Loss of ISK 130 m in Q2 compared to loss of ISK 3,271 m in Q1 2008.
Reykjavík, 29 August 2008:
Main results from January - June 2008
Loss in Q2 2008 came to ISK 130 m compared to profit of ISK 1,542 m in the same
period 2007.
First half's loss amounted to ISK 3,401 m compared to a profit of ISK 2,428 m in
first half 2007.
Loss of insurance operation in Q2 came to ISK 99 m compared to a profit of ISK
341 m in Q2 2007.
Insurance operation returned a loss of ISK 417 m before tax in the first half
compared to a profit of ISK 337 m in the same period in 2007.
Net insurance premium revenue increased 32% to ISK 6,636 m in the first half of
the year compared to ISK 5,032 m in the same period in 2007.
Net insurance claims increased 52% to ISK 6,915 m in the first half of the year
compared to ISK 4,538 m in the same period in 2007.
Investment income was negative amounting to ISK 756 m in the first half of the
year, but was positive amounting to ISK 4,074 m in the same period in 2007.
On 30 June 2008 TM‘s total assets were valued at ISK 78,830 m, increasing 12%
since the beginning of the year when the assets were valued at ISK 70,444 m.
At the end of the period, equity amounted to ISK 23,878 m compared to ISK 25,616
m at the beginning of the year.
Equity ratio stood at 30.3% on 30 June 2008.
TM's CEO Sigurður Viðarsson:
„TM´s main goal is to improve performance of the insurance operation. Net
insurance premium revenue increased by a third year on year, but net insurance
claims doubled during the same period. During the first half, the performance of
most insurance segments was less than projected. Property insurance saw a great
number of claims during Q1 due to unusually bad weather. The profit of voluntary
motor vehicle insurance was also unsatisfactory, but countermeasures were
implemented including a more systematic risk assessment and premium changes.
Marine insurance at Norway-based Nemi underperformed during the first half as
the company‘s insurance claims were considerably higher than projected. Repair
costs have also risen significantly.
The company's performance in investment operation is mostly caused by a poor
performance during Q1 at a time the company‘s stock holding decreased
significantly. Its stockholding was greatly reduced in Q1, resulting in
increased interest income in Q2.
The company‘s financial standing is very solid and its ability to honour its
obligations is far beyond what is required by the authorities and rating
companies.
For further information please contact Sigurður Viðarsson CEO, tel. 515 2609.
