Línea Directa Aseguradora (LDA) Q4 2023 earnings summary

Executive summary

• Net loss was €4.4 million for FY2023, while pricing, underwriting and claims-management actions returned results to profitability in Q3 and Q4; H2 net profit was €10.7 million.

• Q4 net profit reached €8.1 million as the combined ratio improved to 98.5%, reflecting lower claims costs and recovering margins.

Financial highlights

• Written premiums increased 2.8% YoY to €973.3 million; insurance revenue rose 3.8% to €960.3 million.

• FY2023 net loss was €4.4 million, versus net profit of €63.1 million in 2022; profit before tax was €10.5 million, versus a €6.5 million loss.

• Financial result declined 18.8% to €34 million, reflecting extraordinary capital gains in 2022; recurrent result excluding those gains increased 19.8%.

Outlook and guidance

• 2024 priorities are to extend margin improvement and grow premiums and earnings through innovation, digitalisation and diversification.