Sjóvá-Almennar tryggingar (SJOVA) investor relations material

Executive summary

• Net profit after tax for 2025 was ISK 2,066 million, with a combined ratio of 92.6%.

• Profit from insurance contracts before tax was ISK 2,576 million; investment activities contributed ISK 448 million before tax.

• Q4 2025 net profit after tax was ISK 1,400 million, with a combined ratio of 98.5%.

• Strong core operations and favorable claims development, with only one major claim in 2025 compared to six in 2024.

• Company recognized for customer satisfaction and workplace brand, with high employee satisfaction scores.

Financial highlights

• Annual revenue from insurance contracts grew 3.5% year-over-year to ISK 34,778 million.

• Claims expenses increased by 0.5% year-over-year; operating expenses rose 3.2%, mainly due to wage and IT development costs.

• Profit from insurance contracts before tax doubled year-over-year to ISK 2,576 million.

• Investment income for the year was ISK 2,449 million, down 55.3% year-over-year.

• Net profit after tax for the year fell 51.3% year-over-year.

• Q4 2025 investment income was ISK 1,983 million, down 37.4% from Q4 2024.

Outlook and guidance

• 2026 guidance: profit from insurance contracts expected between ISK 1,800–2,500 million, combined ratio 93–95%.

• No guidance for investment income; long-term investment return target is 8.5% per year.

• Negative impact of ISK 1,300 million expected from discounting insurance liabilities at current interest rates.