Linea Directa Aseguradora, S.A. (LNDAF) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, everyone, and thank you for joining us today. We are pleased to welcome you to Línea Directa's first half 2026 results presentation. I am joined by our CFO, Carlos Rodriguez Ugarte, who will take you through the main highlights of the period, followed by the Q&A session. Carlos, over to you. Thank you very much, Beatriz, and good morning to everyone on the call. We are pleased to present a strong first half for Linea Directa, combining growth, improved technical margins, and a robust solvency position. Let me start with the key numbers for the period shown on the first slide of the deck. Gross return premiums reached 609.3 million euros, up 9.2% year-on-year, with all business lines contributing to our growth. The portfolio stood at 3.86 million risk, 7.8% higher than in June 2025. Thank you very much. Net profit increased by 19% to 52.1 million euros, supported by higher volumes, better underwriting performance and efficiency. Return on equity stood at 23.3%, while the solvency-to-ratio qualified to 196.3%, already reflecting the 18 million first interim dividend for the year. I will now go through the main drivers of this first half performance. On page number 7, premiums increased by 9.2%, supported by growth across the group. The customer portfolio also expanded by 7.8% year-on-year, with around 60,000 additional risks added in the second quarter alone. This growth was accomplished by an even further improvement in technical profitability, The combined ratio stood at 91.1% and improved farther to 19.6% in the standalone second quarter. The expense ratio improved to 20.2%, reflecting scale benefits, operating discipline, and continued efficiency gains. The investment result reached €21.8 million, driven by higher income from both the fixed income and...