MADRID, 21 Oct. (EUROPA PRESS) -
Línea Directa Aseguradora recorded a net profit of 58.3 million euros during the first nine months of this year, which represents a decrease of 32.4%, while income from premiums amounted to 710.7 million euros, 4.1% more, in an adverse economic context marked by inflation, as reported by the company on Friday.
Línea Directa has attributed the drop in profit to the impact that a singular inflation in repair costs in the third quarter had had on the accident rate and the technical result, and the increase in the frequency of claims in Autos y Hogar.
"Despite the current adverse context that is penalizing us in the short-term profit, Línea Directa maintains its fundamentals intact and I am convinced that the work we are doing will be reflected in the value in the medium and long term", stressed the director Delegate of Línea Directa Aseguradora, Patricia Ayuela.
The immediate effect on the income statement of cost inflation is still not compensated, according to the firm, by higher income from premiums, which have a longer cycle, and caused the group's claims ratio to reach 72, 8% (6.9 percentage points) and the combined ratio 92.9% (6.5 percentage points).
In addition, the company reduced the expense ratio, which fell to 20.1% (-0.4 percentage points), thanks to its policy of rigorous control of general costs and its strategic commitment to efficiency.
Línea Directa also registered a differential level of profitability, with an ROE of 24.2%, the result of "good performance of commercial activity and the efficiency of its direct business model".
On the other hand, the company's solvency margin stood at 189.1% and allows the group to maintain shareholder remuneration.
The group's income from premiums grew by 4.1%, thanks to the growth in business volumes in all the business lines in which it operates (Autos, Home and Health).
This positive evolution of income is the result, according to the insurer, both of the new production and the boost of cross-selling and an increase in the loyalty rates of the portfolio, and it shows the capacity of Línea Directa to grow also in an environment of weak demand.
The company's insured portfolio at the end of the third quarter of 2022 stood at 3.44 million clients, which represents a year-on-year increase of 3.5%.
The turnover of the Auto business increased by 2.9% up to September, in line with the sector, after growing by 2.4% in policies.
Home (10.2%) and Health (11.4%), for their part, maintain their outstanding growth in premiums and now account for 18% of the group's business, which allows the insurer to advance in its strategy of diversifying income.
