Skagi (SKAGI) Q4 2024 earnings summary

Executive summary

• FY2024 marked significant growth, with results in line with guidance and strong momentum across insurance and financial services.

• Consolidated profit for 2024 was ISK 2,258 million, with a return on equity of 10.8%.

• Skagi's organizational structure was finalized, supporting future growth and operational efficiency.

• The group completed the acquisition of Íslensk verðbréf (ÍV) in Q4 2024, expanding its asset and fund management platform.

• Legal name changed from Vátryggingafélag Íslands to Skagi at year-end.

Financial highlights

• Group core revenue reached ISK 31.5bn, up 17% YoY pro forma; profit after tax was ISK 2,258m, up 23% YoY.

• Group PBT was ISK 2,545m (+42% YoY); ROE at 10.8%; EPS at 1.19.

• Insurance revenue grew 10.2% YoY to ISK 29,182m; combined ratio improved to 94.9% from 99.5%.

• Financial services income rose 91% YoY pro forma to ISK 2,344m; AuM at ISK 227bn (+94% YoY).

• Investment income was ISK 3,657m (8.3% return), down from ISK 4,753m (10.7%) in 2023.

• Assets at year-end totaled ISK 79,183m; equity was ISK 22,271m.

Outlook and guidance

• All 2024 targets met; 2025 targets include combined ratio <94%, financial services revenue >ISK 3.1bn, and profit per share of 2.50.

• 2025 guidance: target combined ratio below 94%, net financial services income above ISK 3,100 million, and 10% expected return on insurance investment assets.

• Long-term 2026 targets set in relation to VÍS/Fossar merger; all targets currently on track.

• Dividend proposal for 2024 is ISK 500 million (22% of after-tax profit), below the 40% policy due to recent growth investments.

• Updated guidance reflects strong momentum and credible path to 2025 goals.