Línea Directa Aseguradora (LDA) Q4 2024 earnings summary

Executive summary

• Achieved strong growth and transformation despite macroeconomic headwinds, inflation, and geopolitical risks, while maintaining a customer-centric, digital-first strategy and high brand awareness; 90% of clients are digital.

• Sustainability and ESG principles are embedded in daily operations, with high ratings and 62% women in senior management.

• Customer base expanded by 3.5% to 3.4M policyholders, with 116,200 net new customers.

Financial highlights

• Gross written premiums for 2024 reached €1,020M, up 4.8% year-over-year, with Q4 growth accelerating to 8.6%.

• Net profit rebounded to €64.2M in 2024, a turnaround from a €4.4M loss in 2023, driven by improved insurance margin and revenue growth.

• Combined ratio improved to 94.7% for the year and 92.6% in Q4, down 9.4 p.p. year-over-year.

• Return on average equity reached 19.6%.

• Financial result from investments rose 16.6% to €39.6M, mainly from fixed income.

Outlook and guidance

• Expect continued acceleration in client and premium growth in 2025, with further improvements in combined ratio and expense efficiency.

• Inflationary pressures have eased, and the outlook for claims and profitability has improved.

• Management aims to consolidate growth, diversification, and transformation in 2025, marking the company's 30th anniversary.

• Digitalization and efficiency measures to drive ongoing improvements.

• Average premiums anticipated to rise in line with CPI; combined ratio targeted for further improvement, especially via expense ratio reduction.