Línea Directa Aseguradora (LDA) Q1 2025 earnings summary

Executive summary

• Net income doubled to €20.8 million in Q1 2025, up 106.1% year-over-year, driven by strong business growth and improved technical and financial results.

• Gross written premiums rose 9.5% year-over-year to €275.2 million, with growth across Motor (9.1%), Home (8%), and Health (14.4%) segments.

• Customer portfolio expanded by 184,200 policies (+5.6%), reaching 3.5 million.

• Combined ratio improved to 92.3%, down 5 percentage points year-over-year, reflecting better claims management and cost control.

• Return on average equity rose to 21.8%; solvency margin increased to 187%.

Financial highlights

• Technical insurance result increased 202.6% to €19.1 million; investment result grew 10.6% to €10.2 million, mainly from higher fixed income returns.

• Profit before tax reached €27.7 million, up 102% year-over-year.

• Loss ratio decreased by 3.8 percentage points to 71.3%, reflecting effective claims management.

• Expense ratio improved to 21.0%, benefiting from tight cost control and digitalization.

• Solvency II ratio stood at 187%, up from 185.4% at year-end 2024.

Outlook and guidance

• High single-digit growth in premiums and customers expected to continue, with stable retention levels.

• Focus remains on improving combined ratio, maintaining strong solvency, and sustaining digitalization and cost containment.

• Combined ratio targeted to remain in the low 90s for the year.

• Home combined ratio expected to stabilize in the low 90s, with 89% seen as a strong result.

• Management aims to meet growth and profitability priorities for 2025.