Dansk Kaution, a subsidiary of TrygVesta, has just published its annual report and accounts 2006.
The technical result was DKK 84.8m against DKK 69.3m in 2005, an increase of about 22%. The gross premium income for 2006 was DKK 134.8 against DKK 128.5m last year.
"The result for 2006 is extremely good – it is the best technical result in the last 5 years", Mads Løgstrup, managing director of Dansk Kaution, says. "The result reflects the continued high level of activity in our key segments, primarily in the construction and the industry segments. In addition, we have seen a very positive development on the claims side, which has also largely contributed to the very positive result".
The level of activity continued at a high level all through the year – bottleneck problems influenced many of the company’s clients, who experienced difficulties in hiring sufficient qualified manpower. At the same time, subcontractors increased the level of prices. The company, however, expects the development to be more moderate in 2007.
The credit quality of the company’s clients remains high.
2007 will be affected by new activities, which are specifically aiming at Nordic companies outside Denmark. Dansk Kaution markets itself to customers outside Denmark under the name of "TrygVesta Garanti". The company expects to strengthen these activities by setting up branch offices in Norway and Sweden in 2007. In Sweden, the company will market itself under the name of "Vesta Garanti".
"It is completely in line with TrygVesta’s Nordic strategy that Dansk Kaution is now aiming at establishing itself in Sweden and Norway under the names of TrygVesta Garanti and Vesta Garanti. TrygVesta has become a well-known brand in the Nordic countries in recent years and through the affiliation with TrygVesta, the company may reap substantial synergies from the Group's Nordic infrastructure and support from staff functions", Morten Hübbe, chairman of the board for Dansk Kaution says.
"We are very satisfied with the result for 2006, which is above expectations", Morten Hübbe continues.
The annual results of Dansk Kaution are included in TrygVesta's annual financial statements announced on 28 February. Today, Dansk Kaution announces its own figures at www.danskkaution.dk.Facts about Dansk Kaution
Dansk Kaution, a wholly-owned subsidiary of TrygVesta. The company guarantees its customers' performance under contracts signed and is the leading player within its field in the Nordic region. Its primary customers are contractors and contract manufacturers. The company uses reinsurance to provide substantial capacity for its customers. The company is marketed as TrygVesta Garanti and Vesta Garanti outside Denmark. It has an A- rating from S&P.
Facts about TrygVesta
TrygVesta is the second-largest general insurer in the Nordic region. The Group comprises Tryg, Denmark’s largest general insurer, Vesta, Norway’s third largest insurer, Norwegian Enter and Danish guarantee insurer Dansk Kaution. TrygVesta also has a rapidly growing branch in Finland and has established a presence in Sweden through a branch of Tryg Forsikring A/S. TrygVesta has some 3,700 employees and the Group’s insurance products provide protection for more than two million private individuals.
Further information
- Mads Løgstrup, CEO, Dansk Kaution, phone +45 44 20 39 30
- Troels Rasmussen, CCO, TrygVesta, phone +45 44 20 30 70