July 22 () –
Línea Directa recorded a net profit of 48.9 million euros up to June, 15.9% less, mainly affected by the current situation of hyperinflation and its impact on the cost of repairs and compensation, while raising 4% its income from premiums, up to 474.8 million euros, thanks to the “solid” growth in customers and billing in all lines of business (Autos, Home and Health).
In this way, the company multiplies by four the increase it registered in 2021 compared to 2020 and returns to growth rates of turnover prior to the Covid-19 pandemic.
The insured portfolio, for its part, increased by 3.8% and now exceeds 3.4 million clients, as reported by the insurer this Friday, which has highlighted that these are results that show “robust” growth of business volumes in a very competitive market and “excellent” management of claims and expenses in a hyperinflationary context.
Thus, in a context of a highly competitive market and weak car sales, revenue from premiums in the Auto business grew by 2.5% up to June, 0.2 points more than the sector.
For its part, revenues from both Home (+10.6%) and Health (+13.4%) maintained their “solid” double-digit growth and almost doubled the growth of the market.
“In complex environments such as the current one, the business model of Línea Directa Aseguradora is clearly a winner and represents a competitive advantage that is allowing us to grow steadily, profitably and beat the sector.
We are prepared to move forward with our goal of achieving a turnover of 1,000 million, based on our strengths: multi-industry group, direct model, quality of service and customer focus, increasing efficiency and digitization, and competitive prices”, highlighted the CEO of Direct Line, Patricia Ayuela.
The combined ratio of the group stood at 90%, and in Autos at 89.3%, 6.8 points better than the average for the sector (96.1% at the end of the first quarter), thanks to the control of the claims cost and an “extraordinary” effort in efficiency that brought the expense ratio below 20%.
Likewise, the insurance group has highlighted that it remains “one of the most profitable insurers in the sector” with an ROE of 28.3%.
Línea Directa is also advancing in its commitment to digitization as a lever to increase its efficiency and improve the user experience.
At the end of June, more than 85% of the firm’s clients are digital and carry out procedures such as opening parts and requesting a crane through digital channels in a high percentage.
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