Linea Directa Aseguradora Sa · BME:LDA
Linea Directa Aseguradora Sa — FY2024 Earnings Presentation
30 slides from Linea Directa Aseguradora Sa's earnings presentation, Jan 29, 2025
Slide 1: December 2024 Results
December 2024 Results IFRS17&9 Presentation for analysts and investors 29 January 2025
Slide 2: Legal notice
Legal notice This document has been prepared by Línea Directa Aseguradora, S.A., Compañía de Seguros y Reaseguros (“Línea Directa” or the “Company”) for the sole purpose of presenting results and may not be used for any other purpose. The statements contained in this document relating to forecasts,
Slide 3: Index
Index 01. Where we stand 02. December 2024 Results 03. Q&A 04. Annex
Slide 4: Where we stand
01 Where we stand
Slide 5: Context
01. Context The 2020-2024 period has been marked by a macro environment of uncertainty, COVID, supply chain disruptions, lack of resolution and geopolitical risks and sudden and abrupt inflation But it has not prevented us from taking firm steps in our ambition for growth and transformation, buildin
Slide 6: Building from our strengths: leading brand
01. Building from our strengths We have a leading brand in price and service - our greatest asset #1 The most searched Spanish insurer on Google #1 Leader in advertising awareness (IOPE) #3 The brand that has improved the most in consideration in 2024 (Kantar) Quality and trust Transparency Simplici
Slide 7: Bringing the direct model to excellence
01. Building from our strengths We want to bring the direct model to excellence Digitalisation means adapting to the way and place where the client prefers to interact with us
Slide 8: Digital clients and channels
01. Building from our strengths 90% of our clients are now digital, and they 90% 51% require comprehensive Of our clients access our digital Of Motor and Home claims are opened channels, web and App, at least once a digitally and best-in-class year digital assets 60% >2MM Of tow truck requests are m
Slide 9: Growth and transformation
01. Building from our strengths Growth and transformation Growth Efficiency Technical Innovation Low Employee excellence and analytical volatility Engagement Generating resilient Success in capacity investment growth in our business Improved models Cutting-edge portfolio High degree of insurance mar
Slide 10: Sustainability and ESG are part of Línea Directa's DNA
01. Building from our strengths Sustainability and ESG are part of Línea Directa's DNA ESG business Sustainable finance 76/100 POINTS 19.1 ESG rating of the investment portfolio. Expansion of the catalogue of Low risk*. sustainable products *Morningstar Sustainability Social footprint Equality Promo
Slide 11: December 2024 Results
02 December 2024 Results
Slide 12: December 2024 Results: premiums by segment
02. December 2024 Results IFRS17&9 Premiums in the quarter by segment GWP | 12M ‘24 Profitability +4.8% vs. 12M ‘23 COMBINED RATIO | 12M ‘24 €1,020M +8.6% vs 4Q ‘23 -9.4 p.p. vs. 12M ‘23 94.7% 92.6% in 4Q ‘24 +8.2% +8.0% +17.2% PREMIUMS PREMIUMS PREMIUMS Net income | 12M ‘24 vs. 4Q ‘23 vs. 4Q ‘23 vs
Slide 13: Income statement summary
02. December 2024 Results IFRS17&9 Thousand euro 12M 2024 12M 2023 % var. 4Q 2024 ▪ Growth acceleration Gross written premiums (GWP) 1,019,606 973,281 4.8% 261,977 (premiums +8.6% in 4Q) Ordinary insurance activities income 1 991,329 960,266 3.2% 254,557 Technical insurance result, net of reinsuranc
Slide 14: Premiums and policyholders by business line
02. Premiums and policyholders Premiums and policyholders by business line Premiums Policyholders €1,020M 3,435 thousand Gross Written Premiums Policyholders Thousand euro 12M 2024 12M 2023 % var. 4Q 2024 % var. YoY Thousand 12M 2024 12M 2023 % var. 4Q 2024 Motor 826,194 792,684 4.2% 213,706 8.2% Mo
Slide 15: Combined ratio
02. Combined ratio IFRS17&9 -9.4p.p. 104.1% (8.6 p.p) 94.7% 19.6% (0.2 p.p) (0.5 p.p) 3.3% 19.1% Outstanding improvement as Progressive Greater 3.1% the actions improvement efficiency in carried out have and control of customer 81.2% acquisition been earned in administrative 72.6% the income expense
Slide 16: Motor Segment
02. Motor Segment IFRS17&9 INCOME COMBINED RATIO IFRS17&9 GWP INSURANCE INCOME (NET) IFRS 17 -9.7 p.p +4.2% +2.7% Thousand euro ▪ The combined ratio has significantly improved despite the ▪ We have strengthened the focus on customer loyalty impact of DANA on claims not covered by the Consorcio and ▪
