any expected reinsurance
recovery in respect of those onerous contracts. The loss-recovery component shall not exceed the
portion of the loss component that the entity expects to recover from the relevant group of
reinsurance contracts held.
Methods used and judgements applied in determining the IFRS 17 transition amounts
The Group has been able to apply the fully retrospective approach with the exception of using the
modified retrospective approach for the choice of initial recognition yield curves for underwriting years
2015 and prior.
For underwriting years 2015 and prior, the Group did not have reasonable and supportable information
to determine discount rates applicable on the date of initial recognition of the group of contracts, the
Group estimated the discount rates using an observable yield curve.
(iii) Amounts recognised in comprehensive income
Insurance revenue
The insurance revenue for the period is the amount of expected premium receipts allocated to the
period. The Group allocates the expected premium receipts to each period of insurance contract
services on the basis of the passage of time. But if the expected pattern of release of risk during the
coverage period differs significantly from the passage of time, then the allocation is made on the basis
of the expected timing of incurred insurance service expenses.
The Group changes the basis of allocation between the two methods above as necessary, if facts and
circumstances change. The change is accounted for prospectively as a change in accounting estimate.
For the periods presented, all revenue has been recognised on the basis of the passage of time.
Insurance service expenses
Insurance service expenses include the following:
•
incurred claims and benefits excluding investment components;
•
other incurred insurance acquisition expenses;
•
amortisation of insurance acquisition cash flows;
•
changes that relate to past service (i.e. changes in the FCF relating to the LIC); and
•
changes that relate to future service (i.e. losses/reversals of onerous groups of contracts from
changes in the loss components).
For the contracts measured under the PAA, amortisation of insurance acquisition cash flows is based
on the passage of time.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
215
3 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
Net income/(expense) from reinsurance contracts held
The Group presents separately on the face of the Consolidated Income Statement, the change in
amounts recoverable from reinsurers and the reinsurance expense. Re-instatement premiums
contingent on claims on the underlying contracts are treated as part of the claims that are expected
to be reimbursed under the reinsurance contracts held. Ceding commissions that are not contingent
on claims of the underlying contracts issued reduce ceding premiums and are accounted for as part of
reinsurance expenses.
Finance income/ (expense) from insurance contracts issued
Insurance finance income or expense comprise the change in the carrying amount of the group of
insurance contracts arising from:
•
interest accreted on the LIC; and
•
the effect of changes in interest rates and other financial assumptions.
The Group disaggregates insurance finance income or expenses on insurance contracts issued
between the Consolidated Income Statement and the statement of comprehensive income. The impact
of changes in market interest rates on the value of the insurance contract liabilities are reflected in the
Consolidated OCI in order to minimise accounting mismatches between the accounting for financial
assets and insurance assets and liabilities.
The constant rate used in a period is calculated applying the formula which uses three variables: the
estimate of future cash flows at the end of the reporting period (not discounted), the present value of
future cash flows brought forward discounted by the constant rate used in the previous period, and
the expected duration of the group contracts. In determining the constant rate, the Group estimates
the expected insurance finance income or expenses over the remaining duration of the group that is
partly implicit in the estimated cash flows.
The Group’s financial assets backing the insurance portfolios are predominantly measured at fair value
through Other Comprehensive Income (FVOCI).
F) OTHER PROVISIONS
Other provisions are recognised when the Group has a present obligation (legal or constructive) as a
result of past events, when it is probable that an outflow of resources will be required to settle the
obligation, and when the provision can be reliably estimated. Provisions are not recognised for future
operating losses.
Provisions are measured at management’s best estimate, at the balance sheet date, of the expenditure
required to settle the obligation.
The provision for State subsidies represents the Group’s current estimate of the constructive
obligation arising from the deduction of State subsidies from Business Interruption claims payments
following Covid-19 closures. The best estimate of the constructive obligation is based on the current
information available to the Group.
G) PROPERTY, PLANT AND EQUIPMENT
(i) Property
Property held for own use in the supply of services or for administrative purposes is stated at revalued
amounts, being the fair value at the date of revaluation which is determined by professional valuers,
less subsequent depreciation for buildings. Revaluations are performed with sufficient regularity such
that the carrying amount does not differ materially from that which would be determined using fair
values at the reporting date. Any revaluation increase arising on the revaluation of such property is
recognised in Other Comprehensive Income and credited to the revaluation reserve within equity,
except to the extent that it reverses a revaluation decrease for the same asset previously recognised.
A decrease on revaluation is charged as an expense to the Consolidated Income Statement to the
extent that it exceeds the balance, if any, held in the revaluation reserve relating to previous
revaluation of that asset.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
216
3 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
The gain or loss arising on the disposal or retirement of an asset is determined as the difference
between the sales proceeds and the carrying amount of the asset and is recognised in the
Consolidated Income Statement and any associated revaluation surplus is transferred to retained
earnings.
(ii) Computer equipment and fixtures and fittings
Computer equipment and fixtures and fittings are stated at cost less accumulated depreciation and
accumulated impairment losses.
(iii) Depreciation
Depreciation is provided in respect of computer equipment and fixtures and fittings, and is calculated
in order to write off the cost or valuation of the assets over their expected useful lives on a straight
line basis over a three to ten year period. Depreciation on assets under development commences when
the assets are ready for their intended use.
Buildings are depreciated to their residual value over the useful economic life of the building, on a
straight line basis. Land is not depreciated.
The assets' residual values, useful lives and methods of depreciation are reviewed at least each
financial year end and adjusted if appropriate.
The estimated useful lives of property, plant and equipment are as follows:
Buildings: 30 years
Computer equipment: 3-5 years
Fixtures and fittings: 10 years
H) POLICY ADMINISTRATION SYSTEM
The policy administration system is stated at cost less accumulated amortisation and accumulated
impairment losses. Amortisation is provided in respect of the policy administration system and is
calculated in order to write off the costs incurred to date, over its remaining useful life which is
determined to be 1.5 years on a straight line basis.
I) INTANGIBLE ASSETS
Intangible assets are stated at cost less accumulated amortisation and less any accumulated
impairment losses. Intangible assets comprise computer software and these assets are amortised on a
straight line basis over a five year period.
J) INVESTMENT PROPERTY
Investment property, which is property held to earn rentals and/or for capital appreciation, is
recognised initially at cost and stated at fair value at the reporting date being the value determined
by qualified independent professional valuers. Gains or losses arising from changes in the fair value are
recognised in the Consolidated Income Statement for the period in which they arise.
An investment property is derecognised upon disposal or when the investment property is
permanently withdrawn from use and no future economic benefits are expected. Any gain or loss
arising on derecognition of the property (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in the Consolidated Income Statement for
the period in which the property is derecognised.
K) FINANCIAL INSTRUMENTS
a. Recognition, classification and measurement
Financial assets and financial liabilities are recognised in the Statement of Financial Position when, and
only when, the Group becomes party to the contractual provisions of the instrument.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
217
3 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
The Group classifies its financial assets, subsequent to initial recognition, at either:
•
amortised cost;
•
fair value through Other Comprehensive Income (FVOCI); or
•
fair value through profit and loss (FVTPL).
The Group determines the appropriate classification based on:
(i) the business model for managing the financial assets: how the Group manages its financial assets
in order to generate cash flows—either by collecting contractual cash flows, selling the asset or
both; and
(ii) the contractual cash flow characteristics of the financial asset: the Solely Payments of Principal and
Interest (SPPI) test - whether the contractual terms of the financial asset give rise to, on specified
dates, cash flows that are solely payments of principal and interest.
A financial asset is measured at amortised cost if both the following conditions are met:
(i) the financial asset is held within a business model whose objective is to hold the financial asset in
order to collect contractual cash flows; and
(ii) the contractual terms of the financial asset give rise on specific dates to cash flows that are SPPI
on the principal amount outstanding.
A financial asset is measured at FVOCI if both the following conditions are met:
(i) the financial asset is held within a business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets; and
(ii) the contractual terms of the financial asset give rise on specific dates to cash flows that are SPPI
on the principal amount outstanding.
A financial asset is measured at fair value though profit and loss (FVTPL), unless it is measured using
either of the above two methods – amortised cost or FVOCI.
Investments at FVOCI
FVOCI investments relate to quoted debt securities. These investments pass the SPPI test and are
classified as FVOCI as they are held within a business model whose objective is achieved by both
collecting contractual cash flows and selling financial assets. They are recognised on a trade date
basis at fair value, and are subsequently revalued at each reporting date to fair value, with gains and
losses being included directly in the Statement of Comprehensive Income until the investment is
disposed of or determined to be impaired, at which time the cumulative gain or loss previously
recognised in the Statement of Comprehensive Income, is included in the Consolidated Income
Statement for the year.
Interest revenue using the effective interest method and foreign exchange gains and losses on the
financial asset are recognised in the Consolidated Income Statement.
The effective interest method is a method of calculating the amortised cost of a debt instrument and
of allocating interest income over the relevant period. The effective interest rate is the rate that
exactly discounts estimated future cash receipts through the expected life of the debt instrument, or,
where appropriate, a shorter period, to the gross carrying amount.
The Expected Credit Loss (ECL) on debt instruments measured at FVOCI 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 Consolidated OCI with a corresponding charge to provision for credit losses in the
Consolidated Income Statement.
Investments at FVTPL
Investments at FVTPL are stated at fair value and include quoted shares, collective investment
schemes and unquoted investments. These investments are classified as FVTPL as they do not pass
the SPPI test. They are recognised on a trade date basis at fair value and are revalued at subsequent
reporting dates at fair value, with gains and losses being included in the Consolidated Income
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
218
3 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
Statement in the period in which they arise. Any dividend or interest earned on FVTPL investments is
also recognised in the Consolidated Income Statement.
Loans
Loans are recognised on a trade date basis at fair value plus transaction costs and are subsequently
measured at amortised cost using the effective interest rate method. When it is not possible to
estimate reliably the cash flows or the expected life of a loan, the projected cash flows over the full
term of the loan are used to determine fair value.
Other receivables
Other receivables are measured at initial recognition at fair value and are subsequently measured at
amortised cost, after recognising a loss allowance for ECLs (note 3 K (c)).
Deposits with banks
Term deposits with banks comprise cash held for the purpose of investment. Short term deposits with
banks are held for operating purposes and included in cash and cash equivalents. Deposits with banks
and cash and cash equivalents are valued at amortised cost.
Subordinated debt
Subordinated debt issued by the Group comprise callable dated deferrable subordinated notes. This is
callable by FBD Insurance plc. The subordinated debt is measured at amortised cost using the
effective interest rate method. Interest and amortisation relating to the financial liability is recognised
in the Consolidated Income Statement.
b. Derecognition
The Group derecognises a financial asset only when the contractual rights to the cash flows of the
asset expire, or when it transfers the financial asset and substantially all the risks and rewards of the
ownership of the asset to another entity. If the Group neither transfers nor retains substantially all the
risk and rewards of ownership and continues to control the transferred asset, the Group recognises its
retained interest in the asset and an associated liability to the extent of its continuing involvement in
the financial asset. If the Group retains substantially all the risks and rewards of ownership of a
transferred financial asset, the Group continues to recognise the financial asset.
The Group derecognises financial liabilities when, and only when, the Group’s obligations are
discharged, cancelled or they expire.
c. Impairment of financial instruments
The Group recognises loss allowances for ECLs at each balance sheet date for the following financial
instruments that are not measured at FVTPL;
•
financial assets at FVOCI
•
financial assets at amortised cost
Financial assets at FVOCI
The Group categorises financial instruments classified as FVOCI into the following categories at each
reporting date.
Stage 1: 12-month expected credit losses (not credit-impaired)
These are financial instruments where there has not been a significant increase in credit risk since
initial recognition. An impairment loss allowance equal to the 12-month ECL is recognised, which is the
portion of the lifetime ECL resulting from default events that are possible within the next 12 months.
Stage 2: Lifetime expected credit losses (not credit-impaired)
These are financial instruments where there has been a significant increase in credit risk since initial
recognition but which are not credit-impaired. The Group assesses whether the risk of default over the
remaining expected life of the financial instrument is significantly higher than had been anticipated at
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
219
3 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
initial recognition. The credit risk is always considered as significantly increased if any contractual
payments are more than 30 days past due. An impairment loss allowance equal to the lifetime ECL is
recognised, being the ECL resulting from all possible default events over the expected life of the
financial instrument.
Stage 3: Lifetime expected credit losses (credit-impaired)
These are financial instruments which are credit-impaired at the reporting date but were not credit-
impaired at initial recognition. If the financial instrument is more than 90 days past due or if there is
other evidence of financial distress (for example, a legal bankruptcy or default), the instrument is
classified as credit-impaired (stage 3) which means the impairment loss has to reflect the lifetime ECL
as in stage 2. The interest, for Stage 3 assets, is calculated by applying the effective interest rate (EIR)
to their carrying value; if the asset is no longer credit-impaired, the calculation of interest income
reverts to the gross basis.
Financial assets at amortised cost
The Group calculates a loss allowance for financial assets at amortised cost. The Group considers the
best reasonable and supportable information when considering ECLs for ‘Loans’ and ‘Other
receivables’. The Group calculates ECL on loans at initial recognition by considering the consequences
and probabilities of possible defaults only for the next 12 months (stage 1). It continues to apply this
method until a significant increase in credit risk has occurred, at which point the loss allowance is
measured based on lifetime ECLs (stage 2) or where significant increase in credit risk has occurred and
the asset is credit-impaired (stage 3). For ‘Other receivables’ the Group uses the simplified approach,
and therefore does not track the changes in credit risk, but instead recognise a loss allowance based
on lifetime ECLs at each reporting date. Impairment loss allowances for ECL on financial assets at
amortised cost are presented as a reduction in the gross carrying amount in the Statement of Financial
Position.
The measurement of impairment losses under IFRS 9 across relevant financial assets requires
judgement, in particular, for the estimation of the amount and timing of future cash flows when
determining impairment losses and the assessment of a significant increase in credit risk. These
estimates are driven by the outcome of modelled ECL scenarios and the relevant inputs used.
L) LEASES
(i) The Group as Lessor
Rental income from operating leases is recognised on a straight-line basis over the term of the relevant
lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the
carrying amount of the leased asset and recognised on a straight-line basis over the operating lease
term.
(ii) The Group as Lessee
A lease is defined as ‘a contract, or part of a contract, that conveys the right to use an asset (the
underlying asset) for a period of time in exchange for consideration’.
To apply this definition the Group assesses whether the contract meets three key evaluations which
are whether:
•
the contract contains an identified asset, which is either explicitly identified in the contract or
implicitly specified by being identified at the time the asset is made available to the Group;
•
the Group has the right to obtain substantially all of the economic benefits from use of the
identified asset throughout the period of use, considering its rights within the defined scope of the
contract the Group has the right to direct the use of the identified asset throughout the period of
use; and
•
The Group assess whether it has the right to direct ‘how and for what purpose’ the asset is used
throughout the period of use.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
220
3 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
Measurement and recognition of leases as a lessee
At lease commencement date, the lease liability is measured at the present value of the remaining
lease payments, discounted using the Group’s incremental borrowing rate. The right of use asset is
recognised as an amount equal to the lease liability, adjusted for amount of any prepaid or accrued
lease payments relating to the lease.
The Group depreciates the right of use assets on a straight-line basis from the lease commencement
date to the earlier of the end of the useful life of the right of use asset or the end of the lease term.
The Group also assesses the right of use assets for impairment when such indicators exist.
Lease payments included in the measurement of the lease liability are made up of fixed payments,
variable payments based on an index or rate, amounts expected to be payable under a residual value
guarantee and payments arising from options reasonably certain to be exercised. Subsequent to initial
measurement, the liability will be reduced for payments made and increased for interest. It is re-
measured to reflect any reassessment or modification, or if there are changes in in-substance fixed
payments.
M) CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise cash on hand, demand deposits and money market funds with
maturities of 95 days or less held for the purpose of meeting short-term cash commitments rather
than for investment or other purposes. Deposits with banks and cash and cash equivalents are valued
at amortised cost. The money market funds are valued at fair value through profit and loss.
The Group classifies cash flows related to the purchase and sale of equity and debt instruments and
deposits with banks as investing cash flows. In the Group’s view, this gives more useful information to
the users of the financial statements given the nature and scope of the activities of the Group.
The Group has chosen to present interest paid and interest received on debt and equity instruments
as operating cash flows. The group classifies cash flows related to interest on subordinated debt as
financing activities. In the Group’s view, this gives more useful information to the users of the financial
statements given the nature and scope of the activities of the Group.
N) TAXATION
Income tax expense or credit represents the sum of income tax currently payable and deferred income
tax. Income tax currently payable is based on taxable profit for the year. Taxable profit differs from
profit before tax as reported in the Consolidated Income Statement because it excludes items of
income or expense that are taxable or deductible in other years and further excludes items that are
not taxable or deductible.
The Group’s liability for income tax is calculated using rates that have been enacted or substantively
enacted at the reporting date. Income tax is recognised in the Consolidated Income Statement except
to the extent that it relates to items recognised in Other Comprehensive Income or directly in equity.
Accounting adjustments to opening reserves as a result of the adoption of IFRS 9 and IFRS 17 (i.e. the
retrospective effect of adopting the accounting standard recognised in opening reserves) will be
brought into account as a transitional adjustment and spread over 5 years for tax purposes.
Deferred income tax is provided, using the liability method, on all differences between the carrying
amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation
purposes. Deferred income tax assets and liabilities are measured at the tax rates that are expected
to apply in the year when the asset is expected to be realised or the liability to be settled.
Deferred tax assets are recognised for all deductible differences, carry forward of unused tax credits
and unused tax losses, to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences and the carry forward of unused tax credits and unused
tax losses can be utilised. The carrying amount of deferred income tax assets is reviewed at each
reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit
would be available to allow all or part of the deferred income tax asset to be utilised.
Deferred taxation liabilities are recognised for taxable temporary differences arising on investments in
subsidiaries except where the Group is able to control the reversal of the temporary differences and it
is probable that the temporary differences will not reverse in the foreseeable future.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
221
3 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
Deferred taxation assets and liabilities are offset when there is a legally enforceable right to set off
current taxation assets against current taxation liabilities and when they relate to income taxes levied
by the same taxation authority and the Group intends to settle on a net basis.
O) RETIREMENT BENEFITS
The Group provides either defined benefit or defined contribution retirement benefit schemes for the
majority of its employees.
(i) Defined benefit scheme
A full actuarial valuation of the scheme is undertaken every three years and is updated annually to
reflect current conditions in the intervening periods for the purposes of preparing the financial
statements.
The liability or asset recognised in the Statement of Financial Position in respect of defined benefit
pension plans is the present value of the defined benefit obligation at the end of the reporting period
less the fair value of plan assets. The defined benefit obligation is calculated annually by independent
actuaries using the projected unit credit method. The present value of the defined benefit obligation is
determined by discounting the estimated future cash outflows using interest rates of high-quality
corporate bonds that are denominated in the currency in which the benefits will be paid, and that
have terms approximating to the terms of the related obligation. In countries where there is no deep
market in such bonds, the market rates on government bonds are used.
The net interest cost is calculated by applying the discount rate to the net balance of the defined
benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense
in the Consolidated Income Statement.
Remeasurement gains and losses arising from experience adjustments and changes in actuarial
assumptions are recognised in the period in which they occur, directly in Other Comprehensive
Income. They are included in retained earnings in the Statement of Changes in Equity and in the
Statement of Financial Position.
Changes in the present value of the defined benefit obligation resulting from plan amendments or
curtailments are recognised immediately in the Consolidated Income Statement as past service costs.
(ii) Defined contribution schemes
Costs arising in respect of the Group’s defined contribution retirement benefit schemes are charged to
the Consolidated Income Statement in line with the service received.
P) CURRENCY
For the purpose of the consolidated financial statements, the results and financial position of each
Group company are expressed in Euro, which is the functional currency of the Company, and the
presentation currency for the consolidated financial statements.
In preparing the financial statements of the individual companies, transactions in currencies other than
the entity’s functional currency (foreign currencies) are recognised at the rates of exchange prevailing
on the dates of the transactions. At each Statement of Financial Position date, monetary assets and
liabilities that are denominated in foreign currencies are retranslated at the rates prevailing at that
date. Non-monetary items carried at fair value that are denominated in foreign currencies are
translated at the rates prevailing at the date when the fair value was determined.
On consolidation, the assets and liabilities of the Group’s non Euro-zone operations are translated at
exchange rates prevailing on the reporting date. Income and expense items are translated at the
average exchange rates for the period unless exchange rates fluctuate significantly, in which case the
exchange rates at the date of transactions are used. Exchange differences that are classified as equity
are transferred to the translation reserve. Such translation differences are recognised as income or
expense in the period in which the operation is disposed.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
222
3 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
Q) SHARE-BASED PAYMENTS AND LONG TERM INCENTIVE PLANS
The Group operates a long-term incentive plan based on non-market vesting conditions. The fair value
of the non-market based awarded shares is determined with reference to the share price of the Group
at the date of grant. The cost is expensed in the Consolidated Income Statement over the vesting
period at the conclusion of which the employees become unconditionally entitled to the shares once
performance conditions are met. The corresponding amount to the expense is credited to a separate
reserve in the Statement of Financial Position. At each period end, the Group reviews its estimate of
the number of shares that it expects to vest and any adjustment relating to current and past vesting
periods is brought to the Consolidated Income Statement. The share awards are all equity settled.
R) TREASURY SHARES
Where any Group company purchases the Company’s equity share capital, the consideration paid is
shown as a deduction from ordinary shareholders’ equity. Consideration received on the subsequent
sale or issue of treasury shares is credited to ordinary shareholders’ equity. Treasury shares are
excluded when calculating earnings per share.
S) IMPAIRMENT OF ASSETS
(i) Impairment of tangible and intangible assets
At each reporting date, the Group reviews the carrying amounts of its tangible and intangible assets
to determine whether there is any indication that those assets have suffered an impairment loss. If any
such indication exists, the recoverable amount of the asset is estimated to determine the extent of
the impairment loss, if any. Where the asset does not generate cash flows that are independent from
other assets, the Group estimates the recoverable amount of the cash generating unit to which the
asset belongs.
The recoverable amount is the higher of the fair value less costs to sell and value in use. In assessing
value in use, the estimated future cash flows attributable to the asset (or cash-generating unit) are
discounted to their present value using a pre-taxation discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset for which the estimates of
future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying
amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable
amount. An impairment loss is recognised as an expense immediately, unless the relevant asset is
carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Where a revaluation loss subsequently reverses, the carrying amount of the asset (or cash-generating
unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying
amount does not exceed the carrying amount that would have been determined had no revaluation
loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of a revaluation
loss, other than in relation to goodwill, is recognised as income immediately, unless the relevant asset
is carried at a revalued amount, in which case the reversal of the revaluation loss is treated as a
revaluation increase.
(ii) Impairment of financial assets
Note 3 (K) (c) outlines the policy for accounting for impairment of financial assets.
T) OTHER PAYABLES
Other payables are recognised initially at their fair value and subsequently measured at amortised cost
which approximates to fair value given the short-term nature of these liabilities.
U) CALLED UP SHARE CAPITAL
Ordinary shares are classified in shareholders’ equity when there is no obligation to transfer cash or
other assets to the holders.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
223
3 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
V) CAPITAL RESERVES
Capital reserves represents transfers from share capital, retained earnings and other reserves in
accordance with relevant transactions throughout the reporting period.
W) PREFERENCE SHARE CAPITAL
Preferred shares issued by the Group are recorded as equity when there is no contractual obligation to
redeem and there is no contractual obligation to deliver cash or other financial assets.
X) CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS IN APPLYING
ACCOUNTING POLICIES
The principal accounting policies adopted by the Group are set out on pages 207 to 226. In the
application of these 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 sources of judgement and estimation in the preparation of the financial
statements are detailed below. The judgements and estimates and associated assumptions are based
on historical experience and other factors that are considered relevant. Actual results may differ from
these estimates.
The judgements, estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting judgements and estimates are recognised in the period in which the judgement or estimate
is revised if the revision affects only that period, or in the period of the revision and future periods if
the revision affects both current and future periods.
The following are the critical judgements and estimates that the Directors have made in the process of
applying the Group’s accounting policies and that have the most significant effect on the amounts
recognised in the financial statements.
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 incorporate, 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.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
224
3 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
The estimation of outstanding claims also includes factors such as the potential for inflation and the
potential impact of the Personal Injuries Guidelines and its upcoming revision. 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.
FBD have now settled over 90% of its Covid-19 Business Interruption claims. This has significantly
reduced the uncertainty related to the measurement of losses.
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 A-
or 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.
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 sovereign and corporate bond portfolio. The liquidity profile
of the assets 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
31 Dec 2024
EUR
2.5 %
2.4 %
2.4 %
2.6 %
2.6 %
2.5 %
31 Dec 2023
EUR
3.5 %
2.6 %
2.5 %
2.5 %
2.6 %
2.5 %
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
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
225
3 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
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 year-end
2024, the risk adjustment for non-financial risk was at the 80th percentile, and was unchanged from
year-end 2023.
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 will 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 for non-financial risk were unchanged for year-end 2024. The assumptions were updated
to take account of the changing environment over the year, in particular the recommended changes to
awards under the Personal Injury Guidelines.
Uncertainties in impairment testing
As at the reporting date FBD Holdings plc, whose market capitalisation, that is the quoted share price
multiplied by the number of ordinary shares in issue, was lower than the Shareholders’ Funds as per
the Statement of Financial Position. There are a large number of factors driven by market conditions
that can influence the market capitalisation of a company which include but are not limited to factors
such as shares being traded less frequently. The market capitalisation being below net assets is
considered to be an external indicator of impairment and creates a necessity to make a formal
estimate of recoverable amount to test whether any actual impairment exists. For tangible and
intangible assets, the recoverable amount of an asset is the higher of its value in use or its fair value
less costs to sell.
The Group has carried out impairment testing on tangible and intangible assets. The recoverable
amount of an asset is the higher of its value in use or its fair value less costs to sell. In the case of the
Property, Plant and Equipment (excluding Owner occupied property which is held at revalued amount),
Policy administration system, Intangible assets and Right of use assets there is no reliable estimate of
the price at which an orderly transaction to sell the assets would take place and there are no direct
cash-flows expected from the individual assets.
These assets are an integral part of the FBD General Insurance business, therefore, the smallest group
of assets that can be classified as a cash generating unit is the FBD General Insurance business.
The Value in Use cash flow projections are based on the budget 2025 figures approved by the Board
in December 2024 and the five year strategic projections approved by the Board in quarter four 2024,
and factor in both past experience as well as expected future outcomes related to market data and
the strategy adopted. An allowance for January 2025 weather events was included in projections. The
2030 figures are extrapolated assuming the performance in 2030 is in line with 2029. The time period
of six years used in the cash flow projections is less than the weighted average remaining useful life of
the assets in the FBD General Insurance business being assessed. This projection and plan represent
management’s best estimate of future underwriting profits and fee income for FBD.
The underlying assumptions of these forecasts include average premium, number of policies written,
claims frequency, claims severity, weather experience, inflation, commission rates, fee income charges
and expenses. The average gross written premium growth rate used for 2025 is 4%, for 2026 is 5%,
followed by a 4% growth rate for 2027, 3% for 2028, 2% for 2029 and flat for 2030. Future cash flows
are discounted using an estimated weighted average cost of capital (WACC) of 8.8% which is
considered a reasonable estimate following the recent increase in risk free rates.
Sensitivity analysis was performed on the projections to allow for possible variations in the amount of
the future cash flows and potential discount rate changes. The sensitivities include climate change
scenarios in line with the ORSA, claims frequency and severity increases, reduced growth rates and
positive impacts of new initiatives.
The value in use of the cash generating unit exceeded the carrying value of the assets in the base
case and in all the sensitivities, demonstrating that no reasonably possible change in key assumptions
would result in an impairment of the assets. The largest reduction in the level of headroom was from a
climate change scenario.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
226
3 SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
4. SEGMENTAL INFORMATION
(a) 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 Annual 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.
However, in accordance with IFRS 8, these sectors do not qualify as operating segments. 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 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-insurance 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 are reviewed by sector
and 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.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
227
The following is an analysis of the Group’s revenue and results from continuing operations by
reportable segments:
2024
General
insurance
All other
segments
Total
€000s
€000s
€000s
Insurance revenue
441,005
—
441,005
Insurance service expenses
(278,452)
—
(278,452)
Net expense from reinsurance contracts held
(51,453)
—
(51,453)
Insurance service result
111,100
—
111,100
Total investment return
25,554
533
26,087
Net insurance finance expenses
(6,234)
—
(6,234)
Net insurance and investment result
130,420
533
130,953
Other finance costs
(2,556)
—
(2,556)
Non-attributable expenses
(37,804)
—
(37,804)
Movement in other provisions
(6,695)
—
(6,695)
Revenue from contracts with customers
—
3,667
3,667
Financial services income and expenses
475
(11,075)
(10,600)
Revaluation of property, plant and equipment
100
—
100
Profit/(loss) before taxation
83,940
(6,875)
77,065
Income taxation (charge)/credit
(10,433)
573
(9,860)
Profit/(loss) for the period
73,507
(6,302)
67,205
Other information
Insurance acquisition expenses
(84,633)
—
(84,633)
Depreciation/amortisation
(16,049)
—
(16,049)
Impairment of other assets
(500)
—
(500)
Capital additions
7,041
788
7,829
Statement of financial position
Segment assets
1,333,453
32,815
1,366,268
Segment liabilities
(870,209)
(9,932)
(880,141)
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
228
4 SEGMENTAL INFORMATION (continued)
2023
General
insurance
All other
segments
Total
€000s
€000s
€000s
Insurance revenue
401,026
—
401,026
Insurance service expenses
(210,052)
—
(210,052)
Net expense from reinsurance contracts held
(64,666)
—
(64,666)
Insurance service result
126,308
—
126,308
Total investment return
18,707
387
19,094
Net insurance finance expenses
(2,911)
—
(2,911)
Net insurance and investment result
142,104
387
142,491
Other finance costs
(2,559)
—
(2,559)
Non-attributable expenses
(34,018)
—
(34,018)
Movement in other provisions
(15,831)
(2,500)
(18,331)
Revenue from contracts with customers
—
2,468
2,468
Financial services income and expenses
237
(7,170)
(6,933)
Impairment of property, plant and equipment
(1,708)
—
(1,708)
Profit/(loss) before taxation
88,225
(6,815)
81,410
Income taxation (charge)/credit
(12,387)
518
(11,869)
Profit/(loss) for the period
75,838
(6,297)
69,541
Other information
Insurance acquisition expenses
(75,909)
—
(75,909)
Depreciation/amortisation
(12,799)
—
(12,799)
Impairment of other assets
(4,807)
—
(4,807)
Capital additions
10,643
—
10,643
Statement of financial position
Segment assets
1,335,515
31,559
1,367,074
Segment liabilities
(878,344)
(8,771)
(887,115)
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:
a. 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
b. All liabilities are allocated to reportable segments. Liabilities for which reportable segments are
jointly liable are allocated in proportion to segment assets.
(b) Geographical segments
The Group’s operations are located in Ireland.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
229
4 SEGMENTAL INFORMATION (continued)
(c) Insurance service expenses
Insurance service expenses, in the General Insurance segment, comprise the following:
2024
2023
€000s
€000s
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
Amortisation of insurance acquisition cash flows
(84,633)
(75,909)
Total
(278,452)
(210,052)
Total insurance acquisition and non-attributable expenses, in the General Insurance segment, comprise
the following:
2024
2023
€000s
€000s
Amortisation of insurance acquisition cash flows
(84,633)
(75,909)
Non-attributable expenses
(37,804)
(34,018)
Total expenses
(122,437)
(109,927)
The below tables provide further details of the expenses of the Group by reportable segments.
