IR Newsletter no. 1/ 2009

Welcome to TrygVesta’s first IR newsletter. This issue marks the beginning of a regular issue of newsletters in which we will highlight topical issues to enhance understanding of the factors influencing TrygVesta’s performance.

This first issue looks at provisions and run-off. TrygVesta’s financial results since being listed in 2005 have been supported by annual run-off results in the order of DKK 550-800m. In this newsletter, we will give a detailed account of how these run-off results arise and explain why we expect positive run-off results in future as well.

 

Provisions

Technical provisions are the amounts that ensure that the Company is able to meet its insurance obligations. The amount must equal the risk of claims assumed by an insurance company but not yet paid. Provisions fall into two categories:

Premium provisions cover the pre-paid portion of insurance premiums. Insurance premiums are typically paid annually, and the premium provision ensures that the premium is earned over the course of the year.

Provisions for claims are to cover future payments on claims already incurred. Provisions for claims comprise both claims reported to the Company but not yet paid and estimated claims not yet reported.  

 

Read the entire newsletter