Slide 17: Home Segment
02. Home Segment IFRS17&9 INCOME COMBINED RATIO IFRS17&9 GWP INSURANCE INCOME (NET) IFRS 17 -7.5 p.p +5.6% +5.0% Thousand euro ▪ As in Motor, Home posts an acceleration of its growth in the 4Q: ▪ The year has been extraordinary with a combined ratio of - The portfolio increases by more than 7.4 thou
Slide 18: Health Segment
02. Health Segment IFRS17&9 INCOME COMBINED RATIO IFRS17&9 GWP INSURANCE INCOME (NET) IFRS 17 +11.4% +9.1% -17.9 p.p Thousand euro ▪ Health posted outstanding growth of 17.2% in 4Q ▪ Cemented underwriting discipline and risk selection, with ▪ Premiums benefited from the improved product mix lower fr
Slide 19: Financial result
02. Financial result IFRS17&9 Mainly explained by higher income from the Thousand euro 12M 2024 12M 2023 % var. fixed income portfolio Income 37,201 27,900 33.3% Interest on bank deposits 1,754 1,596 9.9% Interest on fixed income securities 22,306 16,854 32.3% Income on equity instruments 4,325 3,01
Slide 20: Investment portfolio, movements registered in OCI and other metrics
02. Investment portfolio, movements registered in OCI and other metrics IFRS17&9 PORTFOLIO COMPOSITION Thousand euro 12M 2024 12M 2023 % var. Movements registered in OCI 12,898 23,133 -44.2% MTM fixed income and equity instruments 9,656 19,895 -51.5% 2 Realised gains (losses) in equity instruments 3
Slide 21: Solvency II: robust solvency margin
02. Solvency II Robust solvency margin Solvency margin (post-dividend) Solvency own funds walk 9M 2024 – 12M 2024 189.5% 185.4% Millones de euros 1. Solvency ratio and eligible own funds refer to Línea Directa Aseguradora stand-alone 2. The eligible own funds as of December 2024 includes the proposa
Slide 22: Solvency II: breakdown of capital required
02. Solvency II Breakdown of capital required Thousand euro 12M 2024 9M 2024 ▪ Lower exposure to equities and reduction in SCR SCR Market 106,446 107,502 quarterly symmetrical adjustment (provided by MARKET SCR Counterparty 5,273 5,704 EIOPA) SCR Health 4,123 3,864 SCR Non-Life 201,179 201,667 SCR C
Slide 23: Q&A
03 Q&A
Slide 24: Annex
Annex L es cy linea directa
Slide 25: Income statement by segment: Motor and Home
04. Income statement by segment IFRS17&9 Income statement – Motor Segment Income statement – Home Segment Thousand euro 12M 2024 12M 2023 % var. Thousand euro 12M 2024 12M 2023 % var. Gross written premiums 826,194 792,684 4.2% Gross written premiums 157,858 149,430 5.6% Income from ordinary insuran
Slide 26: Income statement by segment: Health and Other
04. Income statement by segment IFRS17&9 Income statement – Health Segment Income statement – Other Insurance Businesses1 Thousand euro 12M 2024 12M 2023 % var. Thousand euro 12M 2024 12M 2023 % var. Gross written premiums 33,860 30,384 11.4% Gross written premiums 1,694 783 116.3% Income from ordin
Slide 27: Consolidated balance sheet
04. Consolidated balance sheet IFRS17&9 Assets Liabilities and Equity Thousand euro Thousand euro ASSETS 12M 2024 12M 2023 % var. LIABILITIES AND EQUITY 12M 2024 12M 2023 % var. Cash and cash equivalents 16,709 41,746 -60.0% Financial liabilities at amortised cost 77,315 65,313 18.4% Financial asset
Slide 28: Management ratios
04. Management ratios IFRS17&9 and IFRS4 Loss Ratio Expense Ratio Combined Ratio IFRS 17 12M 2024 12M 2023 p.p. var. 12M 2024 12M 2023 p.p. var. 12M 2024 12M 2023 p.p. var. Motor 74.7% 84.0% -9.3 p.p 20.1% 20.5% -0.4 p.p 94.8% 104.5% -9.7 p.p Home 60.4% 66.3% -5.9 p.p 27.9% 29.5% -1.6 p.p 88.3% 95.8
Slide 29: Solvency II: sensitivities to the solvency margin
04. Solvency II Sensitivities to the solvency margin 197% 190% 194% 191% 185% 189% 184% 189% 181% 178% 182% 182% 169% SCR 100% Symmetric Solvency II Interest rates Credit spreads Equity markets Equity markets Real estate adjustment Ratio (+100bp / -100bp) (+100bp / -100bp) (+10% / -10%) (+30% / -30%
Slide 30: Combined ratio: IFRS 17 vs IFRS 4 comparison
04. Ratio combinado – comparativa y breve descripción de partidas NIIF17&9 vs. NIIF4 Ratio de siniestralidad RATIO COMBINADO 12M 2024 NIIF 4 NIIF 17 ▪ El ratio de siniestralidad no incluye el efecto del descuento del Primas imputadas, netas de reaseguro - movimiento en la curva que se registra en OC
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