Linea Directa Aseguradora, S.A. (LNDAF) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello, everyone. My name is Beatriz Izar, Head of Investor Relations at Linea Directa. We published our first quarter figures earlier on this morning and I have here with me Carlos Rodríguez Ugarte, our CFO. And with these words, over to you, Carlos. Thanks a lot, Beatriz, and good morning to everybody on the call. We are very pleased to deliver an excellent set of results for the first quarter. I would like to start by talking about the key figures on page number five. Business growth accelerated to an increase of 9.5%, with motor at 9.1%, home at 8%, and health at 14.4%. The portfolio grew more than 184,000 policies to 3.5 million policies. Combined ratio was excellent and stood at 92.3%, down 5 percentage points from last year. Net income doubled that of first quarter 2024. Return on average equity rose to an excellent 21.8%. And finally, solvency increased to 187%. Moving to page number six. Here I would like to highlight once again the acceleration in the top line driven by the motor line of business. We expect this high single-digit growth to continue throughout the year together with sound retention levels. We posted an excellent combined ratio with outstanding improvement in the claims ratio and very contained expenses. The evolution of the financial result was also remarkable, up 10.6% with higher income from the bond portfolio. And all these led us to a profit after taxes of 20.8 million euros, which compared to 10.1 million euros over the same period of last year. That is a two-fold increase. As with regard business volumes and clients, all line of businesses reported significant growth, both in premiums and policyholders. Customer retention improved very significantly. In health, our core products, complete, specialist, and essential, grew by 15.8%. Movin...