Company Announcements

FBD Holdings plc

FBD Insurance plc

Business Update

26^th May 2020

FBD Holdings plc ("FBD") is today issuing a business update relating to policy coverage for business interruption claims following the Covid 19 pandemic.

Following the actions taken by the Government to stop the spread of Covid 19, which resulted in the temporary closure of many businesses, FBD has received over 700 claims under the business interruption extensions of our business insurance policies. FBD is strongly of the view that our business insurance policies do not provide cover for a pandemic of this nature and we have addressed all claims accordingly.

We understand the extraordinary and unprecedented challenges our customers are experiencing as a result of the actions taken by the Government to reduce the spread of Covid-19.  We are committed to helping our customers through this difficult time. To this end, we have introduced a range of support measures for our business customers who have temporarily closed their premises such as a pro-rata refund of premium relating to the business closure, maintaining full cover for unoccupied business premises without any additional premium and offering flexible premium payment arrangements for customers who are experiencing financial challenges at this time.

We acknowledge the disappointment and frustration of affected businesses that their business interruption insurance does not respond to cover pandemics. However, we are unable to provide cover for what we believe to be, and are advised is, an uninsured risk not covered by our policies.

A number of customers have challenged FBD about our interpretation of policy wordings in particular with regard to those sold to publicans. FBD have approximately 1,300 pub customers and wish to have the issues resolved as quickly as possible to achieve clarity and minimise costs for all parties. Having carefully considered the matter, FBD believes that the most expeditious and efficient way of achieving that is for proceedings to be brought, by way of test case. We can now confirm that litigation between FBD and three publican customers claiming cover for business interruption as a consequence of Covid-19 public health measures, has been scheduled for hearing in the Commercial Court in October 2020.  FBD intends using these cases to seek a determination in court of the overall question of whether losses due to Covid19 related closure, claimed by public house owners, are covered by their FBD policy under the business interruption clause. The three cases in question will allow the issue of cover to be decided in a set of court proceedings, therefore avoiding each pub owner concerned having to take their own legal actions and incurring the related costs. We await the Courts determination in due course.

FBD is confident in our interpretation of policy coverage and are of the view that this approach will provide clarity in an expedient manner to the customers concerned.

About FBD Holdings plc

FBD is one of Ireland's largest property and casualty insurers, looking after the insurance needs of farmers, consumers and business owners. 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, small business and consumer customers throughout Ireland. It has a network of 34 branches nationwide.

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

FBD Holdings plc, FBD House, Bluebell, Dublin 12
Registered in Dublin, Ireland Registered Number 135882