Financial Statements for TM, Q1 2008
Highlights for Q1 2008
• Loss for the quarter amounted to ISK 3,271 m, compared with a profit of ISK
886 m for the corresponding period last year.
• Net insurance premium revenue increased by 34% and amounted to ISK 3,176 m
compared to ISK 2,378 m during Q1 2007.
• Net insurance claims increased by 41% and amounted to ISK 3,327 m compared to
ISK 2,362 m during Q1 2007.
• Combined ratio for the quarter amounted to 127%, compared to a combined ratio
of 119% for the corresponding period last year.
• Insurance operations during the period returned a loss of ISK 318 m; last
year's corresponding figure was a loss of ISK 5 m.
• Investment losses amounted to ISK 2,141 m during the period compared to an
investment profit of ISK 1,898 m for the same period last year.
• TM's total assets as of 31 March 2008 stood at ISK 75,858 m, increasing by
7.7% from ISK 70,444 m since the turn of the year.
Comments
Sigurður Viðarsson, TM's president and CEO, says there will be an ongoing
effort to improve the performance of TM's insurance operations. TM's net
insurance premium has risen by a third between years, which is explained by a
28% rise of premium revenue while the part of re-insurers is decreasing. Claims
for property insurance and voluntary motor insurance were unusually high in Q1,
mostly attributable to harsh weather conditions during the winter. After a
substantial loss on seamen's accident insurance last year, a reversal has
occurred following significant re-organisation of premium structure for those
insurances at the beginning of the year.
Performance of marine insurance at Nemi in Norway did not meet expectations at
all and this largely justifies the group's poor insurance results during the
quarter. However, the risks of Nemi's operations are many and large and one
claim can seriously affect the performance of the branch as a whole, which
yielded considerable profits last year.
Investment losses in Q1 are however the main contributing factor for the
overall performance during the quarter, and reflect the overall global market
stress. The company's market risk has been significantly reduced during the
quarter, by debt payoffs and sales of shares.
For further information, please contact Sigurður Viðarsson, President and CEO,
tel. +354 515 2609.
