Línea Directa Aseguradora (LDA) investor relations material

Executive summary

• Achieved 10.2% year-over-year growth in gross written premiums to €303.2 million, nearly double the non-life market growth rate, with strong customer acquisition and retention; net profit rose 12.3% to €23.4 million.

• Customer portfolio expanded to 3.8 million, an 8.5% increase, adding 72,000 new clients in the quarter.

• Combined ratio improved to 91.7% (down 0.6 p.p. year-over-year), reflecting operational efficiency and digitalisation.

• Return on equity reached 22.5%, highlighting operational efficiency and profitability.

• Solvency ratio remained robust at 190.6%, indicating strong capital strength.

Financial highlights

• Gross written premiums reached €303.2 million (+10.2% year-over-year); technical result increased 20.1% to €22.9 million.

• Net profit for Q1 2026 was €23.4 million, up 12.3% from Q1 2025.

• Combined ratio held strong at 91.7%, with loss ratio at 72.7% and expense ratio at 19.0%.

• Investment result declined 7.2% to €9.5 million, impacted by market volatility and real estate renovations.

• Profit before tax reached €30.7 million, up 11.1% year-over-year.

Outlook and guidance

• Focus remains on profitable, efficiency-driven growth through 2026 and beyond, with revenues expected to outpace the market.

• Combined ratio guidance for the full year remains at 92%-94%, with confidence in maintaining low 90s.

• Continued investment in technology and digital transformation expected to further improve expense ratio.

• Real estate rental income expected to resume after building renovations complete in November 2026.