2024
Amortisation
of insurance
acquisition
cash flows
Non-
attributable
Total General
insurance
All other
segments
Total
€000s
€000s
€000s
€000s
€000s
Employee benefit expense
42,337
21,058
63,395
4,487
67,882
Depreciation
1,373
1,782
3,155
—
3,155
Amortisation
12,060
834
12,894
—
12,894
Other
28,863
14,130
42,993
6,588
49,581
Total
84,633
37,804
122,437
11,075
133,512
2023
Amortisation
of insurance
acquisition
cash flows
Non-
attributable
Total General
insurance
All other
segments
Total
€000s
€000s
€000s
€000s
€000s
Employee benefit expense
38,780
18,183
56,963
3,760
60,723
Depreciation
1,478
1,630
3,108
—
3,108
Amortisation
8,976
715
9,691
—
9,691
Other
26,675
13,490
40,165
3,410
43,575
Total
75,909
34,018
109,927
7,170
117,097
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
230
4 SEGMENTAL INFORMATION (continued)
5. NET INVESTMENT RETURN
The net gain or loss for each class of financial instrument by measurement category is as follows:
2024
Amortised
Cost
FVOCI
FVTPL
FVTPL
Total
Designated
Designated
Mandatory
€000s
€000s
€000s
€000s
€000s
Interest income from financial assets
Cash and cash equivalents
1,918
—
—
2,599
4,517
Government bonds
—
1,347
—
—
1,347
Other debt securities
—
9,769
—
—
9,769
1,918
11,116
—
2,599
15,633
Net gain on FVTPL investments
Collective investment scheme
—
—
—
11,744
11,744
Unquoted investments
—
—
—
32
32
—
—
—
11,776
11,776
Other
Expenses, net of income, from investment
properties
—
—
—
(58)
(58)
Unrealised loss on investment properties
—
—
—
(600)
(600)
Net credit impairment loss
—
(59)
—
—
(59)
Net gain on FVOCI debt securities
—
18,426
—
—
18,426
—
18,367
—
(658)
17,709
Recognised in Consolidated Income Statement
1,918
10,452
—
13,717
26,087
Recognised in Consolidated OCI
—
19,031
—
—
19,031
Recognised in total comprehensive income
1,918
29,483
—
13,717
45,118
During the period to 31 December 2024 a realised loss of €605,000 (2023: loss of €1,969,000) on
FVOCI investments was reclassified from Other Comprehensive Income to the Consolidated Income
Statement.
FBD Holdings
Annual Report 2024
Strategic
Report
Environmental, Social
& Governance
Financial
Statements
Other
Information
231
2023
Amortised
Cost
FVOCI
FVTPL
FVTPL
Total
Designated
Designated
Mandatory
€000s
€000s
€000s
€000s
€000s
Interest income from financial assets
Cash and cash equivalents
1,843
—
—
1,634
3,477
Government bonds
—
1,848
—
—
1,848
Other debt securities
—
6,659
—
—
6,659
1,843
8,507
—
1,634
11,984
Net gain on FVTPL investments
Collective investment scheme
—
—
—
12,016
12,016
Unquoted investments
—
—
—
—
—
—
—
—
12,016
12,016
Other
Income, net of expenses, from investment
properties
—
—
—
1
1
Unrealised loss on investment properties
—
—
—
(3,100)
(3,100)
Net credit impairment gain
—
162
—
—
162
Net gain on FVOCI debt securities
—
39,423
—
—
39,423
—
39,585
—
(3,099)
36,486
Recognised in Consolidated Income Statement
1,843
6,700
—
10,551
19,094
Recognised in Consolidated OCI
—
41,392
—
—
41,392
Recognised in total comprehensive income
1,843
48,092
—
10,551
60,486
During the year to 31 December 2023 a realised loss of €1,969,000 on FVOCI investments was
reclassified from Other Comprehensive Income to the Consolidated Income Statement.
6. FINANCE INCOME/(EXPENSE) RECOGNISED IN
COMPREHENSIVE INCOME
The Group disaggregates finance income or expense on insurance contracts issued and reinsurance
contracts held between Consolidated Income Statement and Consolidated OCI. The impact of
changes in market interest rates on the value of the insurance liabilities are reflected in Consolidated
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 to ensure that its insurance contract liabilities
net of the reinsurance contract assets/liabilities are matched by cash and fixed interest securities of
low risk and similar 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 and loss account on
liquidation.
The tables below detail:
a. the element of interest accretion on the LIC from the prior reporting period; and
b. the effect of changes in interest rates and other financial assumptions during the period on the
finance income/(expense) recognised in comprehensive income.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statements
Financial
Statements
Other
Information
232
5 NET INVESTMENT RETURN (continued)
Total investment return during the period is detailed in note 5 including the corresponding mark to
market gains or losses on FVOCI recognised.
Finance (expense)/income from insurance contracts issued recognised
in comprehensive income:
2024
2023
€000s
€000s
Interest accreted
(15,018)
(15,359)
Effect of changes in interest rates and other financial assumptions during the
period
1,362
(6,054)
Total
(13,656)
(21,413)
Represented by:
Amounts recognised in profit or loss
(7,459)
(4,160)
Amounts recognised in OCI
(6,197)
(17,253)
Finance income /(expense) from reinsurance contracts held
recognised in comprehensive income:
2024
2023
€000s
€000s
Interest accreted
2,429
3,570
Effect of changes in interest rates and other financial assumptions during the
period
(277)
1,355
Total
2,152
4,925
Represented by:
Amounts recognised in profit or loss
1,225
1,249
Amounts recognised in OCI
927
3,676
7. PROFIT BEFORE TAXATION
2024
2023
€000s
€000s
Profit before taxation has been stated after charging:
Depreciation and amortisation
16,049
12,799
The remuneration of the Directors is disclosed in the audited section of the Report on Directors’
Remuneration on pages 74 to 94. These disclosures form an integral part of the financial statements.
8. INFORMATION RELATING TO AUDITORS' REMUNERATION
An analysis of fees payable to the statutory audit firm is as follows:
2024
2023
Company
Group
Company
Group
€000s
€000s
€000s
€000s
Description of service
Audit of statutory financial statements
396
548
202
606
Other assurance services
40
375
100
202
Total auditors remuneration
436
923
302
808
Fees payable by the Company are included with the fees payable by the Group in each category.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
233
6 FINANCE INCOME/(EXPENSE) RECOGNISED IN COMPREHENSIVE INCOME (continued)
Other assurance services relate to CSRD limited assurance (2024 only), Solvency II audit, the audit of
the defined contribution scheme, an agreed upon procedures engagement in respect of the MIBI
return, all of which are prescribed under law or regulation, and the review of the Group's interim report.
9. STAFF COSTS AND NUMBERS
The average number of persons employed by the Group was as follows:
2024
2023
No.
No.
Underwriting
1,015
964
Financial services
23
24
Total
1,038
988
The aggregate employee benefit expense was as follows:
2024
2023
€000s
€000s
Wages and salaries
62,735
57,094
Social welfare costs
6,966
5,771
Pension costs
5,200
4,910
Share-based payments
3,610
2,640
Total employee benefit expense
78,511
70,415
10. INCOME TAXATION CHARGE
2024
2023
€000s
€000s
Irish corporation taxation charge
(10,547)
(11,679)
Adjustments in respect of prior financial years
106
(302)
Current taxation charge
(10,441)
(11,981)
Deferred taxation credit
581
112
Income taxation charge
(9,860)
(11,869)
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
234
8 INFORMATION RELATING TO AUDITORS' REMUNERATION (continued)
The taxation charge in the Consolidated Income Statement is higher (2023: higher) than the standard
rate of corporation taxation in Ireland. The differences are explained below:
2024
2023
€000s
€000s
Profit before taxation
77,065
81,410
Corporation taxation charge at standard rate of 12.5% (2023: 12.5%)
9,633
10,176
Effects of:
Non-taxable income/unrealised gains/losses or expenses not deductible for tax
purposes
320
1,368
Higher rates of taxation on other income
13
23
Adjustments in respect of prior financial years
(106)
302
Income taxation charge
9,860
11,869
Taxation as a percentage of profit before taxation
12.8 %
14.6 %
In addition to the amount charged to the Consolidated Income Statement, the following taxation
amounts have been recognised directly in the Consolidated Statement of Comprehensive Income:
2024
2023
€000s
€000s
Deferred taxation on:
Actuarial movement on retirement benefit obligations
87
201
Insurance/reinsurance finance expenses/income from contracts
659
1,697
Revaluation of owner occupied property
(1)
28
Unrealised gains on FVOCI investments
(2,379)
(5,174)
Total income taxation charge recognised directly in the Consolidated
Statement of Comprehensive Income
(1,634)
(3,248)
11. PROFIT FOR THE YEAR (COMPANY ONLY)
FBD Holdings plc (Company only) profit for the financial year determined in accordance with IFRS, as
adopted by the European Union, is €74,711,000 (2023: €69,096,000). The Company’s other
comprehensive loss for the financial year is €172,000 (2023 other comprehensive loss: €448,000).
In accordance with section 304 of the Companies Act 2014 the Company is availing of the exemption
from presenting its individual Income Statement to the AGM and from filing it with the Registrar of
Companies.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
235
10 INCOME TAXATION CHARGE (continued)
12. 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. See note 27 for a description of the ‘A’ ordinary shares.
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
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
236
13. CASH AND CASH EQUIVALENTS
2024
2023
€000s
€000s
Short term deposits
60,446
54,701
Money market fund
71,181
71,140
Cash on hand
20,693
16,558
Total cash and cash equivalents
152,320
142,399
14. FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENT
(a) Financial Instruments
2024
2023
€000s
€000s
Financial Assets
At amortised cost:
Cash and cash equivalents
81,139
71,259
Deposits
—
2,885
Other receivables
22,631
17,150
Loans
386
478
At fair value:
Cash and cash equivalents
71,181
71,140
Quoted equity and debt instruments at FVTPL - mandatory
131,619
160,050
Unquoted equity and debt instruments at FVTPL - mandatory
1,148
1,128
Debt instruments at FVOCI - designated
891,956
855,989
Financial Liabilities
At amortised cost:
Other payables
43,066
35,852
Lease liabilities
3,056
3,828
Subordinated debt (note 26)
49,780
49,721
An ECL for 'Debt instruments at FVOCI' of €517,000 (31 December 2023: €512,000) 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 Consolidated OCI with a corresponding charge to a provision for credit losses in
the Consolidated Income Statement.
An ECL of €53,000 (31 December 2023: €142,000) has reduced the carrying value of 'Other
receivables' and an ECL of €8,000 (31 December 2023: €16,000), has reduced the carrying value of
'Loans'.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
237
(b)Fair value measurement
The following table compares the carrying value of financial instruments not held at fair value with the
fair value of those assets and liabilities:
2024
2024
2023
2023
Fair value Carrying value
Fair value Carrying value
€000s
€000s
€000s
€000s
Assets
Loans
463
386
574
478
Financial liabilities
Subordinated debt
48,860
49,780
46,868
49,721
The carrying amount of the following assets and liabilities is considered a reasonable approximation of
their fair value:
a. Cash and cash equivalents
b. Deposits
c. Other receivables
d. Other payables
e. 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 fair value is observable.
Level 1
Fair value measurements derived from quoted prices (unadjusted) in active markets for
identical assets or liabilities.
•
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 fund.
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.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
238
14 FINANCIAL INSTRUMENTS 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 Equity,
Global Impact 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 fair valued by independent
external professional valuers at year end 2024. Group occupied properties have been
valued using the investment method on a vacant possession basis by 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
€000s
Valuation
Technique
Unobservable Input
Range
Properties
25,374
Investment Method
Capitalisation Yield
8.25% - 10.5%
Estimated Rental Value (per square foot)
€7.73 - €46.72
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
239
14 FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENT (continued)
2024
Level 1
Level 2
Level 3
Total
€000s
€000s
€000s
€000s
Assets
Investment property
—
—
11,300
11,300
Property held for own use
—
—
14,074
14,074
Financial assets
Cash and cash equivalents
71,181
—
—
71,181
Investments at fair value through profit or loss - collective
investment schemes
80,656
—
50,963
131,619
Investments at fair value through profit or loss - unquoted
investments
—
—
1,148
1,148
Investments at fair value through Other Comprehensive Income
- quoted debt securities
891,956
—
—
891,956
Total assets
1,043,793
—
77,485
1,121,278
Total liabilities
—
—
—
—
2023
Level 1
Level 2
Level 3
Total
€000s
€000s
€000s
€000s
Assets
Investment property
—
—
11,953
11,953
Property held for own use
—
—
14,074
14,074
Financial assets
Cash and cash equivalents
71,140
—
—
71,140
Investments at fair value through profit or loss - collective
investment schemes
113,258
—
46,792
160,050
Investments at fair value through profit or loss - unquoted
investments
—
—
1,128
1,128
Investments at fair value through Other Comprehensive Income
- quoted debt securities
855,989
—
—
855,989
Total assets
1,040,387
—
73,947
1,114,334
Total liabilities
—
—
—
—
A reconciliation of Level 3 fair value measurement of financial assets is shown in the table below:
2024
2023
€000s
€000s
At 1 January
73,947
59,711
Additions
4,341
19,041
Disposals
(2,996)
—
Impairment
2,298
(4,688)
Unrealised loss recognised in the Consolidated Income Statement
(105)
(117)
At 31 December
77,485
73,947
The Directors review the inputs to assess fair value measurement at least annually to determine the
appropriate level to be disclosed. A sensitivity analysis of the Level 3 assets is completed in note 37(f).
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
240
14 FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENT (continued)
15. OTHER RECEIVABLES
2024
2023
€000s
€000s
Prepayments and accrued income
12,774
8,625
Other debtors
9,322
7,724
Accrued interest and rent
535
801
Total other receivables
22,631
17,150
The Directors consider that the carrying amount of receivables is approximate to their fair value.
All receivables are due within one year and none are past due.
