Linea Directa 6M 2025 presentation slides: Net profit soars 72% as premiums accelerate

Linea Directa Aseguradora (BME:LDA) presented its first-half 2025 results on July 23, showing robust growth across key metrics with net profit jumping 72.2% year-over-year. The Spanish insurer continues to benefit from its digital transformation strategy and strong performance in its core auto insurance business.

Executive Summary

Linea Directa reported a net profit of €43.8 million for the first six months of 2025, up from €25.4 million in the same period last year. This impressive growth was driven by a 10.8% increase in premiums to €558.2 million and an improved combined ratio of 92.3%, down 3.2 percentage points from 95.5% in the first half of 2024.

The company’s return on average equity (RoAE) reached 23%, reflecting strong profitability. Total (EPA:TTEF) client numbers grew to 3.58 million, representing a 7.2% increase from the previous year, with the addition of 241,000 new insured clients.

As shown in the following comprehensive income statement, the company achieved growth across all key financial metrics:

Quarterly Performance Highlights

Linea Directa’s premium growth has been accelerating throughout recent quarters, from 2.4% in the first half of 2024 to 4.8% at year-end 2024, and now reaching 10.8% in the first half of 2025. This acceleration is particularly evident in the auto insurance segment, which grew 12.9% in the second quarter of 2025.

The insurer’s client portfolio expanded across most business lines, with auto insurance clients increasing by 6.6% to 2.63 million, home insurance clients growing by 4.3% to 760,000, and other insurance lines seeing a 177.3% increase to 77,000 clients. Only the health insurance segment experienced a slight 0.7% decline in client numbers.

The following breakdown shows the distribution of premiums across Linea Directa’s business lines:

Similarly, the client distribution across business segments demonstrates the company’s strong position in auto insurance while maintaining diversification:

Detailed Financial Analysis

The company’s combined ratio, a key measure of insurance profitability, improved significantly to 92.3% from 95.5% in the first half of 2024. This improvement was driven by both better claims management (loss ratio decreased by 2.3 percentage points to 71.1%) and more efficient operations (expense ratio improved by 0.9 percentage points to 21.2%).

The following chart illustrates the breakdown of the combined ratio improvement:

Auto insurance, which represents 80% of Linea Directa’s premium volume, saw its combined ratio improve by 3.6 percentage points to 92.0%. Home insurance maintained a strong combined ratio of 88.9%, virtually unchanged from 88.8% in the previous year despite adverse weather conditions. The health insurance segment, while still operating above the breakeven point with a combined ratio of 133.7%, showed an 8.5 percentage point improvement from 142.2% in the first half of 2024.

Linea Directa’s investment portfolio, totaling approximately €1.09 billion, generated a net investment result of €22.2 million, up 33.9% from the previous year. The portfolio remains conservatively positioned with 82% allocated to fixed income securities.

The company’s solvency position strengthened during the quarter, with the Solvency II ratio increasing from 187.0% to 193.2%, well above regulatory requirements.

Strategic Initiatives

Linea Directa is accelerating its digital transformation, with digital sales increasing 7.2 times in June 2025 compared to June 2024. The company now handles 2.4 million digital interactions monthly and processes over 90% of digital requests automatically using artificial intelligence.

The insurer is also expanding its product portfolio, which has contributed to a 20% growth in its customer base. These initiatives align with the company’s strategy to be the preferred insurance provider for its clients.

The following slide highlights the company’s digital transformation progress:

Forward-Looking Statements

Looking ahead, Linea Directa aims to maintain its growth momentum while continuing to improve operational efficiency. The company’s record client portfolio, accelerating premium income (particularly in auto insurance), robust combined ratio, and steadily growing profits position it well for continued success.

As summarized in the company’s conclusion slide, Linea Directa has achieved strong results across all key performance indicators:

These results build upon the strong start to 2025 reported in the first quarter, when net income doubled to €20.8 million and the combined ratio also stood at 92.3%. The improvement in the solvency ratio from 187% in Q1 to 193.2% at the half-year mark demonstrates continued strengthening of the company’s financial position.

With its shares trading near their 52-week high of €1.44, Linea Directa’s stock has delivered a 16.07% return year-to-date, reflecting strong investor confidence in the company’s strategy and execution despite a slight 0.15% decline in the most recent trading session to €1.35.

Full presentation:

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