Vátryggingafelag Íslands : Combined Ratio and Investment Returns in January 2021

VIS: Combined Ratio and Investment Returns in February 2021

The combined ratio* in February 2021 was 102.2% and stands at 103.1% for the year so far.

In February, VIS paid out more than ISK 2 billion in claims** to its customers and has paid almost ISK 3.1 billion in claims for the year so far.

Investment returns were 2.9% in February, and stand at 3.7% from the beginning of the year to the end of February.

Claims losses in February were in line with the company's projections. Reinsurance costs do not accrue evenly during the year and are high in February, which largely explains the high combined ratio for the month. The company's forecast for the full-year combined ratio remains unchanged at 96.8%.

It should be noted that the combined ratio in March will not be disclosed in a separate notification; instead, the combined ratio for the quarter as a whole will be disclosed in the next quarterly report. The results of the first quarter will be published on 29 April 2021.

*The combined ratio measures the ratio of claims losses, reinsurance costs and underwriting-related operating expenses as a percentage of premiums earned, in accordance with Guidelines No.1/2020 issued by the Financial Supervision division of the Central Bank of Iceland.

**It should be borne in mind that claims losses incurred by insurance companies are subject to monthly fluctuation.

For further information, please contact Erla Tryggvadóttir, Director of Communications, at [phone] or [e-mail].