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Línea Directa earns 46% less in 2022 affected by the high accident rate

Date: March 28, 2024 Time: 15:45:23

Línea Directa earned 59.5 million euros, which represents a 46% drop compared to 2021, when the insurer earned 110.14 million euros. This was impacted by inflation at record levels and an increase in claims that has affected the insurance sector as a whole. The group’s premium turnover for the year as a whole amounted to 946.7 million euros, which is the highest volume in the company’s history and 4.4% more than in the same period of 2021.

The insurer acknowledges that high inflation, which has caused a strong and regrettable increase in repair costs, the increase in the scale of injuries and fatal accidents, and to a lesser extent the increase in the frequency of claims due to the recovery of mobility at pre-pandemic levels, together with average premium levels at record lows, it has had an extraordinary impact on the technical margins of the sector.

In this way, Línea Directa practically quintupled the growth of the two previous years in 2022 and is once again at rates of increase in its turnover prior to the Covid-19 pandemic, as updated by the insured in a relevant fact sent to the National Stock Market Commission (CNMV). Still, the combined ratio rose 8 percentage points to 96.3% from 88.3%.

This evolution is the result of the growth in billing in all the business lines in which it operates (cars, home and health) thanks to the entry of new customers and good levels of loyalty. The portfolio increased by 3.4%, with a total of 114,000 policyholders, reaching 3.46 million customers, thanks to the company’s commitment to multi-branch.

Division by branches

By branches, the behavior of cars stands out. Revenues amounted to 772.8 million euros, 3.3% more, in line with the sector average. The company’s turnover in this segment grew by 4.6% in the fourth quarter, above the 1.7% that disappeared in the first three months of 2022 and the increase of 3.4% and 3.5% of the second and third trimester.

In home insurance, Línea Directa increased billing by 9.5%, 4 percentage points more than the sector as a whole, to 143.7 million euros, driven by portfolio growth of 5.6%, to 752,000 insured, the company said. This line of business already accounts for 15% of turnover.

Vivaz, the health insurance brand of Línea Directa Aseguradora, grew 4.6% in clients, exceeding 110,000, and 10% in premium income, 2.6 percentage points more than the sector, standing above the 29 million euros

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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