Línea Directa Aseguradora (LDA) Q3 2025 earnings summary

Executive summary

• Gross written premiums reached €844 million for the first nine months of 2025, up 11.4% year-over-year, with strong growth in motor (+11.8%), home (+7.3%), and health (+13.9%).

• Net profit for the period was €59.7 million, up 46.4% year-over-year, driven by revenue and customer growth.

• Customer portfolio expanded by 8.1% to 3.65 million policyholders, with over 274,000 new risks underwritten.

• Combined ratio improved to 93.4%, down 2.0 percentage points year-over-year, reflecting efficiency gains and prudent underwriting.

• Return on equity stood at 22.3%.

Financial highlights

• Technical insurance result increased by 55.4% to €51.0 million.

• Investment result grew 18.9% to €32.0 million, driven by higher income from bonds, equities, and investment fund revaluation.

• Profit before tax was €79.3 million, up 48.1% year-over-year.

• Loss ratio improved by 1.1 percentage points to 72.3%; expense ratio decreased by 0.9 percentage points to 21.1%.

• Solvency II ratio stood at 189% at the end of September 2025.

Outlook and guidance

• Expectation to maintain combined ratio in the mid-90s for the year, with a target of 94-95% as a normalized level.

• Premiums will continue to be adjusted in line with CPI increases.

• Anticipation of continued above-market growth in client acquisition and gross written premiums.

• Second dividend announcement expected before year-end, subject to board approval.

• Management highlights continued focus on growth, efficiency, and profitability, aiming to achieve strategic priorities.