Linea Directa Group has experienced three consecutive quarters of profitability since the second half of last year, with net profits of 10.1 million euros in March, a significant improvement from losses of 5.3 million in the same period last year. The company’s shares rose slightly over 2%, consolidating an overall advance of 13% for the year as they try to rebound from recent losses.
The insurance company attributes its positive trend to improved margins resulting from better client selection and revised insurance rates, as well as more efficient claims management. These factors have helped increase income by 3.4% while reducing the number of policyholders by 4.5% to 3.3 million policies issued. Premiums for all business lines, including Motor, Home, and Health, saw positive growth.
CEO Ayuela expressed optimism about the company’s future prospects, citing a solid improvement in margins and profits as confirmation of a positive change in the business cycle. The company’s Household and Health branches also saw growth in premiums issued and insured individuals, showcasing a well-rounded performance across all business segments.
Overall, Linea Directa Group returned to profitability, as reflected in a significantly improved combined ratio and increased solvency margin. The company’s Auto branch saw a notable reduction in combined ratio, indicating improved financial health and business efficiency. With a strong financial position and positive performance across all business lines, Linea Directa is poised for continued success in the future