Skagi (SKAGI) investor relations material

Executive summary

• Core operations delivered strong revenue and profit growth, with insurance and financial services segments outperforming year-over-year.

• Insurance operations saw robust revenue growth and improved profitability, with a combined ratio significantly better than the previous year.

• Financial services continued to expand, with diversified and recurring revenue streams, though profitability was impacted by one-off costs.

• Investment income was negatively affected by weak equity markets, resulting in lower group profitability despite strong core results.

• Operations span insurance, investment banking, and asset/fund management.

Financial highlights

• Q3 2025 core revenue reached ISK 9,069m, up 12% YoY; group profit before tax was ISK 1,057m, and net profit ISK 717m, up 68% YoY.

• Insurance revenue grew 9.8% YoY, with life and health insurance up 11.6%.

• Financial services revenue increased 52% YoY to ISK 2,211m; operating profit before tax was ISK 29m in Q3.

• Net financial income was negative ISK 1,494m, impacted by weak equity markets.

• 9M 2025 profit was ISK 337m, down from ISK 700m YoY, mainly due to negative investment returns and a high effective tax rate.

Outlook and guidance

• Insurance combined ratio guidance for 2025 was updated to 89.5-92.5%, reflecting improved operational performance.

• Financial services revenue expected above ISK 3,100m (range ISK 2,900–3,500m).

• Expected return on insurance investment assets is 10%.

• Focus remains on scaling financial services profitability and leveraging synergies from the potential merger.