Línea Directa Aseguradora (LDA) Q2 2025 earnings summary

Executive summary

• Net income rose 72.2% year-over-year to €43.8 million in H1 2025, driven by strong premium and customer growth, improved underwriting margin, and robust return on equity.

• Gross written premiums increased 10.8% to €558.2 million, with the customer base expanding by 7.2% to 3.58 million policyholders.

• Combined ratio improved by 3.2 percentage points to 92.3%, reflecting lower claims frequency and operational efficiency.

• Solvency II ratio strengthened to 193.2%, indicating robust capital strength.

• All business lines contributed to growth, with Motor, Home, and Health segments outperforming market trends.

Financial highlights

• Net income for H1 2025 reached €43.8 million, up 72.2% year-over-year.

• Gross written premiums totaled €558.2 million, a 10.8% increase year-over-year.

• Technical insurance result surged 79.5% to €38.7 million.

• Net investments result grew 33.9% to €22.2 million, supported by higher returns from fixed income and equities.

• Profit before tax rose 69.6% to €58.1 million.

Outlook and guidance

• Acceleration in premium and customer growth is expected to continue, supported by strong retention, product mix improvements, and ongoing digitalization.

• Focus remains on maintaining excellent profitability and capital strength, with combined ratios in key segments anticipated to remain in the low 90s.

• Health insurance portfolio expected to continue improving in the latter part of the year.