16. 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:
2024
2023
Assets
Liabilities
Net
Assets
Liabilities
Net
€000s
€000s
€000s
€000s
€000s
€000s
Total insurance contracts issued
—
(767,779)
(767,779)
—
(774,921)
(774,921)
Total reinsurance contracts held
75,096
(73)
75,023
97,520
(480)
97,040
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
241
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:
2024
Total insurance contracts issued
Liability for remaining
coverage
Liability for incurred claims
Total
Excluding loss
component
Loss
component
Estimates of
the present
value of
future cash
flows
Risk
Adjustment
€000s
€000s
€000s
€000s
€000s
Insurance contract liabilities as at 01/01
126,971
—
578,490
69,460
774,921
Insurance contract assets as at 01/01
—
—
—
—
—
Net insurance contract liabilities as at 01/01
126,971
—
578,490
69,460
774,921
Insurance revenue
(441,005)
—
—
—
(441,005)
Incurred claims and other directly attributable
expense
—
—
251,289
15,458
266,747
Amortisation of insurance acquisition cash
flows
84,633
—
—
—
84,633
Losses on onerous contracts and reversals of
those losses
—
—
—
—
—
Changes that relate to past service-Changes
in FCF relating to the LIC
—
—
(53,958)
(18,970)
(72,928)
Impairment of assets for insurance acquisition
cash flow
—
—
—
—
—
Reversal of impairment of assets for insurance
acquisition cash flows
—
—
—
—
—
Investment components
—
—
—
—
—
Insurance service expenses
84,633
—
197,331
(3,512)
278,452
Insurance service result
(356,372)
—
197,331
(3,512)
(162,553)
Insurance finance expenses
—
—
13,656
—
13,656
Total amounts recognised in comprehensive
income
(356,372)
—
210,987
(3,512)
(148,897)
Premium received
459,971
—
—
—
459,971
Claims and other directly attributable
expenses paid
—
—
(228,276)
—
(228,276)
Insurance acquisition cash flows
(89,941)
—
—
—
(89,941)
Total cash flows
370,030
—
(228,276)
—
141,754
Net insurance contract liabilities as at 31/12:
Insurance contract liabilities as at 31/12
140,629
—
561,201
65,948
767,778
Insurance contract assets as at 31/12
—
—
—
—
—
Net insurance contract liabilities as at 31/12
140,629
—
561,201
65,948
767,778
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
242
16 INSURANCE AND REINSURANCE CONTRACTS (continued)
2024
Motor insurance contracts issued
Liability for remaining
coverage
Liability for incurred claims
Total
Excluding loss
component
Loss
component
Estimates of
the present
value of
future cash
flows
Risk
Adjustment
€000s
€000s
€000s
€000s
€000s
Insurance contract liabilities as at 01/01
58,033
—
279,702
36,155
373,890
Insurance contract assets as at 01/01
—
—
—
—
—
Net insurance contract liabilities as at 01/01
58,033
—
279,702
36,155
373,890
Insurance revenue
(204,756)
—
—
—
(204,756)
Incurred claims and other directly attributable
expense
—
—
117,104
7,416
124,520
Amortisation of insurance acquisition cash
flows
40,356
—
—
—
40,356
Losses on onerous contracts and reversals of
those losses
—
—
—
—
—
Changes that relate to past service-Changes
in FCF relating to the LIC
—
—
(24,913)
(10,393)
(35,306)
Impairment of assets for insurance acquisition
cash flow
—
—
—
—
—
Reversal of impairment of assets for insurance
acquisition cash flows
—
—
—
—
—
Investment components
—
—
—
—
—
Insurance service expenses
40,356
—
92,191
(2,977)
129,570
Insurance service result
(164,400)
—
92,191
(2,977)
(75,186)
Insurance finance expenses
—
—
6,864
—
6,864
Total amounts recognised in comprehensive
income
(164,400)
—
99,055
(2,977)
(68,322)
Premium received
212,650
—
—
—
212,650
Claims and other directly attributable
expenses paid
—
—
(108,749)
—
(108,749)
Insurance acquisition cash flows
(42,427)
—
—
—
(42,427)
Total cash flows
170,223
—
(108,749)
—
61,474
Net insurance contract liabilities as at 31/12:
Insurance contract liabilities as at 31/12
63,856
—
270,008
33,178
367,042
Insurance contract assets as at 31/12
—
—
—
—
—
Net insurance contract liabilities as at 31/12
63,856
—
270,008
33,178
367,042
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
243
16 INSURANCE AND REINSURANCE CONTRACTS (continued)
2024
Non - motor insurance contracts issued
Liability for remaining
coverage
Liability for incurred claims
Total
Excluding loss
component
Loss
component
Estimates of
the present
value of
future cash
flows
Risk
Adjustment
€000s
€000s
€000s
€000s
€000s
Insurance contract liabilities as at 01/01
68,938
—
298,788
33,305
401,031
Insurance contract assets as at 01/01
—
—
—
—
—
Net insurance contract liabilities as at 01/01
68,938
—
298,788
33,305
401,031
Insurance revenue
(236,249)
—
—
—
(236,249)
Incurred claims and other directly attributable
expense
—
—
134,185
8,042
142,227
Amortisation of insurance acquisition cash
flows
44,277
—
—
—
44,277
Losses on onerous contracts and reversals of
those losses
—
—
—
—
—
Changes that relate to past service-Changes
in FCF relating to the LIC
—
—
(29,045)
(8,577)
(37,622)
Impairment of assets for insurance acquisition
cash flow
—
—
—
—
—
Reversal of impairment of assets for insurance
acquisition cash flows
—
—
—
—
—
Investment components
—
—
—
—
—
Insurance service expenses
44,277
—
105,140
(535)
148,882
Insurance service result
(191,972)
—
105,140
(535)
(87,367)
Insurance finance expenses
—
—
6,792
—
6,792
Total amounts recognised in comprehensive
income
(191,972)
—
111,932
(535)
(80,575)
Premium received
247,321
—
—
—
247,321
Claims and other directly attributable
expenses paid
—
—
(119,527)
—
(119,527)
Insurance acquisition cash flows
(47,514)
—
—
—
(47,514)
Total cash flows
199,807
—
(119,527)
—
80,280
Net insurance contract liabilities as at 31/12:
Insurance contract liabilities as at 31/12
76,773
—
291,193
32,770
400,736
Insurance contract assets as at 31/12
—
—
—
—
—
Net insurance contract liabilities as at 31/12
76,773
—
291,193
32,770
400,736
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
244
16 INSURANCE AND REINSURANCE CONTRACTS (continued)
Insurance contract liabilities as at 01/01
117,798
—
641,074
67,749
826,621
Insurance contract assets as at 01/01
—
—
—
—
—
Net insurance contract liabilities as at 01/01
117,798
—
641,074
67,749
826,621
Insurance revenue
(401,026)
—
—
—
(401,026)
Incurred claims and other directly attributable
expense
—
—
223,350
14,783
238,133
Amortisation of insurance acquisition cash
flows
75,909
—
—
—
75,909
Losses on onerous contracts and reversals of
those losses
—
—
—
—
—
Changes that relate to past service-Changes in
FCF relating to the LIC
—
—
(90,918)
(13,072)
(103,990)
Impairment of assets for insurance acquisition
cash flow
—
—
—
—
—
Reversal of impairment of assets for insurance
acquisition cash flows
—
—
—
—
—
Investment components
—
—
—
—
—
Insurance service expenses
75,909
—
132,432
1,711
210,052
Insurance service result
(325,117)
—
132,432
1,711
(190,974)
Insurance finance expenses
—
—
21,413
—
21,413
Total amounts recognised in comprehensive
income
(325,117)
—
153,845
1,711
(169,561)
Premium received
413,637
—
—
—
413,637
Claims and other directly attributable expenses
paid
—
—
(216,429)
—
(216,429)
Insurance acquisition cash flows
(79,347)
—
—
—
(79,347)
Total cash flows
334,290
—
(216,429)
—
117,861
Net insurance contract liabilities as at 31/12:
Insurance contract liabilities as at 31/12
126,971
—
578,490
69,460
774,921
Insurance contract assets as at 31/12
—
—
—
—
—
Net insurance contract liabilities as at 31/12
126,971
—
578,490
69,460
774,921
2023
Total insurance contracts issued
Liability for remaining
coverage
Liability for incurred claims
Total
Excluding loss
component
Loss
component
Estimates of
the present
value of
future cash
flows
Risk
Adjustment
€000s
€000s
€000s
€000s
€000s
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
245
16 INSURANCE AND REINSURANCE CONTRACTS (continued)
2023
Motor insurance contracts issued
Liability for remaining
coverage
Liability for incurred claims
Total
Excluding loss
component
Loss
component
Estimates of
the present
value of
future cash
flows
Risk
Adjustment
€000s
€000s
€000s
€000s
€000s
Insurance contract liabilities as at 01/01
55,265
—
266,273
31,665
353,203
Insurance contract assets as at 01/01
—
—
—
—
—
Net insurance contract liabilities as at 01/01
55,265
—
266,273
31,665
353,203
Insurance revenue
(188,733)
—
—
—
(188,733)
Incurred claims and other directly attributable
expense
—
—
110,863
7,598
118,461
Amortisation of insurance acquisition cash
flows
37,127
—
—
—
37,127
Losses on onerous contracts and reversals of
those losses
—
—
—
—
—
Changes that relate to past service-Changes
in FCF relating to the LIC
—
—
(10,066)
(3,108)
(13,174)
Impairment of assets for insurance acquisition
cash flow
—
—
—
—
—
Reversal of impairment of assets for insurance
acquisition cash flows
—
—
—
—
—
Investment components
—
—
—
—
—
Insurance service expenses
37,127
—
100,797
4,490
142,414
Insurance service result
(151,606)
—
100,797
4,490
(46,319)
Insurance finance expenses
—
—
9,981
—
9,981
Total amounts recognised in comprehensive
income
(151,606)
—
110,778
4,490
(36,338)
Premium received
192,667
—
—
—
192,667
Claims and other directly attributable
expenses paid
—
—
(97,349)
—
(97,349)
Insurance acquisition cash flows
(38,293)
—
—
—
(38,293)
Total cash flows
154,374
—
(97,349)
—
57,025
Net insurance contract liabilities as at 31/12:
Insurance contract liabilities as at 31/12
58,033
—
279,702
36,155
373,890
Insurance contract assets as at 31/12
—
—
—
—
—
Net insurance contract liabilities as at 31/12
58,033
—
279,702
36,155
373,890
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
246
16 INSURANCE AND REINSURANCE CONTRACTS (continued)
2023
Non-motor insurance contracts issued
Liability for remaining
coverage
Liability for incurred claims
Total
Excluding loss
component
Loss
component
Estimates of
the present
value of
future cash
flows
Risk
Adjustment
€000s
€000s
€000s
€000s
€000s
Insurance contract liabilities as at 01/01
62,533
—
374,801
36,084
473,418
Insurance contract assets as at 01/01
—
—
—
—
—
Net insurance contract liabilities as at 01/01
62,533
—
374,801
36,084
473,418
Insurance revenue
(212,293)
—
—
—
(212,293)
Incurred claims and other directly attributable
expense
—
—
112,487
7,185
119,672
Amortisation of insurance acquisition cash
flows
38,782
—
—
—
38,782
Losses on onerous contracts and reversals of
those losses
—
—
—
—
—
Changes that relate to past service-Changes
in FCF relating to the LIC
—
—
(80,852)
(9,964)
(90,816)
Impairment of assets for insurance acquisition
cash flow
—
—
—
—
—
Reversal of impairment of assets for insurance
acquisition cash flows
—
—
—
—
—
Investment components
—
—
—
—
—
Insurance service expenses
38,782
—
31,635
(2,779)
67,638
Insurance service result
(173,511)
—
31,635
(2,779)
(144,655)
Insurance finance expenses
—
—
11,432
—
11,432
Total amounts recognised in comprehensive
income
(173,511)
—
43,067
(2,779)
(133,223)
Premium received
220,970
—
—
—
220,970
Claims and other directly attributable
expenses paid
—
—
(119,080)
—
(119,080)
Insurance acquisition cash flows
(41,054)
—
—
—
(41,054)
Total cash flows
179,916
—
(119,080)
—
60,836
Net insurance contract liabilities as at 31/12:
Insurance contract liabilities as at 31/12
68,938
—
298,788
33,305
401,031
Insurance contract assets as at 31/12
—
—
—
—
—
Net insurance contract liabilities as at 31/12
68,938
—
298,788
33,305
401,031
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
247
16 INSURANCE AND REINSURANCE CONTRACTS (continued)
The roll-forward of the net asset or liability for reinsurance contracts held showing assets for
remaining coverage and amounts recoverable on incurred claims arising on property and liability
insurance ceded to reinsurers is disclosed in the tables below:
2024
Total reinsurance contracts held
Assets for remaining coverage
Amounts recoverable on
incurred claims
Total
Excluding loss
component
Loss
component
Estimates of
the present
value of
future cash
flows
Risk
Adjustment
€000s
€000s
€000s
€000s
€000s
Reinsurance contracts held that are liabilities
as at 01/01
(502)
—
21
1
(480)
Reinsurance contracts held that are assets as
at 01/01
(3,473)
—
91,547
9,446
97,520
Net reinsurance contracts held as at 01/01
(3,975)
—
91,568
9,447
97,040
Reinsurance expense
(34,082)
—
—
—
(34,082)
Change in amounts recoverable for incurred
claims and other directly attributable expense
—
—
9,684
932
10,616
Changes that relate to past service-changes in
the FCF relating to incurred claims recovery
—
—
(24,389)
(3,600)
(27,989)
Loss-recovery on onerous underlying contracts
and adjustments
—
—
—
—
—
Effect of changes in risk of reinsurers' non-
performance
—
—
2
—
2
Net income/(expense) from reinsurance
contracts held
(34,082)
—
(14,703)
(2,668)
(51,453)
Finance income from reinsurance contracts
held
—
—
2,152
—
2,152
Total amounts recognised in comprehensive
income
(34,082)
—
(12,551)
(2,668)
(49,301)
Premiums paid, net of commission ceded
33,642
—
—
—
33,642
Recoveries from reinsurance
—
—
(6,359)
—
(6,359)
Total cash flows
33,642
—
(6,359)
—
27,283
Net reinsurance contract assets/(liabilities)
held as at 31/12:
Reinsurance contracts held that are liabilities
as at 31/12
(73)
—
—
—
(73)
Reinsurance contracts held that are assets as
at 31/12
(4,341)
—
72,658
6,779
75,096
Net reinsurance contracts held as at 31/12
(4,414)
—
72,658
6,779
75,023
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
248
16 INSURANCE AND REINSURANCE CONTRACTS (continued)
2023
Total reinsurance contracts held
Assets for remaining coverage
Amounts recoverable on
incurred claims
Excluding loss
component
Loss
component
Estimates of
the present
value of
future cash
flows
Risk
Adjustment
Total
€000s
€000s
€000s
€000s
€000s
Reinsurance contracts held that are liabilities
as at 01/01
(631)
—
20
1
(610)
Reinsurance contracts held that are assets as
at 01/01
(2,530)
—
131,797
7,390
136,657
Net Reinsurance contracts held as at 01/01
(3,161)
—
131,817
7,391
136,047
Reinsurance expense
(39,776)
—
—
—
(39,776)
Change in amounts recoverable for incurred
claims and other directly attributable expense
—
—
15,010
1,230
16,240
Changes that relate to past service-changes in
the FCF relating to incurred claims recovery
—
—
(41,962)
826
(41,136)
Loss-recovery on onerous underlying contracts
and adjustments
—
—
—
—
—
Effect of changes in risk of reinsurers' non-
performance
—
—
6
—
6
Net expense from reinsurance contracts
held
(39,776)
—
(26,946)
2,056
(64,666)
Finance expense from reinsurance contracts
held
—
—
4,925
—
4,925
Total amounts recognised in comprehensive
income
(39,776)
—
(22,021)
2,056
(59,741)
Premiums paid, net of commission ceded
38,962
—
—
—
38,962
Recoveries from reinsurance
—
—
(18,228)
—
(18,228)
Total cash flows
38,962
—
(18,228)
—
20,734
Net reinsurance contract assets/(liabilities)
held as at 31/12:
Reinsurance contracts held that are liabilities
as at 31/1
(502)
—
21
1
(480)
Reinsurance contracts held that are assets as
at 31/12
(3,473)
—
91,547
9,446
97,520
Net reinsurance contracts held as at 31/12
(3,975)
—
91,568
9,447
97,040
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
249
16 INSURANCE AND REINSURANCE CONTRACTS (continued)
17. RETIREMENT BENEFIT SURPLUS
Defined Contribution Pension
The Group operates a defined contribution retirement benefit plans for qualifying employees who opt
to join. The assets of the plans are held separately from those of the Group in funds under the control
of Trustees. The Group recognised an expense of €5,052,549 (2023: €4,867,831) relating to these
pension schemes during the year ended 31 December 2024.
Defined Benefit Pension
The Group also operates a legacy funded defined benefit retirement pension scheme for certain
qualifying employees. This scheme was closed to new members in 2005 and closed to future accrual in
2015. The defined benefit pension scheme is administered by a separate Trustee Company that is
legally separated from the entity. The Trustee Company, who is responsible for ensuring compliance
with the Pensions Act 1990 and other relevant legislation, is composed of an independent Trustee and
representatives from both the employers and current and former employees. The Trustees are required
by law and by its Articles of Association to act in the interest of the fund and of all relevant
stakeholders in the scheme, i.e. deferred members, retirees and employers. They are responsible for
the investment policy with regard to the assets of the scheme.
