Tryggingamiðstöðin hf. - Financial Statement Release

2007

Highlights for the year

•  Profit for the year was ISK 4,375m, up from ISK 696m in 2006.

•  Written premiums were ISK 20,219m, compared with ISK 9,682m in 2006.

•  Insurance operations made an operating profit of ISK 349m, compared with a
   loss of ISK 358m in the preceding year. 

•  Earnings per share were ISK 4.05.

•  Investment income in 2007 was ISK 3,878m, compared with ISK 4,808m in 2006.
•  TM's total assets stood at ISK 70,444m at year-end 2007, up from ISK 69,661m
   at year-end 2006. 

•  The equity ratio was 36.4% at year-end 2007.

•  The Norwegian insurance company Nemi has been included in TM's consolidated
   accounts since 1 September 2006. This affects year-on-year comparison of the
   Income Statement and Balance Sheet figures. 


Highlights from Q4 of 2007

•  TM made a profit of ISK 2,503m in the fourth quarter. 

•  Operating loss in insurance operation amounted ISK 9.5m in the quarter. 


Comments on the results

Sigurður Viðarsson, TM's President & CEO, said the performance of domestic
insurance operations was unsatisfactory, particularly for voluntary motor
insurance and seamen's accident insurance. The results for Nemi, TM's Norwegian
subsidiary, fell slightly short of projections for the year. 

Significant costs were recognised due to changes in the company's senior
management. These are one-off costs, however, and other expenses were in line
with or below budget. 

The company's asset portfolio changed substantially, with holdings in listed
and unlisted equities down by ISK 6,203m, while cash and cash equivalents were
up by ISK 3,982m. 

TM's deferred income tax liability was down by ISK 3,505m, which largely
accounts for the company's 2007 profit of ISK 4,375m. 



For further information, please contact Sigurður Viðarsson, President & CEO,
tel. +354 515 2636.

Attachments:

tms earnings release 2007.pdf

tm-12-2007-ifrs_enska.pdf