Sjóvá-Almennar tryggingar (SJOVA) Q2 2024 earnings summary

Executive summary

• Net loss after tax of ISK 434 million in Q2 2024, mainly due to four major fire claims, despite strong underlying operations.

• Net loss after tax was ISK 13 million for H1 2024, compared to ISK 566 million profit in H1 2023.

• Total assets increased to ISK 70.1 billion from ISK 69.3 billion at year-end 2023.

• Equity decreased to ISK 20.9 billion from ISK 23.3 billion at year-end 2023.

• Dividend of ISK 2.12 per share (ISK 2.45 billion) paid in March 2024.

Financial highlights

• Insurance contract revenue increased 7.4% year-over-year in Q2 2024 and 8.7% for H1 2024.

• Insurance revenues for H1 2024 were ISK 16.4 billion, up from ISK 15.1 billion in H1 2023.

• Claims expenses rose 17% year-over-year in Q2 2024, mainly due to large fire losses.

• Investment return on managed assets was 0.3% in Q2 2024 and 1.5% for H1 2024, both below expectations.

• Earnings per share were negative ISK 0.38 in Q2 2024 and negative ISK 0.01 for H1 2024.

Outlook and guidance

• 2024 guidance unchanged: pre-tax profit from insurance contracts expected at ISK 1,100–1,600 million, combined ratio around 95–97%.

• 12-month outlook expects pre-tax profit from insurance operations of ISK 1,100–1,600 million and combined ratio of 95–97%.

• Management notes ongoing risk and uncertainty in the operating environment.