Under the defined benefit pension scheme, qualifying members are entitled to retirement benefits of
1/60th of final salary for each year of service on attainment of a retirement age of 65. A full actuarial
valuation of the defined benefit pension scheme was carried out as at 1 July 2022. This valuation was
carried out using the projected unit credit method. The minimum funding standard was updated to 31
December 2024 by the schemes’ independent and qualified actuary. This confirms that the Scheme
continues to satisfy the minimum funding standard. The next full actuarial valuation of the scheme is
expected to be completed no later than as at 1 July 2025.
The long-term investment objective of the Trustees and the Group is to limit the risk of the assets
failing to meet the liabilities of the scheme over the long term, and to maximise returns consistent
with an acceptable level of risk so as to control the long-term costs of the scheme. To meet these
objectives, the scheme’s assets are primarily invested in bonds with a smaller level of investment in
diversified growth funds and property. These reflect the current long-term asset allocation ranges,
having regard to the structure of liabilities within the scheme. The scheme typically exposes the Group
to actuarial risks such as: investment risk, interest rate risk and longevity risk.
(a) Assumptions used to calculate scheme liabilities
2024
2023
%
%
Inflation rate
2.10
2.20
Pension payment increase
0.00
0.00
Discount rate
3.30
3.20
(b)Mortality Assumptions
2024
2023
Years
Years
The average life expectancy of current and future retirees used in the scheme at
age 65 is as follows:
Male
23.6
23.4
Female
25.6
25.5
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
250
When taking into account members who have not yet retired and those who are currently in receipt of
pensions, the weighted average duration of the expected benefit payments from the scheme is circa
12 years.
As required by IAS 19 'Employee Benefits'; the discount rate is set by reference to yields available at 31
December 2024 on high quality corporate bonds having regard to the duration of the schemes
liabilities. The actual return on the scheme assets for the year was a profit of €507,000 (2023: profit
of €4,220,000).
(c) Consolidated Income Statement
2024
2023
€000s
€000s
Charged to Consolidated Income Statement:
Service cost: employer’s part of current service cost
380
350
Net interest credit
(233)
(308)
Charge to Consolidated Income Statement
147
42
Charges to the Consolidated Income Statement have been included in insurance service expenses,
non-attributable and financial services income and expenses.
(d)Analysis of amount recognised in Group Statement of Comprehensive Income
2024
2023
€000s
€000s
Net actuarial (gains)/losses in the year due to:
Remeasurements in the year due to:
– Changes in financial assumptions
(933)
2,693
– Changes in demographic assumptions
—
—
– Experience adjustments on benefit obligations
(96)
652
Actual return less interest on scheme assets
1,728
(1,737)
Total amount recognised in Consolidated OCI before taxation
699
1,608
Deferred taxation credit
(87)
(201)
Actuarial loss net of deferred taxation
612
1,407
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
251
17 RETIREMENT BENEFIT SURPLUS (continued)
(e) History of experience gains and losses
2024
2023
2022
2021
2020
€000s
€000s
€000s
€000s
€000s
Present value of defined
benefit obligations
61,734
64,204
62,671
86,693
94,927
Fair value of plan assets
68,127
71,248
71,170
97,594
105,776
Net pension asset
(6,393)
(7,044)
(8,499)
(10,901)
(10,849)
Experience to gains/ (losses)
on scheme liabilities
96
(652)
(386)
(520)
1,031
Total amount recognised in
Consolidated OCI before
taxation
(699)
(1,608)
(2,272)
280
2,326
The cumulative charge to the Consolidated Statement of Comprehensive Income is €106,779,000
(2023: €106,080,000).
(f) Assets in scheme at market value
2024
2023
€000s
€000s
Managed bond funds - fair value at quoted prices
52,467
52,788
Managed unit trust funds - fair value at quoted prices
3,960
4,147
Managed infrastructure fund - fair value at quoted prices
7,732
7,224
Managed equity fund - fair value at quoted prices
1,682
4,571
Managed liquidity fund - fair value at quoted prices
1,425
1,732
Cash deposits and other - at amortised cost
861
786
Scheme assets
68,127
71,248
Actuarial value of liabilities
(61,734)
(64,204)
Net pension surplus
6,393
7,044
The assets are part of unitised funds which have a broad geographical and industry type spread with
no significant concentration in any one geographical or industry type.
(g) Movement in net surplus during the year
2024
2023
€000s
€000s
Net surplus in scheme at 1 January
7,044
8,499
Current service cost
(380)
(350)
Employer contributions
195
195
Interest on scheme liabilities
(2,002)
(2,175)
Interest on scheme assets
2,235
2,483
Total amount recognised in Consolidated OCI before taxation
(699)
(1,608)
Net surplus at 31 December
6,393
7,044
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
252
17 RETIREMENT BENEFIT SURPLUS (continued)
(h) Movement on assets and liabilities
2024
2023
€000s
€000s
Assets
Assets in scheme at 1 January
71,248
71,170
Actual return less interest on scheme assets
(1,728)
1,737
Employer contributions
195
195
Interest on scheme assets
2,235
2,483
Benefits paid
(3,823)
(4,337)
Assets in scheme at 31 December
68,127
71,248
Liabilities
Liabilities in scheme at 1 January
64,204
62,671
Experience gains and losses on scheme liabilities
(96)
652
Changes in financial assumptions
(933)
2,693
Changes in demographic assumptions
—
—
Current service cost
380
350
Interest on scheme liabilities
2,002
2,175
Benefits paid
(3,823)
(4,337)
Liabilities in scheme at 31 December
61,734
64,204
The sensitivities regarding the principal assumptions used to measure the scheme liabilities are as
follows:
•
A 1% increase in the discount rate would reduce the value of the scheme liabilities by €6.8 million.
•
A 1% reduction in the discount rate would increase the value of the scheme liabilities by €8.4
million.
•
A 1% increase in inflation would increase the value of the scheme liabilities by €1.9 million.
•
A 1% reduction in inflation would reduce the value of the scheme liabilities by €1.7 million.
•
The effect of assuming all members of the scheme will live one year longer would increase the
scheme’s liabilities by €2.0 million.
•
The current best estimate of 2025 contributions to be made by the Group to the pension fund is
€0.2million (2024: €0.2million).
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
253
17 RETIREMENT BENEFIT SURPLUS (continued)
18. INTANGIBLE ASSETS
Computer Software
€000s
Cost:
At 1 January 2023
18,312
Additions
7,054
Assets under development
9,132
At 31 December 2023
34,498
Additions
3,223
Assets under development
11,549
At 31 December 2024
49,270
Accumulated amortisation:
€000s
At 1 January 2023
4,230
Amortisation charge for the year
2,533
At 31 December 2023
6,763
Amortisation charge for the year
5,718
At 31 December 2024
12,481
Carrying amount
At 31 December 2024
36,789
At 31 December 2023
27,735
The additions during 2024 to Intangible Assets are split 100% internally generated assets (2023: 100%
internally generated assets).
Assets under development at 31 December 2024 mainly consist of spend relating to the development
of the Claims Replacement system and other spend investing in customised software supporting
enterprise IT initiatives. These assets are expected to be operational in 2025 and 2026.
The amortisation charge for the year is included in 'Insurance service expenses' and 'Non-attributable
expenses' in the Consolidated Income Statement.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
254
19. POLICY ADMINISTRATION SYSTEM
The most significant investment by the Group in recent years is in its underwriting policy
administration system. The Group’s policy administration system, TIA, is the principal operating and
core technology platform of the business.
Policy Administration System
€000s
Cost
At 1 January 2023
71,838
Additions
1,401
At 1 January 2024
73,239
Additions
—
At 31 December 2024
73,239
Accumulated amortisation
€000s
At 1 January 2023
48,155
Amortisation charge for the year
7,158
At 1 January 2024
55,313
Amortisation charge for the year
7,176
At 31 December 2024
62,489
Carrying amount
At 31 December 2024
10,750
At 31 December 2023
17,926
There were no additions to the policy administration system in 2024. (2023: 100% internally generated
assets).
The amortisation charge for the year is included in 'Insurance service expenses' in the Consolidated
Income Statement.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
255
20. INVESTMENT PROPERTY
2024
2023
Fair value of investment property
€000s
€000s
At 1 January
11,953
15,052
Net losses from fair value adjustments
(600)
(3,099)
Disposal of investment property
(53)
—
At 31 December
11,300
11,953
The investment property is a commercial rental property in Dublin City Centre. An immaterial holding
of agricultural land in the United Kingdom was sold during 2024.
The investment property was valued at fair value at 31 December 2024 and at 31 December 2023 by
independent external professional valuers, CB Richard Ellis, Valuation Surveyors. The valuation was
prepared in accordance with RICS Valuation – Global Standards 2022 (Red Book) incorporating the
IVSC International Valuation Standards issued January 2022. The valuers confirm that they have
sufficient current local and national knowledge of the particular property market involved and have the
skills and understanding to undertake the valuations competently.
In carrying out the valuation of the property, CB Richard Ellis have considered the impact of
sustainability factors on the property, including physical / climate risk.
The valuation statement received from the external professional valuers state that the valuation has
been prepared on the basis of “Market Value” which they define as “the estimated amount for which a
property should exchange on the date of valuation between a willing buyer and a willing seller in an
arm’s-length transaction after proper marketing wherein the parties had each acted knowledgeably,
prudently and without compulsion”.
The Directors believe that market value, determined by independent external professional valuers, is
not materially different to the fair value.
There was a net decrease in the fair value in 2024 of €600,000 (2023 decrease: €3,099,000).
The rental income earned by the Group from its investment property amounted to €578,850 (2023:
€578,850). Direct operating costs associated with investment property amounted to €636,841 (2023:
€699,762).
The historical cost of investment property is as follows:
2024
2023
€000s
€000s
Historical cost at 1 January
22,053
22,053
Disposal of investment property
(53)
—
Historical cost at 31 December
22,000
22,053
Maturity analysis - undiscounted non-cancellable operating lease
receivables
2024
2023
€000s
€000s
Less than one year
579
579
One to five years
2,315
2,315
More than five years
96
675
Maturity analysis - undiscounted non-cancellable operating lease receivables
2,990
3,569
Fair value hierarchy disclosures required by IFRS13 Fair Value Measurement have been included in note
14, Financial Instruments and Fair Value Measurement.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
256
21. LEASES
Leases held are property leases for office space for the Group’s branches and leases for computer
equipment. The Group holds a number of property leases with remaining terms ranging from one to
twenty years. None of the Group’s leases have options for extensions or to purchase. There are no
contingent rents payable and all lease payments are fixed and at market rates at inception or renewal
of the lease. Additional information on the Group’s leases is detailed below:
Right of use assets
2024
2023
€000s
€000s
Balance at 1 January
3,503
4,290
Depreciation charge for the year
(762)
(787)
Balance at 31 December
2,741
3,503
Lease liabilities
Maturity analysis - contractual undiscounted cash flows
2024
2023
€000s
€000s
Less than one year
(924)
(884)
One to five years
(1,820)
(2,332)
More than five years
(1,129)
(1,490)
Total undiscounted lease liabilities at 31 December
(3,873)
(4,706)
Contractual discounted cash flows
Current
(516)
(618)
Non - current
(2,540)
(3,210)
Lease liabilities included in the statement of financial position at 31 December
(3,056)
(3,828)
Amounts recognised in profit or loss
2024
2023
€000s
€000s
Depreciation charge on right of use assets (included in insurance service expenses)
(762)
(787)
Interest on lease liabilities (included in insurance service expenses)
(151)
(185)
Expenses related to short-term leases (included in insurance service expenses)
(50)
(50)
Income from sub-leasing right of use assets (included in financial services income
and expense)
79
79
Total cash outflows recognised in the period in relation to leases were €924,000 (2023: €955,000).
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
257
22. PROPERTY, PLANT AND EQUIPMENT
Property held
for own use
Computer
Equipment
Fixtures &
Fittings
Total
€000s
€000s
€000s
€000s
Cost or valuation
At 1 January 2023
24,224
100,044
26,544
150,812
Additions
—
817
1,371
2,188
At 31 December 2023
24,224
100,861
27,915
153,000
Additions
—
1,883
1,387
3,270
Assets under development
—
1,336
—
1,336
At 31 December 2024
24,224
104,080
29,302
157,606
Comprising:
At cost
—
104,080
29,302
133,382
At valuation
24,224
—
—
24,224
At 31 December 2024
24,224
104,080
29,302
157,606
Accumulated depreciation and revaluation
Property held
for own use
Computer
Equipment
Fixtures &
Fittings
Total
€000s
€000s
€000s
€000s
At 1 January 2023
8,240
97,722
22,104
128,066
Depreciation charge for the year
118
1,269
934
2,321
Revaluation through the Consolidated Income Statement
1,708
—
—
1,708
Revaluation through the statement of comprehensive income
84
—
—
84
At 31 December 2023
10,150
98,991
23,038
132,179
Depreciation charge for the year
105
1,364
924
2,393
Revaluation through the Consolidated Income Statement
(100)
—
—
(100)
Revaluation through the statement of comprehensive income
(5)
—
—
(5)
At 31 December 2024
10,150
100,355
23,962
134,467
Carrying amount
At 31 December 2024
14,074
3,725
5,340
23,139
At 31 December 2023
14,074
1,870
4,877
20,821
Property held for own use
Properties held for own use at 31 December 2024 and 2023 were valued at fair value which is
determined by independent external professional surveyors CB Richard Ellis, Valuation Surveyors. CB
Richard Ellis confirm that the properties have been valued in accordance with RICS Valuation – Global
Standards 2022 (Red Book) incorporating the IVSC International Valuation Standards issued January
2022.
In carrying out the valuation of the properties, CB Richard Ellis have considered the impact of
sustainability factors on the properties, including physical/climate risk.
The valuation report states that the valuations have been prepared on the basis of “Market Value”
which is defined in the report as “the estimated amount for which an asset or liability should exchange
on valuation date between a willing buyer and a willing seller in an arm’s-length transaction, after
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
258
proper marketing where the parties had each acted knowledgeably, prudently and without
compulsion”. The report also states that the market value “has been primarily derived using
comparable recent market transactions on arm’s length terms”.
The Directors believe that the market value, determined by independent professional valuers is not
materially different to fair value.
Had the properties been carried at historical cost less accumulated depreciation and accumulated
impairment losses, their carrying amount would have been as follows:
2024
2023
€000s
€000s
Property held for own use
13,902
14,012
Fair value hierarchy disclosures required by IFRS13 Fair Value Measurement have been included in note
14, Financial Instruments and Fair Value Measurement.
23. DEFERRED TAXATION (LIABILITY) / ASSET
Retirement
benefit
surplus
Unrealised
gains on
investments
& loans
Insurance/
Reinsurance
finance
reserve
Revaluation
surplus on
investment
properties
Losses
carried
forward
Other
temporary
differences
Total
€000s
€000s
€000s
€000s
€000s
€000s
€000s
At 1 January 2023
(1,060)
9,974
(2,999)
(1,387)
329
(1,228)
3,629
Credited/(debited) to the
Consolidated Statement of
Comprehensive Income
201
(5,174)
1,697
—
—
28
(3,248)
(Debited)/credited to the
Consolidated Income
Statement
(19)
—
—
—
15
116
112
At 31 December 2023
(878)
4,800
(1,302)
(1,387)
344
(1,084)
493
Credited/(debited) to the
Consolidated Statement of
Comprehensive Income
87
(2,379)
659
—
—
(1)
(1,634)
(Debited)/credited to the
Consolidated Income
Statement
(6)
—
—
—
(344)
931
581
At 31 December 2024
(797)
2,421
(643)
(1,387)
—
(154)
(560)
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
259
22 PROPERTY, PLANT AND EQUIPMENT (continued)
24. OTHER PAYABLES
(a) GROUP
2024
2023
€000s
€000s
Amounts falling due within one year:
Payables and accruals
41,229
33,937
PAYE/PRSI
1,837
1,915
Total payables
43,066
35,852
(b)COMPANY
2024
2023
€000s
€000s
Amounts falling due within one year:
Payables and accruals
7,105
2,801
Total payables
7,105
2,801
Other payables includes ESG initiatives of €4,000,000. €2,500,000 for FBD's contribution for the ESG
initiative to develop the Padraig Walsh Centre for Sustainable Animal and Grassland Research, and
€1,500,00 for FBD's ESG investment in a new agricultural science centre at UCD Lyons Farm.
