Flow Trophy/FBD

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No note for a few days as I am walking in Scotland. But with Jupiter, Man and Schroders having updated this week we can update the flow trophy first. 

 Flow Trophy

  • Results There is a tussle going on between Liontrust and Impax for the leadership position. Impax currently ahead by a short length. Behind them there is bunching of Polar, Ashmore, and Jupiter, while Man Group yesterday took the spoon from Premier.

  • Fee Margins Yesterday I was surprised to see Schroders margins down at 39 bps in H1 so a comparison of fee margins showed the trend.  Polar and Liontrust don’t appear as Liontrust don’t provide an “average” number while Polar have only recently started to disclose theirs which stands at 84 bps, in line with Jupiter.


FBD Holdings – H1 Results

Share Price 640c

Mkt Cap €310m

Conflict Disclosure: I Hold 

  • Results GWP down 7% to €176m which is 1% before pandemic related premium rebates which account for 6%. Loss before tax of €9m (2019 €39m). This is after a business interruption claims legal costs which are estimated at €30m. Combined operating ration of 103% while premiums were down 3.4%. Outlook refers to uncertainty over business interruption claims but confidence in the underlying business. New (ex AIB) CEO starts on 1 Feb. 
  • Estimates After last year’s exceptional profit of €112m this year looks like it will be exceptionally small. However, the final 2019 dividend of €35m continues to be deducted from the strong capital position. 
  • Valuation NAV is €366m so the shares trade at a 15% discount.
  • Conclusion Thankfully the pandemic premium rebates aren’t reported as exceptional, nor are the legal costs for the business interruption claims, but IF they were the add back would be in the region of €40m illustrating the statement the company is confident in the underlying profitability. With a new CEO and a strong balance sheet patient investors may find rewards in due course.