Profit of ISK 2,428 m in first half of 2007
Principal figures for January-June 2007
• Profit for the first six months of the year came to ISK 2,428 m, compared
with a loss of ISK 624 m for the same period last year.
• Profit for Q2 2007 was ISK 1,542 m, compared with a loss of ISK 1,250 m for
Q2 2006.
• Pre-tax profit on insurance operations in the first six months of the year
came to ISK 337 m, compared with a loss of ISK 291 m last year.
• Pre-tax profit on domestic insurance operations during the period amounted to
ISK 55 m.
• Written premium more than doubled, reaching ISK 13,126 m, against ISK 5,226 m
last year.
• Written premium from TM's domestic insurance operations grew by 22%.
• Investment income came to ISK 4,066 m during the period, against ISK 1,389 m
in the same period last year.
• Profit per share came to ISK 2.24.
• TM's total assets as of 30 June 2007 stood at ISK 75,245 m, 8.5% higher than
their value of ISK 69,379 m at the beginning of the year.
• Equity at the end of the period stood at ISK 22,763 m, compared with ISK
21,972 m at the beginning of the year.
• The equity ratio on 30 June was 30.3%.
• The Norwegian insurance company Nemi became part of the consolidation as of 1
September 2006, which affects comparison of TM's Income Statement and Balance
Sheet for the two periods.
Comments
Óskar Magnússon, President & CEO of TM, said it was gratifying to see the
positive development in the Company's performance. He said a favourable
stockmarket environment had contributed to the results, but also that a
positive recovery could be seen in the outcome of insurance activities. Last
year's acquisition of Nemi has broadened the range of insurance activities and
improved performance.
There has been an improvement in the performance of domestic insurance
activities, and most branches of insurance are now operating in profit.
Voluntary motor insurance has yielded a loss, but premiums in that division
were raised by 15% as from 1 July and this increase has yet to take effect.
Much work has also been done on preventive measures in an attempt to reduce the
claim rate. Accident and sickness insurance give particular cause for concern,
with substantial losses in this category in the first half of the year. This
has been mainly due to an increase in claims in seamen's insurance. Preventive
measures have already been taken, in collaboration with clients, but
performance in the category as a whole will be less than satisfactory for the
remainder of the year. The structure of this category will have to be reviewed,
with premiums brought into line with claim levels.
The company's Norwegian subsidiary Nemi reported good results for the period,
with a 17% growth in booked premium revenues and a rise in profits. A number of
large contracts were made with new customers during the period.
A favourable trend prevailed on the stock market, and the group's investment
earnings amounted to ISK 4,066 m. The asset portfolio underwent further
diversification, with additional investments abroad. It is gratifying to see a
substantial rise in investment income at Nemi, where a new investment policy
has been applied since the beginning of the year.
For further information, please contact Óskar Magnússon, President & CEO, tel.
515 2609 .
