Línea Directa Aseguradora (LDA) Q3 2024 earnings summary

Executive summary

• Net income reached €40.7 million for the first nine months of 2024, reversing a €12.5 million loss from the same period last year.

• Combined ratio improved to 95.4% for 9M 2024, down 10.6 percentage points year-over-year, reflecting enhanced profitability and efficiency.

• Gross written premiums totaled €757.6 million, up 3.5% year-over-year, with strong growth across all business lines.

• Insurance portfolio grew to 3.38 million risks, up 1.2% from Q2 2024, and customer base increased 1.8% since December 2023.

• Solvency II ratio stood at 189.5% at 9M 2024, comprised entirely of Tier 1 capital.

Financial highlights

• Gross written premiums for 9M 2024 were €757.6 million, up 3.5% year-over-year; Q3 standalone GWP grew 5.7%.

• Insurance revenues rose 2.9% to €736.8 million, with all business lines contributing.

• Technical insurance result at €32.9 million, compared to a €41.7 million loss last year.

• Investment result increased 6.1% year-over-year to €26.9 million; up 11.7% excluding Atos bond impairment.

• Profit before tax was €53.9 million, compared to a €17.0 million loss in 9M 2023.

Outlook and guidance

• Combined ratio for motor expected to remain in the 94%-95% range for 2025.

• Premium growth in motor expected to be high single-digit in 2025, with pricing adjustments in line with CPI.

• Home insurance combined ratio expected to stay around 91%-92%, with atmospheric events as a key variable.

• Management expects continued growth and profitability, citing a strong business model and robust solvency.

• Focus remains on client growth, retention, and operational efficiency.