DAVY VIEW

Overall, FBD’s trading update is in line with expectations from the FY 2023 results; however, the ongoing growth in Gross Written Premium (GWP) does highlight the strategic success in growing customer numbers – the third year of good growth in GWP. The update continues to point to a low-90s combined operating ratio (COR); with a strong capital position, a special dividend in H2 remains our base case. We update our forecasts, reflecting the increase in GWP and changes in investment outcome. We retain our ‘Outperform’ rating with a revised price target of €15.50.