25. OTHER PROVISIONS
(a) GROUP
MIBI Levy
MIICF
Contribution
Consequential
Payments
State
Subsidies
ESG
Initiative
Total
€000s
€000s
€000s
€000s
€000s
€000s
Balance at 1 January 2023
6,195
3,642
1,266
—
—
11,103
Provided in the year
5,751
3,854
26
6,200
2,500
18,331
Net amounts paid
(5,439)
(3,642)
(270)
—
(9,351)
Balance at 31 December 2023
6,507
3,854
1,022
6,200
2,500
20,083
Provided for/(released) in the year
5,675
2,132
(712)
(400)
—
6,695
Net amounts paid
(5,826)
(3,855)
(199)
—
—
(9,880)
Reclassification to accruals
—
—
—
—
(2,500)
(2,500)
Balance at 31 December 2024
6,356
2,131
111
5,800
—
14,398
MIBI Levy
The Group’s share of the Motor Insurers’ Bureau of Ireland “MIBI” levy for 2024 is based on its
estimated market share in the current year at the Statement of Financial Position date. The total
amount provided for at year end is paid in equal instalments throughout the following year.
MIICF Contribution
The Group’s contribution to the Motor Insurers’ Insolvency Compensation Fund “MIICF” for 2024 is
based on 1% of its Motor Gross Written Premium from 1 January 2024 (previously 2%). Payment is
expected to be made in the first half of 2025.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
260
Consequential Payments
The balance of the provision of €111,000 is based on the best estimate of the Consequential Payments
provision in respect of the FSPO decisions and payments are expected to be made to impacted
policyholders before the end of 2025.
State Subsidies
The Group has included a provision of €5,800,000 in the financial statements in respect of its current
estimate of the cost of a constructive obligation arising from the deduction of State subsidies from
Business Interruption claims payments following Covid-19 closures. The best estimate of the
constructive obligation is based on the current information available to the Group. Payment to the
State is expected to be made in the coming year.
ESG Initiative
In 2023, the Group included a provision of €2,500,000 in the financial statements for FBD's
contribution for the ESG initiative to develop the Padraig Walshe Centre for Sustainable Animal and
Grassland Research. Following the approval of planning permission and the confirmation of timing and
amount certainty, the liability has been reclassified to an accrual in 2024. This amount is expected to
be settled in the next financial year.
(b)COMPANY
ESG Initiative
Total
€000s
€000s
Balance at 1 January 2023
—
—
Provided in the year
2,500
2,500
Net amounts paid
—
—
Balance at 31 December 2023
2,500
2,500
Reclassification to accruals
(2,500)
(2,500)
Net amounts paid
—
—
Balance at 31 December 2024
—
—
ESG Initiative
In 2023, the Company included a provision of €2,500,000 in the financial statements for FBD's
contribution for the ESG initiative to develop the Padraig Walshe Centre for Sustainable Animal and
Grassland Research. Following the approval of planning permission and the confirmation of timing and
amount certainty, the liability has been reclassified to an accrual in 2024. This amount is expected to
be settled in the next financial year.
26. SUBORDINATED DEBT
2024
2023
€000s
€000s
Balance at 1 January
49,721
49,662
Amortised during the year
59
59
Balance at 31 December
49,780
49,721
The amount relates to €50,000,000 Callable Dated Deferrable Subordinated Notes due in 2028. The
coupon rate on the notes is 5%. Finance costs recognised in the Consolidated Income Statement total
€2,556,000 in 2024 (2023: €2,559,000). Finance costs are made up of interest costs associated with
the subordinated notes totalling €2,500,000 (2023: €2,500,000) which were incurred and recognised
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
261
25 OTHER PROVISIONS (continued)
in the year, amortisation of capitalised borrowing costs in the year of €59,000 (2023: €59,000) and
adjusted for accrued amounts at each year end, €nil in 2024 (2023: €nil).
27. 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 (see note 30). 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 of the year (and
the maximum number held during the year) was 164,005 (2023: 164,005). No ordinary shares were re-
issued from treasury shares 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.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
262
26 SUBORDINATED DEBT (continued)
28. CAPITAL RESERVES
(a) GROUP
Share
premium
Capital
conversion
reserve
Capital
redemption
reserve
Share-based
payment
reserve
Total
€000s
€000s
€000s
€000s
€000s
Balance at 1 January 2023
8,209
1,627
4,426
15,930
30,192
Issue of ordinary shares1
3,493
—
—
(1,846)
1,647
Recognition of share-based payments
—
—
—
2,640
2,640
Balance at 31 December 2023
11,702
1,627
4,426
16,724
34,479
Issue of ordinary shares 1
4,526
—
—
(2,876)
1,650
Recognition of share-based payments
—
—
—
3,610
3,610
Purchase and cancellation of own shares
—
—
190
—
190
Transfer of share-based payment reserve to
retained earnings2
—
—
—
(11,997)
(11,997)
Balance at 31 December 2024
16,228
1,627
4,616
5,461
27,932
(b)COMPANY
Share
premium
Capital
conversion
reserve
Capital
redemption
reserve
Share-based
payment
reserve
Total
€000s
€000s
€000s
€000s
€000s
Balance at 1 January 2023
8,209
1,627
4,426
15,930
30,192
Issue of ordinary shares1
3,493
—
—
(1,846)
1,647
Recognition of share-based payments
—
—
—
2,640
2,640
Balance at 31 December 2023
11,702
1,627
4,426
16,724
34,479
Issue of ordinary shares 1
4,526
—
—
(2,876)
1,650
Recognition of share-based payments
—
—
—
3,610
3,610
Purchase and cancellation of own shares
—
—
190
—
190
Transfer of share-based payment reserve to
retained earnings2
—
—
—
(11,997)
(11,997)
Balance at 31 December 2024
16,228
1,627
4,616
5,461
27,932
1In 2023 and 2024 new ordinary shares were allotted to employees of FBD Holdings plc as part of the performance share awards scheme.
2 In 2024, a transfer from share-based payment reserves to retained earnings was completed of €11,997,000, representing historical awards vested in prior
periods.
The capital conversion reserve arose on the redenomination of Company’s ordinary shares, 14% non-
cumulative preference shares and 8% non-cumulative preference shares of IR£0.50 each into ordinary
shares, 14% non-cumulative preference shares and 8% non-cumulative preference shares of 63.4869
cent. Each such share was then renominalised to an ordinary or a non-cumulative preference share of
€0.60, an amount equal to the reduction in the issued share capital being transferred to the capital
conversion reserve fund.
Capital redemption reserve arose on the buyback and cancellation of issued share capital.
Share-based payment reserve arose on the recognition of share-based payments.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
263
29. OTHER RESERVES
Revaluation
reserve
FVOCI
reserve
Insurance/
Reinsurance
finance
reserve
Total
€000s
€000s
€000s
€000s
Balance at 1 January 2023
755
(69,827)
20,985
(48,087)
Other Comprehensive (expense)/income
(55)
36,219
(11,881)
24,283
Balance at 31 December 2023
700
(33,608)
9,104
(23,804)
Balance at 1 January 2024
700
(33,608)
9,104
(23,804)
Other Comprehensive income/(expense)
3
16,653
(4,611)
12,045
Balance at 31 December 2024
703
(16,955)
4,493
(11,759)
The reconciliation of cumulative amounts of the fair value reserve within Consolidated OCI, for
investment assets measured at FVOCI relating to groups of contracts that the Group has applied the
retrospective approach to, as at the IFRS 17 transition date, is provided in the table below.
2024
2023
At transition Post transition
Total
At transition Post transition
Total
€000s
€000s
€000s
€000s
€000s
€000s
Opening FVOCI reserve
(31,412)
(2,196)
(33,608)
(55,736)
(14,091)
(69,827)
Net movement during period
18,392
34
18,426
25,824
13,600
39,424
Net movement reclassified
to profit or loss on disposal
606
—
606
1,975
(6)
1,969
Income tax relating to these
items
(2,375)
(4)
(2,379)
(3,475)
(1,699)
(5,174)
Closing FVOCI reserve
(14,789)
(2,166)
(16,955)
(31,412)
(2,196)
(33,608)
30. PREFERENCE SHARE CAPITAL
2024
2023
Number
€000s
€000s
Authorised:
At the beginning and the end of the year
14% Non-cumulative preference shares of €0.60 each
1,340,000
804
804
8% Non-cumulative preference shares of €0.60 each
12,750,000
7,650
7,650
Total authorised
8,454
8,454
Issued and fully paid:
At the beginning and the end of the year
14% Non-cumulative preference shares of €0.60 each
1,340,000
804
804
8% Non-cumulative preference shares of €0.60 each
3,532,292
2,119
2,119
Total issued and fully paid
2,923
2,923
The rights attaching to each class of share capital are set out in the Company’s Articles of Association.
In the event of the Group and Company being wound up, the holders of the 14% non-cumulative
preference shares rank ahead of the holders of the 8% non-cumulative preference shares, who in turn,
rank ahead of the holders of both the ‘A’ ordinary shares of €0.01 each and the holders of the ordinary
shares of €0.60 each.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
264
31. 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
35,896
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 Annual
General Meeting to be held on 8 May 2025. The proposed dividend has not been included as a liability
in the Consolidated Statement of Financial Position as at 31 December 2024.
32. PRINCIPAL SUBSIDIARIES
(a) Subsidiaries
Nature of Operations
% Owned
FBD Insurance plc
Regulated non-life insurance undertaking
100 %
FBD Insurance Group Limited
Regulated intermediary: general insurance, life assurance, investments and
pensions
100 %
FBD Corporate Services Limited
Employee services company
100 %
The Registered Office of each of the above subsidiaries is at FBD House, Bluebell, Dublin 12.
All shareholdings are in the form of ordinary shares.
The financial year end for the Group’s principal subsidiaries is 31 December.
The Group has carried out an impairment assessment of the parent company's investment in
subsidiaries which indicated that no impairment of this asset was required.
FBD Holdings plc is an Irish registered public limited company. The Company’s ordinary shares of €0.60
each are listed and traded on Euronext Dublin.
All individual subsidiary’s financial statements are prepared in accordance with FRS 102, the financial
reporting standard applicable in the UK and Republic of Ireland with the exception of FBD Insurance
plc whose financial statements are prepared in accordance with International Financial Reporting
Standards (“IFRSs”) adopted by the European Union.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
265
33. CAPITAL COMMITMENTS
There are no capital commitments at the financial year end (2023: €nil).
34. CONTINGENT LIABILITIES AND CONTINGENT ASSETS
There were no contingent liabilities or contingent assets at either 31 December 2024 or 31 December
2023.
35. SHARE-BASED PAYMENTS
FBD Group Performance Share Plan
Conditional awards of ordinary shares are made under the FBD Group Performance Share Plan ("LTIP").
The LTIP was last approved by the shareholders of FBD Holdings plc at the 2018 AGM. Conditional
awards are solely based on non-market conditions. The extent to which the non-market conditions
have been met and any award (or part of an award) has therefore vested will be determined in due
course by the Remuneration Committee of the Board of FBD Holdings plc. Further detail on the LTIP is
available within the Report on Directors’ Remuneration on pages 74 to 94.
Accounting charge for share-based payments
Grant date
Number
outstanding
at 1 January
2024
Granted
during year
Dividends
(Under)/
Outperformance
Forfeited
during year
Vested
during year
Number
outstanding at
31 December
2024
Performance
Period
Earliest
vesting date
25.03.2021 LTIP
349,329
—
65,601
(58,513)
—
(356,417)
— 2021-2023
Mar-24
06.04.2022 LTIP
237,215
—
—
—
(2,676)
—
234,539 2022-2024
Mar-25
04.04.2023 LTIP
191,652
—
—
—
(3,946)
—
187,706 2023-2025
Mar-26
12.04.2024 LTIP
—
234,305
—
—
(2,565)
—
231,740 2024-2026
Mar-27
Total
778,196
234,305
65,601
(58,513)
(9,187)
(356,417)
653,985
Grant date
Vesting period
(years)
Number
outstanding at
31 December 2024
% of shares
expected to
vest
Share price at
grant date
Fair value of
share award at
grant date
2024
2023
%
€
€
€000s
€000s
24.04.2020 LTIP
3
—
83 %
6.12
6.12
—
160
25.03.2021 LTIP
3
—
83 %
6.89
6.89
279
1,024
06.04.2022 LTIP
3
234,539
100 %
9.90
9.90
1,218
870
04.04.2023 LTIP
3
187,706
95 %
13.63
13.63
1,347
586
12.04.2024 LTIP
3
231,740
99 %
13.45
13.45
766
—
Total
653,985
3,610
2,640
During the financial year 356,417 shares of the March 2021 award vested, with a value of €4,740,346.
The Directors estimate, 100% of the April 2022 awards will vest, 95% of the April 2023 awards will
vest and 99% of the April 2024 awards will vest.
36. TRANSACTIONS WITH RELATED PARTIES
Farmer Business Developments plc and FBD Trust have a substantial shareholding in the Group at 31
December 2024. Details of their shareholdings are set out in the Report of the Directors on page 37.
Both companies have subordinated debt investment in the Group. Farmer Business Developments plc
holds a €21.0m investment and FBD Trust holds a €12.0m investment. During 2024 interest payments
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
266
of €1.1m and €0.6m were made to Farmer Business Developments plc and FBD Trust respectively.
Please refer to note 26 for further details.
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 Report on Directors’ Remuneration.
At 31 December 2024 KMP had loans to the value of €12,600 payable to 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).
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
267
36 TRANSACTIONS WITH RELATED PARTIES (continued)
37. FINANCIAL RISK MANAGEMENT
(a) Capital management risk
The Group is committed to managing its capital to ensure it is adequately capitalised at all times and
to maximise returns to shareholders. The capital of the Group comprises of issued capital, reserves and
retained earnings as detailed in notes 27 to 30. The Group has an Investment Committee, a Pricing &
Underwriting Committee, a Capital Management Forum, an Audit Committee, a Reserving Committee
and Board and Executive Risk Committees, all of which assist the Board in the identification and
management of exposures and capital.
The Group maintained its capital position and complied with all regulatory solvency margin
requirements throughout both the year 2024 and the prior year. In 2024, the Group maintained its
Solvency Capital Requirement (SCR) coverage above its target range of 150-170% of SCR.
An experienced Actuarial team is in place with policies and procedures to ensure that Solvency II
Technical Provisions are calculated in an appropriate manner and represent a best estimate. Technical
Provisions are internally peer reviewed every quarter and subject to external peer review every two
years.
An approved Reinsurance Programme is in place to minimise the solvency impact of Catastrophe
events to the Group.
The annual 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.
The Group ensures that the implications on the capital position is considered as part of the strategic
planning process. The capital position is also considered as part of the strategic decision process.
On at least an annual basis, a target range for its SCR Ratio, developed as part of the annual planning/
budgeting process, is approved by the Board as part of the Risk Appetite Statements in the Risk
Appetite Framework.
The Group also devotes considerable resources to managing its relationships with the providers of
capital within the capital markets, for example, existing and potential shareholders, financial
institutions, stockbrokers and corporate finance houses.
(b)Liquidity risk
The Group is exposed to daily calls on its cash resources, mainly for claims payments. The Group
manages liquidity risk by continuously monitoring forecast and actual cash flows and ensuring that the
maturity profile of its financial assets is well matched to the maturity profile of its liabilities and
maintaining a minimum cash amount available on short term access at all times.
The following tables provide a maturity analysis of the Group's insurance and reinsurance contracts,
which reflects the dates on which the cashflows are expected to occur. Liabilities for remaining
coverage measured under the PAA have been excluded from this analysis.
