Sjóvá-Almennar tryggingar (SJOVA) Q3 2025 earnings summary

Executive summary

• Net profit after tax for Q3 2025 was ISK 1,145 million, with ISK 936 million profit from insurance contracts and ISK 552 million from investment activities before tax.

• Net profit for the nine months ended 30 September 2025 was ISK 666 million, down from ISK 1,429 million for the same period in 2024, reflecting lower investment returns despite strong core insurance operations.

• Combined ratio improved to 89.6% in Q3 2025 from 89.9% in Q3 2024, driven by favorable claims development and absence of major losses.

• Total assets stood at ISK 73,943 million at period end, with equity at ISK 22,437 million and liabilities at ISK 51,506 million.

• The period saw the launch of a new maternity insurance product, which was well received in the market.

Financial highlights

• Q3 2025 insurance contract revenues grew 3.7% year-over-year to ISK 9,034 million; claims costs rose 1.6%.

• Nine-month 2025 insurance contract revenues increased 3.8% year-over-year to ISK 26,102 million; claims costs fell 3.3%.

• Q3 2025 investment income was ISK 1,063 million, down 21.2% year-over-year; investment profit before tax was ISK 958 million, down 23.5%.

• Investment return on managed assets was 1.7% for Q3 2025 and 0.6% for the first nine months, both below expectations.

• Earnings per share for 9M 2025 were ISK 0.58, down from ISK 1.24 in 9M 2024.

Outlook and guidance

• 2025 full-year profit from insurance contracts expected at ISK 2,500–2,700 million, with a combined ratio of 92–93%.

• Next 12 months' pre-tax profit from insurance contracts forecast at ISK 1,900–2,600 million, combined ratio 93–95%.

• Core insurance operations remain strong, with favorable claims development and no major losses in the period.

• Investment performance is expected to remain a key variable for future profitability.