Sjóvá-Almennar tryggingar (SJOVA) Q4 2024 earnings summary

Executive summary

• Net profit after tax for 2024 was ISK 4,241 million, with ISK 1,283 million from insurance contracts and ISK 3,435 million from investments before tax.

• Return on equity reached 17.5% for the year.

• Combined ratio for 2024 was 96.2%, within the guided range, despite a challenging claims environment.

• Sjóvá maintained its position as the top insurance company in customer satisfaction for the eighth consecutive year.

Financial highlights

• Total insurance contract revenues grew 7.4% year-over-year to ISK 33,598 million.

• Net profit after tax for Q4 2024 was ISK 2,812 million, up 21.1% from Q4 2023.

• Investment income for 2024 was ISK 5,474 million, a 14% increase year-over-year.

• Investment assets under management reached ISK 62.8 billion at year-end.

• All asset classes except unlisted equities delivered positive returns; listed equities returned 16.7% in 2024.

Outlook and guidance

• 2025 guidance: pre-tax profit from insurance operations expected at ISK 1,700–2,400 million, with a combined ratio of 93–95%.

• No specific guidance for investment income, but long-term return assumption is 8.5% per year.

• Negative impact from discounting of insurance liabilities estimated at ISK 1,500 million for 2025.