Línea Directa Aseguradora (LDA) Q4 2025 earnings summary

Executive summary

• Net income/net profit rose 33.5% year-over-year to €85.7–86 million, driven by record customer growth, operational efficiency, and digitalization initiatives.

• Customer portfolio expanded by 8.5% to 3.73 million, the highest annual growth in company history, with 290,400 risks added.

• Gross written premiums (GWP) increased 11.3% year-over-year to €1,134.7–1,135 million, outpacing the sector average.

• Digitalization led to significant increases in digital interactions and sales, with 91% of customers engaging digitally and digital sales reaching 9% of new business.

• Board proposes a supplementary dividend of €15 million, with total shareholder remuneration for 2025 at €45–50 million.

Financial highlights

• GWP/revenue grew 11.3% year-over-year to €1,134.7–1,135 million, with all business lines contributing.

• Combined ratio improved by 2.1 percentage points to 92.6% for the year.

• Financial result increased by 5.4% to €41.8 million, supported by higher bond income and investment fund performance.

• Profit before tax was €114.1 million (+37.0%), and profit after tax was €85.7 million (+33.5%).

• Technical insurance result rose 51.1% to €77.4 million.

Outlook and guidance

• Expectation to continue outpacing market growth in 2026, leveraging competitive combined ratios and digital efficiency.

• Combined ratio expected to remain in the 92–93% range, with further improvements likely from expense ratio reductions.

• Real estate investment income expected to recover after building renovations complete in November 2026.

• Dividend payout will depend on maintaining solvency around 180%.

• Strategic focus remains on digitalization, customer growth, and margin improvement.