2024
Up to 1
year
1-2 years
2-3 years
3-4 years
4-5 years
5+ years
Total
€000s
€000s
€000s
€000s
€000s
€000s
€000s
Gross LIC present value of
future cashflows
197,705
122,576
85,150
58,973
38,752
58,045
561,201
Reinsurance LIC present value
of future cashflows
(26,761)
(11,161)
(8,724)
(6,578)
(4,959)
(14,475)
(72,658)
2023
Up to 1
year
1-2 years
2-3 years
3-4 years
4-5 years
5+ years
Total
€000s
€000s
€000s
€000s
€000s
€000s
€000s
Gross LIC present value of
future cashflows
208,514
115,054
81,578
60,198
42,084
71,062
578,490
Reinsurance LIC present value
of future cashflows
(36,262)
(13,276)
(11,189)
(8,036)
(5,395)
(17,410)
(91,568)
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
268
The following tables summarise the maturity profile of financial assets and liabilities of the Group
based on remaining undiscounted contractual cash flows, including interest receivable:
2024
Up to
1 year
1-2
years
2-3
years
3-4
years
4-5
years
5+
years
Total
€000s
€000s
€000s
€000s
€000s
€000s
€000s
Cash and cash equivalents
152,320
—
—
—
—
—
152,320
Equity and debt instruments at
FVTPL
80,654
—
—
—
—
52,113
132,767
Debt instruments at FVOCI
151,012
211,172
163,356
136,521
80,765
248,469
991,295
Deposits
—
—
—
—
—
—
—
Loans and other receivables
23,017
—
—
—
—
—
23,017
Other payables
43,066
—
—
—
—
—
43,066
Other provisions
14,398
—
—
—
—
—
14,398
Subordinated debt
2,500
2,500
2,500
2,500
50,000
—
60,000
2023
Up to
1 year
1-2
years
2-3
years
3-4
years
4-5
years
5+
years
Total
€000s
€000s
€000s
€000s
€000s
€000s
€000s
Cash and cash equivalents
142,399
—
—
—
—
—
142,399
Equity and debt instruments at
FVTPL
113,257
—
—
—
—
47,921
161,178
Debt instruments at FVOCI
90,819
147,730
224,171
160,665
125,548
209,771
958,704
Deposits
2,933
—
—
—
—
—
2,933
Loans and other receivables
17,786
—
—
—
—
—
17,786
Other payables
35,852
—
—
—
—
—
35,852
Other provisions
20,083
—
—
—
—
—
20,083
Subordinated debt
2,500
2,500
2,500
2,500
2,500
50,000
62,500
The tables below summarises the expected utilisation or settlement of assets and liabilities:
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
269
37 FINANCIAL RISK MANAGEMENT (continued)
2024
2023
No more than
12 months
More than
12 months
Total
No more than
12 months
More than
12 months
Total
€000s
€000s
€000s
€000s
€000s
€000s
Financial assets:
379,472
820,588
1,200,060
345,903
834,176
1,180,079
Cash and cash equivalents
152,320
—
152,320
142,399
—
142,399
Equity and debt instruments
at FVTPL
80,654
52,113
132,767
113,257
47,921
161,178
Debt instruments at FVOCI
123,481
768,475
891,956
69,734
786,255
855,989
Deposits
—
—
—
2,885
—
2,885
Loans and receivables
23,017
—
23,017
17,628
—
17,628
Reinsurance contract
assets:
24,342
50,754
75,096
35,512
62,008
97,520
Reinsurance contract assets
24,342
50,754
75,096
35,512
62,008
97,520
Insurance/Reinsurance
contract liabilities:
361,639
406,213
767,852
360,277
415,124
775,401
Insurance contract liabilities
361,566
406,213
767,779
359,797
415,124
774,921
Reinsurance contract
liabilities
73
—
73
480
—
480
Financial liabilities:
59,964
47,280
107,244
58,435
47,221
105,656
Other payables
43,066
—
43,066
35,852
—
35,852
Other provisions
14,398
—
14,398
20,083
—
20,083
Subordinated debt
2,500
47,280
49,780
2,500
47,221
49,721
(c) Market risk
The Group has invested in term deposits, listed debt securities, investment property and externally
managed collective investment schemes which provide exposure to a broad range of asset classes.
These investments are subject to market risk, whereby the value of the investments may fluctuate as a
result of changes in market prices, changes in market interest rates or changes in the foreign exchange
rates of the currency in which the investments are denominated. The extent of the exposure to market
risk is managed by the formulation of, and adherence to, an Investment Policy incorporating clearly
defined investment limits and rules, as approved annually by the Board of Directors, and employment
of appropriately qualified and experienced personnel and external investment management specialists
to manage the Group’s investment portfolio. The overriding philosophy of the Investment Policy is to
protect and safeguard the Group’s assets and to ensure its capacity to underwrite is not put at risk.
Interest rate and spread risk
Interest rate and spread risk arises primarily from the Group’s investments in listed debt securities and
deposits and their movement relative to the Group’s liabilities. The Group reviews its exposure to
interest rate and spread risk on a quarterly basis by conducting an asset liability matching analysis. As
part of this analysis it monitors the movement in assets minus liabilities for defined interest rate
stresses and ensures that they remain within set limits as laid out in its Asset Liability Management
Policy. Similar monitoring is done for spread risk.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
270
37 FINANCIAL RISK MANAGEMENT (continued)
At 31 December 2024, the Group held the following deposits and listed debt securities:
2024
2023
Market
Value
Weighted
average
interest rate
Market
Value
Weighted
average
interest rate
€000s
%
€000s
%
Time to maturity
In one year or less
123,481
1.08
72,619
1.14
In more than one year, but not more than two
years
190,199
1.01
126,160
1.07
In more than two years, but not more than
three years
158,842
1.12
206,202
1.05
In more than three years, but not more than
four years
116,887
1.44
152,803
1.12
In more than four years, but not more than five
years
61,799
1.99
113,674
1.46
More than five years
240,748
2.71
187,416
2.22
Total
891,956
858,874
Equity price risk
The Group is subject to equity price risk due to its holdings in collective investment schemes which
invest in listed equities.
The amounts exposed to equity price risk at the reporting date are:
2024
2023
€000s
€000s
Equity exposure
33,840
47,982
Foreign currency risk
The Group does not directly hold investment assets in foreign currencies; however, it does have
exposure to non-euro exchange rate fluctuations through its collective investment scheme holdings.
The underlying exposure to foreign currency is as follows.
Assets
2024
2023
€000s
€000s
Emerging Markets*
12,169
15,585
USD
50,964
46,792
*The Emerging Markets currency exposure is achieved through the collective investment schemes and is highly diversified. The largest
exposure to any one currency as at 31 December 2024 was €1.3m in Hong Kong Dollars (2023: €1.7m in Hong Kong Dollars)
The Group did not directly hold any derivative instruments at 31 December 2024 or 31 December
2023.
(d)Credit risk
Credit risk is the risk of loss in the value of financial assets due to counterparties failing to meet all or
part of their obligations.
Financial assets are graded according to current credit ratings issued by the main credit rating
agencies. Investment grade financial assets are classified within the range of AAA to BBB ratings.
Financial assets which fall outside this range are classified as speculative grade. All of the Group’s
bank deposits are with financial institutions which have a minimum A- rating. The Group holds the
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
271
37 FINANCIAL RISK MANAGEMENT (continued)
following listed government bonds (average credit rating: A) and listed corporate bonds (average
credit rating: A-), with the following credit profile:
2024
2023
Market Value
Weighted
Average
Duration
Market value
Weighted
Average
Duration
€000s
€000s
Government bonds
AAA
—
0.0
15,489
—
AA+
26,701
1.3
25,975
2.3
AA
11,139
7.0
50,969
3.2
AA-
72,605
3.0
51,386
4.5
A-
43,773
3.6
43,549
0.0
BBB+
65,628
2.4
64,705
3.3
BBB
—
0.0
—
—
BBB-
29,706
1.9
29,009
2.8
Total
249,552
2.8
281,082
3.3
Corporate Bonds
AAA
16,352
6.0
14,852
5.7
AA+
8,804
3.6
8,684
4.5
AA
10,050
4.1
8,391
5.1
AA-
47,452
4.6
41,358
4.9
A+
88,651
3.5
90,527
4.1
A
70,503
3.4
55,764
3.0
A-
152,782
3.1
132,116
3.7
BBB+
164,631
3.3
119,510
3.4
BBB
69,806
2.2
74,035
2.6
BBB-
13,373
1.1
29,670
1.6
Total
642,404
3.3
574,907
3.6
The Group’s IFRS 9 policy does not require calculation of an ECL for ‘Cash and cash equivalents’ and
‘Deposits’ due to their low risk of default and low risk profile.
All of the Group’s current reinsurers either have a credit rating of A- or better. The Group has assessed
these credit ratings as being satisfactory in diminishing the Group’s exposure to the credit risk of its
reinsurance receivables. At 31 December 2024, the maximum balance owed to the Group by an
individual reinsurer, including reinsurers’ share of insurance contract liabilities not yet called, was
€7,316,000 (2023: €12,685,000).
The carrying amount of financial assets recorded in the financial statements, net of any allowances for
losses, represents the Group’s most significant exposure to credit risk. There are no financial assets
past due but not impaired.
All other receivables are due within one year and none are past due. The carrying value is net of any
allowance for expected credit losses (ECL).
Impairment assessment
Debt instruments at FVOCI
The Group monitors FVOCI investments in order to determine whether an investment is subject to 12
month ECL (12-month ECL) or Lifetime ECL (LTECL).
At initial recognition, a debt instrument is considered at stage 1 and a loss allowance must be made
immediately by recognising the 12-month ECL. The 12-month ECL is the expected credit loss that
would result from a default event occurring within the next 12 months.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
272
37 FINANCIAL RISK MANAGEMENT (continued)
An increase in credit risk is assessed by a significant increase in the probability of default of a bond,
taking into account reasonable and supportable information including forward-looking data. The credit
risk is always considered as significantly increased if any contractual payments are more than 30 days
past due. In case of a significant increase in credit risk (stage 2), the loss has to reflect the lifetime
ECL which are the probability-weighted credit losses occurring over the entire lifetime of the bond.
If the bond is more than 90 days past due or if there is other evidence of financial distress (for
example, a legal bankruptcy or default), the instrument is classified as credit-impaired (stage 3) which
means the impairment loss has to reflect the lifetime ECL as in stage 2.
All investments are high grade and the ECL applied is the 12-month ECL, as there has been no
significant increase in risk in any of the periods.
The ECL for FVOCI debt securities does not change the carrying value of these investments in the
Statement of Financial Position, the loss allowance is instead recognised in the Consolidated Income
Statement with corresponding credit to Other Comprehensive Income.
The table below shows an analysis of changes in the fair value of FVOCI investments and the
corresponding ECL:
Carrying Value
Related 12m ECL
Government
Bonds
Corporate
Bonds
Total
Government
Bonds
Corporate
Bonds
Total
€000s
€000s
€000s
€000s
€000s
€000s
Balance at 1 January 2024
281,082
574,907
855,989
(253)
(259)
(512)
Originated or purchased
—
126,185
126,185
(5)
(29)
(34)
Matured or sold
(20,000)
(87,791)
(107,791)
3
51
54
Remeasurement
(11,530)
29,103
17,573
(13)
(12)
(25)
Balance at 31 December
2024
249,552
642,404
891,956
(268)
(249)
(517)
Balance at 1 January 2023
271,012
562,853
833,865
(201)
(802)
(1,003)
Originated or purchased
28,321
107,051
135,372
(4)
(20)
(24)
Matured or sold
(29,000)
(122,277)
(151,277)
9
320
329
Remeasurement
10,749
27,280
38,029
(57)
243
186
Balance at 31 December
2023
281,082
574,907
855,989
(253)
(259)
(512)
Other receivables and loans
The Group recognises a loss allowance for expected credit losses that reduces the carrying value of
the Other receivables and Loans. Expected credit losses is a forward looking measure of impairment
calculated on a probability of credit losses basis. An ECL of €53,000 (2023: €142,000) has reduced
the carrying value of Other receivables and an ECL of €8,000 (2023: €16,000), has reduced the
carrying value of Loans. The Group has availed of the low credit risk exemption outlined in IFRS 9 and
applied this to particular assets included within 'Other receivables'.
(e) Concentration risk
Concentration risk is the risk of loss due to over allocation on a singular investment or category of
business. The main concentration risks to which the Group is exposed, and how they are mitigated, are
as follows:
•
Exposure to a single country, counterparty or security as part of its sovereign or corporate bond
portfolio. The Group mitigates this risk by placing limits on these exposures with its investment
managers which are continuously monitored.
•
Exposure to a single counterparty as part of its cash and deposit holdings. The Group mitigates
this risk by placing limits on its total exposures to banking counterparties as set out in the Group’s
Investment Policy, which is approved annually by the Board of Directors.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
273
37 FINANCIAL RISK MANAGEMENT (continued)
•
While all of the Group’s underwriting business is conducted in Ireland, with a significant focus on
the farm-sector, it is spread over a wide geographical area with no concentration in any one county
or region. The resultant concentration risk from adverse weather events, i.e. floods, storms or
freezes in Ireland, are mitigated by a flood mapping solution and an appropriate reinsurance
strategy.
Receivables have no significant concentration of risk.
(f) Sensitivity analysis
The below sensitivity analysis shows the impact on gross and net liabilities, profit before tax and
equity for reasonably possible movements in key assumptions with all other assumptions held
constant. The correlation of assumptions will have an effect in determining the ultimate impacts, but to
demonstrate the impact due to changes in each assumption, assumptions have been changed on an
individual basis.
(i) Underwriting risk
Underwriting risk is the risk that underwritten business is less profitable than planned due to
insufficient pricing and setting of claims case reserves as a result of higher than expected claims
frequency, higher average cost of claims and catastrophic claims. The Group manages this risk through
its underwriting strategy, proactive claims handling and its reinsurance arrangements. The Group
underwriting strategy is incorporated in the overall corporate strategy and all risks underwritten are
within the Group’s underwriting policies. The Group uses statistical and actuarial methods to calculate
the quantum of claims provisions and the case reserve estimates are subject to robust controls. The
Group purchases reinsurance protection to limit its exposure to single claims and the aggregation of
claims from catastrophic events.
The following table presents information on how reasonably possible changes in assumptions by the
Group with regard to underwriting risk variables impact on insurance liabilities, profit before tax and
equity before and after risk mitigation by reinsurance contracts held. As these contracts are measured
under the PAA, only the LIC component of insurance liabilities is impacted.
2024
2023
LIC as at
31/12
Impact on
LIC
Impact on
Profit
before tax
Impact on
Equity
LIC as at
31/12
Impact on
LIC
Impact on
Profit
before tax
Impact on
Equity
€000s
€000s
€000s
€000s
€000s
€000s
€000s
€000s
Insurance
contract
liabilities
627,149
—
—
—
647,950
—
—
—
Net reinsurance
contract assets
(79,437)
—
—
—
(101,015)
—
—
—
Net insurance
contract
liabilities
547,712
—
—
—
546,935
—
—
—
Unpaid claims and expenses: +10%
Insurance
contract
liabilities
—
62,715
(63,431)
(54,876)
—
64,795
(66,131)
(56,696)
Reinsurance
contract assets
—
(7,944)
8,146
6,951
—
(10,101)
10,397
8,838
Net insurance
contract
liabilities
—
54,771
(55,285)
(47,925)
—
54,694
(55,734)
(47,858)
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
274
37 FINANCIAL RISK MANAGEMENT (continued)
(ii) Interest rate
The following table discloses an analysis of how a possible shift in market interest rates of +/- 100bps
might impact the insurance contract liabilities (LIC), investment assets at FVOCI, profit before tax and
equity.
