Tryggingamiðstöðin hf. - Quarterly report

- 3Q 2007

ISK 1,873 m profit on operations at TM for the first nine months


Highlights for the period January-September 2007

•  Profit for the first nine months of this year at TM amounted to ISK 1,873 m,
   compared with ISK 464 m for the same period last year. 

•  The company made a loss of ISK 555 m during Q3; the result for Q3 last year
   was a profit of ISK 1,088 m. 

•  Insurance operations during the period yielded a profit of ISK 358 m before
   tax; last year's figure was a loss of ISK 175 m. 

•  Booked premium revenues came to ISK 16,636 m, against ISK 6,810 m for the
   same period last year. 

•  Investment income  amounted to ISK 4,296 m, against ISK 3,516 m for the same
   period last year. 

•  The loss per share in Q3 came to ISK 0.51.

•  TM's total assets as of 30 September 2007 stood at ISK 72,985 m, against ISK
   69,661 m at the beginning of the year. 

•  Equity stood at ISK 23,097 m at the end of the period; at the beginning of
   the  year it was ISK 22,121 m. 

•  The equity ratio on 30 September was 31,6%

•  The Norwegian insurance company Nemi became part of the consolidation as of 1
   September 2006, which makes comparison of TM's Income Statement and Balance
   Sheet for the two periods difficult 

Comments
A number of factors had a negative effect on the company's performance in the
third quarter of this year.  Share prices were very unstable in Q3, which had a
negative impact on the company's investment operations, and performance on
insurance still falls short of the company's aims.  The results for Nemi, TM's
Norwegian subsidiary, have been in line with expectations, with the claims and
expense ratios within the limits set.  Performance in TM's insurance operations
in Iceland varies from category to category, with two categories, voluntary
motor insurance and seamen's accident insurance, continuing to yield poor
results as has been the case in the past. 
 
Substantial expenses were entered in the books during the quarter in connection
with changes in the company's senior management.  However, these are one-time
costs for the company, and other expenses have been in line with, or below,
forecast levels. 

Allocation of the purchase price for Nemi was effected in Q3.  This resulted in
a reduction of goodwill by ISK 724 m, spread between trademarks, customer
relationships and deferred tax liability.  Customer relationships are
depreciated over 5 years.  Nemi has been part of the TM consolidation since 1
September 2006, which means that 13 months' depreciation, amounting to ISK 45,6
m after tax, has been entered in the accounts during Q3.  Impairment tests are
to be carried out on goodwill and trademarks at yearly intervals. 




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

Attachments:

tm-09-2007-ifrs_enska.pdf

tm fréttatilkynning ensk.pdf