Tryggingafelagid TM made a profit of ISK 979 million in the third quarter, thus turning a loss into a profit compared to the same quarter last year. The company also lost ISK 184 million.
Operating profit for the quarter was ISK 1,121 million. The result of insurance operations was positive by ISK 497 million (354 million 3Q 2019), the result of financing was positive by 143 million (111 million 3Q 2019) and investment activities returned ISK 481 million (-640 million 3Q 2019).
Return on equity 12 months back is 20.8% and profit margin ISK 1.27. The combined ratio is 89.2% but was 93.6% in the same quarter last year.
A press release from the company states that Sigurður Vidarsson, CEO, said that the results for the quarter had developed much for the better from the previous year.
“It is particularly gratifying to see more balance between the three pillars of the business, insurance, financing, and investment.”
Sigurdur says that negotiations on a merger with Kvika are going well, but at the end of September it was announced that they would be over.
“The negotiations have been successful and the aim is to reach a conclusion in the coming weeks. If the merger is successful, the merged company will be financially strong and with all the means to advance in all major areas of financial and insurance services. ”
Profit for the first nine months of the year
TM’s profit for the first 9 months of the year is ISK 3,246 million and doubles compared to the previous year when it was ISK 1,840 million.
Operating profit amounted to ISK 1,256 million, compared to ISK 1,976 million a year ago. These figures are based on the fact that Lykil had been part of the group, but the companies merged after TM acquired Lykil last January.
The performance of collateral in the first nine months of the year is 907 million (871 million 9M 2019), the financing result is negative by 211 million (366 million 9M 2019) and the return on investments is positive by 2,813 million (739 million 9M 2019).
Return on equity so far this year is 23.4%. Earnings per share are ISK 4.21 and the combined ratio is 94%.
Assume a profit of 3 billion
It is assumed that TM’s profit over the next 12 months will be around ISK 3 billion before taxes and that the combined ratio of insurance will be around 93%.