2024
2023
€000s
€000s
Gross insurance liabilities1
(561,201)
(578,490)
Reinsurance assets1
72,658
91,568
Net insurance liabilities
(488,543)
(486,922)
Investment assets classified as FVOCI2
891,956
855,989
+100bps in interest rate
Impact on:
Gross insurance liabilities
11,710
12,562
Reinsurance assets
(1,993)
(2,457)
Net insurance liabilities
9,717
10,105
Investment assets classified as FVOCI
(33,374)
(33,825)
Profit before tax3
—
—
Decrease in equity
(20,700)
(20,755)
-100bps in interest rate
Impact on:
Gross insurance liabilities
(12,339)
(13,264)
Reinsurance assets
2,140
2,641
Net insurance liabilities
(10,199)
(10,623)
Investment assets classified as FVOCI
35,590
36,078
Profit before tax3
—
—
Increase in Equity
22,217
22,272
1 Gross liabilities and reinsurance assets excludes the risk adjustment, as this is not sensitive to interest rate movements, as it reflects
uncertainty relating to non-financial risks.
2 (Re) insurance contract assets and liabilities are backed by cash and fixed interest securities of low risk and similar duration. All of the
Group’s fixed interest securities are classified as FVOCI. ‘Cash and cash equivalents’ are not included in the stress test, due to their short
term maturity.
3 A change in the interest rate impacts the LIC, however this impact will be in the Consolidated OCI with no impact on profit before tax as
the Consolidated Income Statement is based on initial rate which remains unchanged in these scenarios. Similarly any change in interest
rate will impact the FVOCI investments, however will have no impact on profit before tax, instead the impact will go through Consolidated
OCI.
(iii) Other sensitivities
The table below identifies the Group’s other key sensitivity factors. For each sensitivity test, the
impact of a change in a single factor is shown, with other assumptions left unchanged.
Sensitivity factor
Description of sensitivity factor applied
Interest rate and investment return
The impact of a change in the market interest rate by an increase of 1% or a decrease of 0.25%.
For example if a current interest rate is 2%, the impact of an immediate change to 3% and 1.75%.
Exchange rates movement
The impact of a change in foreign exchange rates by ± 10%.
Equity market values
The impact of a change in equity market values by ±10%.
FVOCI investments
The impact of a change in bond market valuations by ±5%.
Level 3 - investment property
The impact of a change in market rents ±10%.
Level 3 - investment property
The impact of a change in capitalisation yield ± 0.5%.
Level 3 - property held for own use
The impact of a change in market rents ±10%.
Level 3 - property held for own use
The impact of a change in capitalisation yield ± 0.5%.
Level 3 - other investments
The impact of a change in valuations by ±10%.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
275
37 FINANCIAL RISK MANAGEMENT (continued)
The pre-taxation impacts on shareholders’ equity at 31 December 2024 and at 31 December 2023 of
each of the sensitivity factors outlined above are as follows:
2024
2023
€000s
€000s
Interest rates
1%
(37,566)
(36,172)
Interest rates
(0.25%)
9,957
9,704
FX rates
10%
6,313
6,238
FX rates
(10%)
(6,313)
(6,238)
Equity
10%
3,384
4,798
Equity
(10%)
(3,384)
(4,798)
FVOCI investments
5%
44,598
42,799
FVOCI investments
(5%)
(44,598)
(42,799)
Level 3 - investment property - Market Rent (note 14(b))
10%
1,400
1,400
Level 3 - investment property - Market Rent (note 14(b))
(10%)
(1,300)
(1,500)
Level 3 - investment property - Capitalisation yield (note 14(b))
0.5%
(800)
(900)
Level 3 - investment property - Capitalisation yield (note 14(b))
(0.5%)
900
1,000
Level 3 - property held for own use - Market Rent (note 14(b))
10%
1,171
1,171
Level 3 - property held for own use - Market Rent (note 14(b))
(10%)
(1,285)
(1,285)
Level 3 - property held for own use - Capitalisation yield (note 14(b))
0.5%
(898)
(898)
Level 3 - property held for own use - Capitalisation yield (note 14(b))
(0.5%)
830
830
Level 3 - other investments (note 14(b))
10%
5,211
4,792
Level 3 - other investments (note 14(b))
(10%)
(5,211)
(4,792)
Limitations of sensitivity analysis
The above tables demonstrate the effect of a change in a key assumption while other assumptions
remain unchanged. In reality, there is a correlation between the assumptions and other factors. It
should also be noted that these sensitivities are non-linear, and larger or smaller impacts should not be
interpolated or extrapolated from these results. The sensitivity analysis does not take into
consideration that the Group’s assets and liabilities are actively managed. Additionally, the financial
position of the Group may vary at the time that any actual market movement occurs.
Other limitations in the above sensitivity analysis include the use of hypothetical market movements
to demonstrate potential risk. They represent the Group’s view of possible near-term market changes
that cannot be predicted with any certainty and assume that all interest rates move in an identical
fashion.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
276
37 FINANCIAL RISK MANAGEMENT (continued)
(g) Insurance risk
Gross claims development
Actual claims payments are compared with previous estimates of the undiscounted amounts of the claims in the claims development disclosures below on a gross
of reinsurance basis as at 31 December 2024.
Accident year
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Total
€000s
€000s
€000s
€000s
€000s
€000s
€000s
€000s
€000s
€000s
€000s
Estimate of ultimate claims cost1:
At end of accident year
288,726
240,975
230,576
234,845
201,745
359,901
222,509
221,145
232,557
260,840
One year later
294,585
226,231
213,798
224,166
196,579
367,152
206,018
218,012
229,353
—
Two years later
314,664
214,276
199,484
213,477
172,845
339,236
217,002
204,142
—
—
Three years later
309,541
203,629
198,514
206,541
166,682
272,551
213,748
—
—
—
Four years later
285,638
196,351
195,149
199,397
165,953
259,347
—
—
—
—
Five years later
281,297
195,903
188,663
190,234
162,782
—
—
—
—
—
Six years later
280,966
194,234
184,488
188,081
—
—
—
—
—
—
Seven years later
272,936
192,396
180,942
—
—
—
—
—
—
—
Eight years later
264,616
187,982
—
—
—
—
—
—
—
—
Nine years later
262,587
—
—
—
—
—
—
—
—
—
Ten years later
Estimate of cumulative claims
262,587
187,982
180,942
188,081
162,782
259,347
213,748
204,142
229,353
260,840
Cumulative payments2
(249,517)
(176,080)
(160,824)
(162,306)
(128,942)
(199,461)
(132,891)
(131,672)
(138,414)
(105,252)
Claims outstanding at 31.12.24
13,070
11,902
20,118
25,775
33,840
59,886
80,857
72,470
90,939
155,588
564,445
Gross cumulative claims outstanding - prior accident years
28,196
Effect of discounting
(31,440)
Effect of the risk adjustment for non-financial risk
65,948
Gross LIC
627,149
1 Ultimate claims are gross of reinsurance, undiscounted, inclusive of other directly attributable expenses relating to claims management.
2 Cumulative payments relate to gross claims and other directly attributable expenses relating to claims management paid.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
277
37 FINANCIAL RISK MANAGEMENT (continued)
Net claims development
Actual claims payments are compared with previous estimates of the undiscounted amounts of the claims in the claims development disclosures below on a net of reinsurance
basis as at 31 December 2024.
Accident year
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Total
€000s
€000s
€000s
€000s
€000s
€000s
€000s
€000s
€000s
€000s
€000s
Estimate of ultimate claims cost1:
At end of accident year
258,197
214,776
201,561
214,844
190,529
257,995
185,527
161,029
216,802
249,867
One year later
264,220
210,223
193,783
208,259
184,032
242,582
173,277
159,886
218,527
—
Two years later
275,233
199,853
184,032
200,375
165,425
269,395
176,360
150,538
—
—
Three years later
270,024
188,762
181,921
198,901
161,579
246,190
174,812
—
—
—
Four years later
261,250
185,533
180,856
190,299
159,983
240,418
—
—
—
—
Five years later
258,388
185,023
176,175
183,676
158,102
—
—
—
—
—
Six years later
258,910
183,706
171,967
181,908
—
—
—
—
—
—
Seven years later
253,731
181,877
169,228
—
—
—
—
—
—
—
Eight years later
245,803
178,097
—
—
—
—
—
—
—
—
Nine years later
244,457
—
—
—
—
—
—
—
—
—
Ten years later
Estimate of cumulative claims
244,457
178,097
169,228
181,908
158,102
240,418
174,812
150,538
218,527
249,867
Cumulative payments2
(231,610)
(166,511)
(154,449)
(158,907)
(129,148)
(198,250)
(114,256)
(87,467)
(134,674)
(104,745)
Claims outstanding at 31.12.24
12,847
11,586
14,779
23,001
28,954
42,168
60,556
63,071
83,853
145,122
485,937
Net cumulative claims outstanding - prior accident years
28,412
Effect of discounting
(25,806)
Effect of the risk adjustment for non-financial risk
59,169
Net LIC
547,712
1 Ultimate claims are net of reinsurance, undiscounted, inclusive of other directly attributable expenses relating to claims management.
2 Cumulative payments relate to net claims and other directly attributable expenses relating to claims management paid.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
278
37 FINANCIAL RISK MANAGEMENT (continued)
(g) Insurance risk
Gross claims development
Actual claims payments are compared with previous estimates of the undiscounted amounts of the claims in the claims development disclosures below on a gross
of reinsurance basis as at 31 December 2023.
Accident year
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Total
€000s
€000s
€000s
€000s
€000s
€000s
€000s
€000s
€000s
€000s
€000s
Estimate of ultimate claims cost1:
At end of accident year
302,693
288,726
240,975
230,576
234,845
201,745
359,901
222,509
221,145
232,557
One year later
335,089
294,585
226,231
213,798
224,166
196,579
367,152
206,018
218,012
—
Two years later
339,918
314,664
214,276
199,484
213,477
172,845
339,236
217,002
—
—
Three years later
332,618
309,541
203,629
198,514
206,541
166,682
272,551
—
—
—
Four years later
328,782
285,638
196,351
195,149
199,397
165,953
—
—
—
—
Five years later
323,646
281,297
195,903
188,663
190,234
—
—
—
—
—
Six years later
322,351
280,966
194,234
184,488
—
—
—
—
—
—
Seven years later
319,866
272,936
192,396
—
—
—
—
—
—
—
Eight years later
318,453
264,616
—
—
—
—
—
—
—
—
Nine years later
316,532
—
—
—
—
—
—
—
—
—
Ten years later
Estimate of cumulative claims
316,532
264,616
192,396
184,488
190,234
165,953
272,551
217,002
218,012
232,557
Cumulative payments2
(302,125)
(241,503)
(171,436)
(156,247)
(155,552)
(119,200)
(183,053)
(121,640)
(120,286)
(94,241)
Claims outstanding at 31.12.23
14,407
23,113
20,960
28,241
34,682
46,753
89,498
95,362
97,726
138,316
589,058
Gross cumulative claims outstanding - prior accident years
26,122
Effect of discounting
(36,690)
Effect of the risk adjustment for non-financial risk
69,460
Gross LIC
647,950
1 Ultimate claims are gross of reinsurance, undiscounted, inclusive of other directly attributable expenses relating to claims management.
2 Cumulative payments relate to gross claims and other directly attributable expenses relating to claims management paid.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
279
37 FINANCIAL RISK MANAGEMENT (continued)
Net claims development
Actual claims payments are compared with previous estimates of the undiscounted amounts of the claims in the claims development disclosures below on a net of reinsurance
basis as at 31 December 2023.
Accident year
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Total
€000s
€000s
€000s
€000s
€000s
€000s
€000s
€000s
€000s
€000s
€000s
Estimate of ultimate claims cost1:
At end of accident year
254,902
258,197
214,776
201,561
214,844
190,529
257,995
185,527
161,029
216,802
One year later
289,202
264,220
210,223
193,783
208,259
184,032
242,582
173,277
159,886
—
Two years later
293,354
275,233
199,853
184,032
200,375
165,425
269,395
176,360
—
—
Three years later
291,760
270,024
188,762
181,921
198,901
161,579
246,190
—
—
—
Four years later
288,785
261,250
185,533
180,856
190,299
159,983
—
—
—
—
Five years later
283,207
258,388
185,023
176,175
183,676
—
—
—
—
—
Six years later
281,421
258,910
183,706
171,967
—
—
—
—
—
—
Seven years later
278,896
253,731
181,877
—
—
—
—
—
—
—
Eight years later
278,048
245,803
—
—
—
—
—
—
—
—
Nine years later
276,370
—
—
—
—
—
—
—
—
—
Ten years later
Estimate of cumulative claims
276,370
245,803
181,877
171,967
183,676
159,983
246,190
176,360
159,886
216,802
Cumulative payments2
(262,709)
(225,288)
(161,868)
(150,112)
(152,245)
(119,407)
(183,061)
(103,022)
(76,230)
(92,707)
Claims outstanding at 31.12.23
13,661
20,515
20,009
21,855
31,431
40,576
63,129
73,338
83,656
124,095
492,265
Net cumulative claims outstanding - prior accident years
23,981
Effect of discounting
(29,325)
Effect of the risk adjustment for non-financial risk
60,014
Net LIC
546,935
1 Ultimate claims are net of reinsurance, undiscounted, inclusive of other directly attributable expenses relating to claims management.
2 Cumulative payments relate to net claims and other directly attributable expenses relating to claims management paid.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
280
37 FINANCIAL RISK MANAGEMENT (continued)
38. 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.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
281
Other Information
ALTERNATIVE PERFORMANCE MEASURES (APMs) (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 APM’s 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.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
282
Note
2024
2023
€000s
€000s
Calculation:
Incurred claims and other expenses
16
266,747
238,133
Changes that relate to past service – changes in FCF relating to the LIC
16
(72,928)
(103,990)
Net expense from reinsurance contracts held
4(a)
51,453
64,666
Movement in other provision charges1
25
6,695
15,831
Total claims incurred and movement in other provision charges
251,967
214,640
1 ESG initiative has been excluded as not insurance related
Insurance revenue
4(a)
441,005
401,026
Loss ratio
57.1 %
53.5 %
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 claims 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
provision charges / Insurance revenue x 100
Components:
•
Undiscounted total claims incurred and movement in other provision charges: See definition for
Total Claims Incurred and movement in the other provisions above, without any adjustments for
future liability discounting.
•
Insurance revenue: See above.
Note
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
25
6,695
15,831
Total claims incurred and movement in other provision charges
259,952
224,075
1 ESG initiative has been excluded as not insurance related
2These 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).
Insurance revenue
4(a)
441,005
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 amortisation of insurance acquisition cash flow and non-attributable expenses by the
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
283
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 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 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.
Note
2024
2023
€000s
€000s
Calculation:
Amortisation of insurance acquisition cash flow
4(c)
84,633
75,909
Non-attributable expenses
4(c)
37,804
34,018
Total insurance acquisition and non-attributable expenses
4(c)
122,437
109,927
Insurance revenue
4(a)
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.
Note
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
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
284
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.
Note
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.
Note
2024
2023
€000s
€000s
Calculation:
Investment return recognised in Consolidated Income Statement
5
26,087
19,094
Investment return recognised in Statement of comprehensive income
5
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 %
1This 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
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
285
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
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.
Note
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)
27
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.
Note
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 %
1 Average 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.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
286
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 provisions charges: This term refers to changes in the Group's liabilities related
to insurance contracts not already included in the Insurance Service Result.
Note
2024
2023
€000s
€000s
Calculation:
Insurance service result
4(a)
111,100
126,308
Non-attributable expenses
4(c)
(37,804)
(34,018)
Movement in other provisions1
25
(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: Premiums written during the period, adjusted for changes in unearned premium
reserves and interest on Instalment premiums.
•
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.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
287
Note
2024
2023
€000s
€000s
Calculation:
Insurance revenue
4(a)
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
1 These 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.
FBD Holdings
Annual Report 2024
Management's
Review
Sustainability
Statement
Financial
Statements
Other
Information
288
FBD HOLDINGS PLC
FBD House
Bluebell
Dublin 12
www.fbd.ie