Danish insurance company Topdanmark Forsikring A/S (OMX: TOP) has been holding up well against a blood-red market after releasing better than expected quarterly results yesterday for Q1 2012. The after-tax profit of 561 was not only higher than analysts’ were predicting, but also higher than Topdanmark’s own profit model estimates. The company attributed this to higher than expected investment return. The premiums in non-life insurance (+0.8%) and life insurance (+6.0%) were both higher.
As a result the company’s profit forecast model now shows an estimated after tax result of of 1.25-1.35 billion DKK, which is up from 1.15-1.25 billion. The company does not provide a standard guidance but instead a result band based on a number of different variables. Sensitivities are available from the company website in risk management section. The share buy-back programme is increased by 100 million to 1.4 billion DKK. The company believes that current solvency capital is sufficient and should there be stricter requirements, those should be mostly covered by previously issued tier 2 capital.
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