TM's 2011 Results
TM’s profit in the year 2011 was ISK 3,437 m.
Highlights for the year 2011:
• Net premiums earned amount to 10,252 million in 2011 compared to 10,170 million in 2010. Investment income
showed positive result, 3,562 million in total compared to 1,363 in 2010. Total income was 13,888 million
compared to 11,568 in 2010.
• Net claims incurred were 7,324 million in 2011 compared to 7,794 million in 2010. Operating expense was 2,454
million in 2011 compared to 2,145 million in 2010. TM´s total operating expense in 2011 was 10,363 million,
compared to 10,761 in 2010.
• Claims ratio decreased from 76.6% in 2010 to 71.4% in 2011. Cost ratio climbed from 18.6% in 2010 to 21.0%
in 2011. TM´s combined ratio was 92.5% in 2011 which is a 3% drop from previous year when the combined
ratio was 95.2%.
• TM´s net income after tax was 3,437 million in 2011. Thereof, 2,433 million came from changes in
fair value of investments.
• TM´s total assets were 29,302 million in year-end 2011. Total liabilities were 17,061 million in comparison. TM repaid
a subordinated debt in August 2011, total of 4,424 million. TM´s equity capital in year end 2011 was 12,241 million.
TM´s equity ratio was therefore 42% in end of 2011.
Sigurður Viðarsson, TM´s President and CEO:
“I am very pleased with the bottom line result, since it was above our initial estimates. TM´s operating result for 2011 was very good in every segment of TM´s operation. Most importantly, the insurance operation has now generated positive technical results for two consecutive years. The company is financially sound and its assets are solid, as last year´s investment income demonstrates.
TM´s financials reaffirm that TM is moving in the right direction and we will continue to strive to distinguish ourselves in the Icelandic insurance market. TM´s policy to build a solid relationship with its customers is paying off, and we have every reason to be proud of that.”