Línea Directa Aseguradora (LDA) investor relations material

Executive summary

• Gross written premiums rose 9.2% year-over-year to EUR 609.3 million, with all business lines contributing to growth and the customer portfolio expanding 7.8% to 3.86 million risks.

• Net profit increased by 19% to EUR 52.1 million, driven by higher volumes, improved underwriting, and technical profitability.

• Return on equity reached 23.3%, and the Solvency II ratio strengthened to 196.3%.

• All business lines contributed to premium growth, with significant increases in policyholders and technical profitability.

Financial highlights

• Combined ratio improved by 1.2 percentage points year-over-year to 91.1%, with a loss ratio of 70.9% and expense ratio of 20.2%.

• Insurance activities income grew 11.2% year-over-year to EUR 577.1 million; technical insurance result up 28.4% to EUR 49.7 million.

• Investment result was EUR 21.8 million, with a 5.2% increase in financial investment income.

• Interim dividend of EUR 18 million paid and deducted from own funds, impacting solvency margin.

• Profit before tax increased 17.5% to EUR 68.3 million.

Outlook and guidance

• Priorities remain on maintaining profitability growth, protecting technical margins, and leveraging efficiency and digitalisation.

• Monitoring inflation and repair costs closely; will adjust premiums if inflation impacts costs.

• Home combined ratio expected to remain strong, but subject to atmospheric events in autumn.

• Digital sales targeted for continued growth, currently at 13–14% of new production.

• Solvency II ratio remains robust at 196.3%, reflecting strong capital generation and prudent risk management.