Skagi (SKAGI) Q2 2026 earnings summary

Executive summary

• Profit for H1 2026 was ISK 396m–400m, driven by strong insurance operations and cost efficiency initiatives, with return on equity at 1.7% YTD.

• Group assets totaled ISK 84.6bn and equity was ISK 22.6bn at period end.

• Operations span insurance, investment banking, and asset/fund management.

• Core operations revenue grew 8% YoY on an LTM basis, and profit before tax from core operations increased 33% YoY.

• Investment income was resilient, with H1 2026 income of ISK 762m, up ISK 775m YoY, despite a softer Q2 impacted by weak equity markets.

Financial highlights

• Q2 2026 profit after tax was ISK 731m, down 25% YoY; H1 2026 profit after tax was ISK 395m–396m, up ISK 775m YoY.

• Insurance revenue for H1 2026 was ISK 16,474m (+7.1% YoY).

• Combined ratio improved to 90.4% in H1 2026, the lowest since 2007.

• Net operating income for H1 2026 was ISK 2,573m (+45% YoY).

• Cash flow from operating activities was ISK 3,903m, with cash and cash equivalents at ISK 2,852m at period end.

Outlook and guidance

• 2026 guidance: combined ratio 90–93% (target <91.5%), core operations PBT target > ISK 2,400m, and revenue growth >7%.

• Financial Services revenue guidance revised down to > ISK 2,900m due to slower H1.

• Expected return on insurance investment assets is 9.5% for 2026.

• Management expects continued premium growth and positive combined ratio development.