TM's six months 2010 results
ISK 319 m profit on core operations at Tryggingamiðstöðin (TM) in first half of 2010
Highlights for the period January-June 2010
TM's profit from core operations in the first six months of 2010 amounted to ISK 319 m, compared to ISK 491 m profit for the same period last year.
Net insurance premium revenue increased by 11% and amounted to ISK 5.032 m, compared to ISK 4.524 m for the same period last year.
Investment income in the first six months of 2010 amounted to ISK 1.507 m but were ISK 2.194 for the same period last year.
Net insurance claims decreased by 5% amounting to ISK 3.996 m in the first half of 2010, compared with ISK 4.185 m for the same period last year.
Operational expenses decreased by 5%, amounting to ISK 1.124 m, compared with ISK 1.178 m for the same period last year.
TM's net claims ratio decreased from 92% to 79% between 2009 and 2010. Cost ratio also decreased from 23% to 19%. Combined ratio is now 99% compared to 116% for the same period last year.
TM's total assets as of 30 June 20101 stood at ISK 31.613 m compared to ISK 30.699 m for the same period last year.
As of 30 June 2010 equity amounted to ISK 8.357 m and equity ratio was 26%.
Sigurdur Vidarsson, TM's president and CEO:
"TM's profit from core operations in the first six months of the year decreases by 35% between years, the main reason for this is decreased investment income. Important milestone was reached in the first half of the year in the insurance operations, where combined ratio, for the first time in a long time falls below 100%. Both claims- and cost ratio decrease between years. Operational expenses decreases in Kronas for the third year in a row. It is pleasant that the outcome of most of the insurance classes is now on schedule. Reevaluation of pricing and risk assessment in accident and liability-insurances is far from being over. Lesson can be learnt from the great increase in liability claim due to the economy crisis. TM's strength is clearly visible in its balance sheet that shows high ratio of cash, government bonds and other liquid assets. TM has all the potentials to take on what the future brings."
"The result confirm that TM's employees have performed exceptionally well considering the Icelandic insurance market enviroment. It is fundamental but as well inspiring that the insureance operation is now finally gaining balance."