REVO Insurance (REVO) H1 2024 earnings summary

Executive summary

• Gross written premiums reached €153.1 million in H1 2024, up 52.5% year-over-year, with strong growth across new business lines, a more diversified mix, and significant expansion in General Liability, Fire, and Suretyship.

• Net profit rose to €9.4 million, up 50% from H1 2023, with adjusted net profit at €11.2 million, driven by premium growth, operational efficiency, and portfolio diversification.

• Broker channel accounted for 50% of distribution, and the number of parametric policies sold more than tripled year-over-year.

• Continued investment in technology, notably the OverX platform and AI, and expansion of the Iberia team, with S&P rating upgraded to A- and Standard Ethics EE (strong) rating confirmed.

• Robust Solvency II ratio at 200.4%, supporting capital soundness and future growth.

Financial highlights

• Insurance revenues totaled €105.1 million, up from €65.3 million in H1 2023.

• Operating income was €16.8 million, up 27–30% from H1 2023, and nearly 80% of 2023's total value was generated in H1 2024.

• Adjusted net profit was €11.2 million, up from €8.09 million in H1 2023.

• Financial result improved to €2.41 million, supported by higher interest income from a diversified bond portfolio.

• Cost ratio improved to 21.3% from 24.6% in H1 2023, reflecting operational leverage and technology investments.

Outlook and guidance

• Premium income is on track to surpass €300 million, a year ahead of Business Plan targets, with continued profitable growth expected from technology-driven business model and international expansion.

• Solvency II ratio expected to remain around 200% by year-end, with potential for additional profitability in H2 2024.

• Combined ratio guidance maintained between 80% and 85%, with further improvements anticipated in loss and expense ratios.

• Preparation underway for the first ESG Strategic Plan, to be finalized by year-end.

• Property line growth to moderate in H2, targeting 15-16% of portfolio, while maintaining diversification.